Can I cancel or terminate a IVA ?

I have currently been in my IVA for three months and made three payments but I have had a job change and in my new role working I can’t have any insolvencies or bankruptcy. My new job is better pay, but I’m unsure what to do ? Also I managed to come to an agreement with two of my creditors over payments without the use of the Iva. Can anyone help ?? 
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  • Grumpelstiltskin
    Grumpelstiltskin Posts: 4,125
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    edited 12 October 2023 at 9:16AM
    Well you can stop paying it and let it fail, that could take many months. You should have included all the debts in the IVA.

    Why on earth did you enter an IVA?

    Did you take any independent advice?

    What was your total debt, and do you have a mortgage to protect?

    You do realize your new employer can see online that you have an IVA?
    If you go down to the woods today you better not go alone.
  • I entered an Iva to help with my debts as I was told it was the best solution for me in my situation. My debt was £10,000 but seems to been reduced to £7,600. I took advice from citizen advice but I think i should of gone with a DMP but my IVA hasn’t come up on my credit report yet and half of my creditors have said they didn’t know i was in one. No mortgage which is
    a relief and my employer has told me that they want this to be sorted. 
  • You made a huge mistake going into an IVA for just £10.000, who told you it was the best solution? Someone you saw on social media? I honestly can't see any Citizens Advice advising you an IVA was the best way forward in your situation.

    Have you looked on here to see if your name is there?

    Search the bankruptcy and insolvency register - GOV.UK (www.gov.uk)
    If you go down to the woods today you better not go alone.
  • fatbelly
    fatbelly Posts: 20,215
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    You can complete an IVA by making full payment of what is owed to your creditors, plus the fees due to your insolvency practitioner.

    You can terminate an IVA, or shall we say force it to terminate, by stopping payment to it. This can take a long time, possibly 12 months. Until it terminates you are protected from enforcement action by your creditors. After this, you can be subject to a bankruptcy application by creditors or the IP, but this rarely happens and I can't' see it doing so in your case as there is no property being protected.

    I am very concerned about CA being involved in this case (I work for them). Please would you complain so that we can see what happened.

    https://www.citizensadvice.org.uk/about-us/contact-us/contact-us/make-a-complaint-about-us/

    I am also puzzled that it does not show on your credit file.
  • Thank you for the register information I can see now I am not on it which is a good thing I think, I got in touch with them no answer on phone so email them. Citizen advice gave me options and at the time when I explained my situation they said they wouldn’t recommend bankruptcy but there is an option for an IVA. Which might be more suited for me so I just went with that as a first choice not really thinking about it. But I managed to get in touch with step change today and they told me what to do. But thank you for the links. That register really helped 
  • fatbelly
    fatbelly Posts: 20,215
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    edited 12 October 2023 at 2:41PM
    So you don't have an iva? No problem with your employer then

    Ps. Could you still complain about CAB though, because that advice sounds screwy, as if someone may be getting a backhander
  • You say you have made 3 payments but can't see the IVA anywhere?

    I hope it isn't a scam where someone has been taking your money but not applying for the IVA.

    How did you find the company?
    If you go down to the woods today you better not go alone.
  • Its called the insolvency group, I remember seeing them on advert but there website looks legit. They said to cancel the IVA to put it in writing which I have done, about my work and about the IVA. Step change had a template for the letter which was good, I spoken to them too to set up a DMP instead. I will still make the complaint 
  • Martico
    Martico Posts: 910
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    One quick thought if your new job is strict about insolvency (and for general privacy) - you might want to ask the mods to change your username to something anonymous, they're normally happy to do so as far as I'm aware
  • fatbelly
    fatbelly Posts: 20,215
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    That's actually one of the most professional-looking IVA set-ups I've seen (please note that this is not a recommendation to use them)

    Their website does say:

    You can request a voluntary termination of your IVA but it is not advised unless the reasons for doing so are acceptable. Cancelling an IVA can result in serious consequences. It needs a lot of thought and you should discuss it with your Account Manager. If after discussing with your Account Manager you want to proceed with the termination of your IVA, then you need to confirm this in writing to your Supervisor. Your Supervisor will fail the IVA and send you a Certificate of Termination and his Final Report. You will still need to address your outstanding debts and may be responsible for any outstanding costs incurred from the administration of your IVA.

    Can you let us know what happens?

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