Leave IVA?

Smiler2214

Thank you so much guys, I feel so much more positive about my situation. Funny_bunny I might see if if they offer me a final settlement. I'm going to put the money that I was paying to IVA company and once the creditors get in touch try and negotiate. Thanks again, wish I had known of this forum 3 years ago when I was so low.

Maskface

Smiler2214 said:

Thank you so much guys, I feel so much more positive about my situation. Funny_bunny I might see if if they offer me a final settlement. I'm going to put the money that I was paying to IVA company and once the creditors get in touch try and negotiate. Thanks again, wish I had known of this forum 3 years ago when I was so low.

Drop back here when they start to make contact. Don't be put off by the wording of the letters when they arrive either, they are always worded in a way to make you feel they have much more power over you than they really do. You may even find the IVA company try to deter you from breaking the agreement but I'm sure people here can advise how to deal with them. There's no reason you can't contact the creditors now just to test the water and ask them what the least they would accept as full and final settlement is if you did decide to leave the arrangement you currently have. It won't commit you to anything just asking. I found they were a lot more willing to negotiate and very easy to talk to. You might even get a better deal regardless by dealing with them directly. 

fatbelly

Personally I wouldn't contact the creditors at this point. It will be many months before they realise something is wrong and shouldn't be writing to you direct while the IVA is still registered as 'current'.

Use this time to save a 'fighting fund' and get your expenditure under control.

When you do start to get letters - and this may be many months after the IVA is terminated - you may be surprised about who is writing to you because some of the debts will have been bought by companies who specialise in buying insolvency debts.

Having an idea of settling by full & final settlement, as has been mentioned, is a sensible strategy.

sourcrates

You cannot contact the creditors as yet, because an IVA is a legally binding agreement, they are forbidden to discuss your debt, so that must fail first of all.

fatbelly outlines a good course to steer above, CAB advisor, may have been new, they must have confused defaults with "Arrangement to pay" markers, as they stay visible for 6 years after your last payment, defaults vanish on 6th anniversary regardless of anything else.

fatbelly

Yes, I agree with that. I would guess that 9 out of 10 CAB advisers would not be able to give correct advice on that as their information system has been so dumbed down that it would not help them. Not their fault but a better answer would have been

'I'll google it for you'

Smiler2214

Haven't been on in a few weeks so thought I'd give an update on my current situation. 

I haven't contacted iva company yet but I have stopped making payments. Really need to email them as my phone is ringing none stop from them. Phone is on silent permanently 😆 

I can't make any payment plans arrangements with any creditors yet but I can access the online account of my biggest creditor PRA group (originally Aqua credit card)and there is an option to do card payments so I'm going to start making weekly payments to them. I owe them just under 4k so they will almost certainly be in touch once iva fails so wanted to make a start.
My 2nd biggest creditor is Halifax, I owe them 1,150. I'm hoping they will accept a payment plan. I then owe 200 and 350 on 2 capital one credit cards and 140 to max recovery (have no clue who the original creditor was lol) so I'll wait abd see if they get intouch. It's the PRA group and Halifax I want sorted. The rest are for daft amounts. 
I'm just hoping PRA group and Halifax aren't difficult when negotiating a payment plan. I'm hoping I can spread the Halifax over a year and hoping PRA group will accept 50 a week.  My offer is a lot more generous than what they were getting when I was in an iva so hoping they'll accept offer. 

sourcrates

Smiler2214 said:

Haven't been on in a few weeks so thought I'd give an update on my current situation. 

I haven't contacted iva company yet but I have stopped making payments. Really need to email them as my phone is ringing none stop from them. Phone is on silent permanently 😆 

I can't make any payment plans arrangements with any creditors yet but I can access the online account of my biggest creditor PRA group (originally Aqua credit card)and there is an option to do card payments so I'm going to start making weekly payments to them. I owe them just under 4k so they will almost certainly be in touch once iva fails so wanted to make a start.
My 2nd biggest creditor is Halifax, I owe them 1,150. I'm hoping they will accept a payment plan. I then owe 200 and 350 on 2 capital one credit cards and 140 to max recovery (have no clue who the original creditor was lol) so I'll wait abd see if they get intouch. It's the PRA group and Halifax I want sorted. The rest are for daft amounts. 
I'm just hoping PRA group and Halifax aren't difficult when negotiating a payment plan. I'm hoping I can spread the Halifax over a year and hoping PRA group will accept 50 a week.  My offer is a lot more generous than what they were getting when I was in an iva so hoping they'll accept offer. 

Smiler,

Don`t do anything until you have official notification your arrangement has failed.

Any payments you make individually to your creditors at present, will have to be forwarded on to your IP, they are duty bound to do this, they cannot accept payments on these debts whilst your IVA is still live.

I suggest you wait, and try not to complicate this matter any further.

Individual creditor contact regarding collection activity, is a long way off yet.

Just be patient for now.

fatbelly

Use this time to build up your fighting fund so that you can offer full & final settlement to whoever now owns the debt.

Max Recovery are an example of firms that buy insolvency debt - I can only imagine how little they pay.