Is it too late to back out of an IVA?

MartyB93

So I'm currently in £9000 worth of debt. I sought help through a company as my monthly repayments are very high and i wanted to reduce them. 
They suggested an IVA and this at the time sounded like the right idea. I said yes and they are currently arranging the paperwork to go through with it.
Upon doing my online research I do feel that a debt management plan is the best option for me as I have no assets and I do want to repay my debt off in full rather than look to write it off. I have saved a lot this year and already managed to pay over a grand off. It's also likely that I will be receiving a windfall in the next 5 years.

I haven't signed anything yet but did verbally agree to go down the IVA route - can I still change my plan? I recognise that this is going to be a major inconvenience to the company but I didn't know enough about my options at the time and an IVA seems like a very scary solution.
I do feel like I can pay my debt off in full but I just need smaller payments for the time being to get my back on my feet - my monthly debt outgoings are 410 a month.

Any advice would be great.

fatbelly

An IVA for 9k is ridiculous, particularly with no assets to protect.
You've not had your creditors meeting yet - tell them you're not proceeding with it and you're not signing anything. It sounds like they are the sort of organisation that needs inconveniencing.

A dmp based on what you can afford, with your windfall being used for full & final settlement sounds ideal.
A windfall received during an IVA goes to pay your creditors in full PLUS the Insolvency Practitioner fees.

sourcrates

Verbal agreement, is not a binding agreement, you have not signed the papers yet, inform them as soon as posible you no longer wish to proceed.

I agree an IVA for 9k of debt is verging on the ridiculas, it just goes to show how desperate these DMC`s actually are.

Just for your information OP, IVA `s were originally designed with homeowners in mind, who had massive debts, but could not go bankrupt as they had assets to protect, when i say massive debts, i means 40k and upwards, although there are no limits either way, the bigger the debt the better where IVA`s are concerned.