Terminating IVA

Dob025

I’m currently 2 years in an IVA however when I took out the IVA I believe a DRO would have been more suited to myself, 18k worth of debt, renting, no assets to protect, my surplus was £97 per month just over the limit for a DRO however the IVA company suggested I had to decrease some expenditure which took the surplus over the amount, I’m in a better place now and will soon be gifted some money, I want to terminate my IVA and deal with my creditors directly offering some final settlements on the small debts and paying off some larger ones monthly to clear them sooner than the 3 years left, most of them are with Lowell, my main worry is that if I ask my IVA company to terminate they will make me bankrupt so looking for advice how is best to deal with them, also in my contract it says I can terminate without a creditors meeting.

Grumpelstiltskin

Well you now realize the IVA company had only one thing in mind when you spoke to them and that was how to make as much money from you as they could. The fact that an IVA was totally the wrong thing for you  to do as of no interest to them.

You can just stop paying and let the IVA fail but it won't happen overnight, have you spoken to any of the debt charities at any point.

Dob025

I know, I was stressed with all the debt letters at the time panicked and signed up to the first company I spoke to, my mistake completely, not spoken to any charities, I could stop paying and let it fail but I thought with the option of being allowed to terminate without a creditors meeting that would be done quicker so I can start making other arrangements without the chance of them making me bankrupt

sourcrates

They won`t make you bankrupt, you rent and have no assets, just what are they going to gain from making you bankrupt ?

You just stop paying, it takes a while for the arrangement to fail, but in the end once everything is sorted out, collection activity will re-start, and you can do as you wish.

flipflopflo

And while you are waiting for them to fail the IVA you could save what you were paying the IVA company and use it as a fighting fund to offer some full and finals once they start chasing you again. There’s even a thread on the DFW board for help in doing F&Fs. 

https://forums.moneysavingexpert.com/discussion/115430/full-and-final-settlement-help-thread#latest

Dob025

Thank you all for the advice, I’ve not got long to make a decision as my annual review needs to be submitted this week and I know they will want a lot more but that will be a breach anyway if I don’t submit it