Trying to cancel an iva

feitch

I took out an iva sep 2019 as I owe over£25000, I’m self employed and the company used my wage from 6 months before to work out what I could afford to pay, although I wasn’t actually earning as much which is why I was struggling.
Anyhow, last month I emailed the company to cancel my iva as I’ve decided to apply for bankruptcy. Received an email back today from iva company to tell me that they don’t feel going bankrupt is best for me and if I send them bank statements they can look at reducing payments. I’ve already missed 7 months of payments, they gave me 3 months grace because of coronavirus. I already sent them bank statements for feb, mar and April to tell them even before coronavirus I couldn’t afford the payments. And I was hoping that they would cancel it ages ago as they kept emailing threatening to cancel the iva but now I’ve told them to do it they are digging their heels in. So is this allowed? For them to ignore my request to cancel? At the moment I don’t have the £680 bankruptcy fee but was hoping to get this cancelled ASAP. Any thoughts??

sourcrates

You cannot just cancel an insolvency, it has to be allowed to fail, usually by non payment.
It can take a year or more to wind up the arrangement.

You can only have one form of insolvency at a time, so until you get the failure certificate, there is nothing you can do.

feitch

Thank you but according to info on this site I’m within my rights to cancel the iva at any point in the agreement. Also loads of info on the gov website stating this also. And I can apply for bankruptcy while im still in the iva. I just don’t see how they can get away with dragging it out but I guess they are trying to get their fee.

RauHughes

feitch said:

Thank you but according to info on this site I’m within my rights to cancel the iva at any point in the agreement. Also loads of info on the gov website stating this also. And I can apply for bankruptcy while im still in the iva. I just don’t see how they can get away with dragging it out but I guess they are trying to get their fee.

Write a formal letter, signed and dated, requesting the termination of your arrangement. Scan it and email it to them. 

Until you do this you haven't formally requested the closure of your Arrangement. The IP will be hard pressed to justify to creditors why the arrangement has not yet been terminated at the annual report. Once your request is accepted, the termination process can be ~3 months so don't expect miracles