Regretting taking an IVA

Works1234

Hi just looking for some advice, I took out an Iva 8 months ago and I’m really regretting doing it as I didn’t understand how these things worked. I feel I was a little mislead and nothing was explained to me correctly. I understand it will be my fault for not reading all the small print and understanding how much the fees can cost . I feel I just rushed into it too quickly. Recently I have had quite a big change of circumstances because I’ve actually got my house rent free with work unexpectedly. So this increases my surplus income significantly. The Iva was for £14000 paying £100 a month for 5 years. So now my payments will increase dramatically as far as I’m aware will probably end up paying the whole lot plus the massive fees Iva company will charge . I was wanting too know if I can leave the Iva and go on a debt management plan instead even if I have too cut my losses for what I have already paid into the IVA and whatever fees they will charge. Really think a Debt management plan would be a much better option and just want some advice about how I can do this . Thanks for your help 

Grumpelstiltskin

Yes you have make an expensive mistake, I say this as your debt was way too small for an IVA, also IVA'S 
 are only suitable for home owners not renters.

What research did you do before you signed up? Did you see an advert on social media?

The IVA  company want their big fees before any money is paid to your creditors so I guess nothing has been paid over to your creditors yet.

You can stop paying and let the IVA fail but it takes months to fail.

sourcrates

You are not alone, IVA`s are mis-sold on a grand scale, they were originally created to be an alternative solution for homeowners with massive debt, who could not go bankrupt, but due to slack regulation they have been sold to many individuals when it was wholly inappropriate.

So you have no assets, such as a house, that the IP could potentially make you bankrupt for, so that`s good, basically all you have to do is stop paying the IVA, and let nature take its course.

It can take up to a year for it to fail, you can write and tell your IP your intentions, its up to you.

Until its officially failed, you are still protected from further action, and once they confirm failure, you can do as you wish.

Works1234

Grumpelstiltskin said:

Yes you have make an expensive mistake, I say this as your debt was way too small for an IVA, also IVA'S 
 are only suitable for home owners not renters.

What research did you do before you signed up? Did you see an advert on social media?

The IVA  company want their big fees before any money is paid to your creditors so I guess nothing has been paid over to your creditors yet.

You can stop paying and let the IVA fail but it takes months to fail.

Thanks for the quick reply and your help. Yeah I was worried about everything and just rushed into this thinking it was the answer to all my problems. I did very little research and feel rather stupid now. I have learnt a lot since then especially here, yes it was a social media advert too 

Works1234

sourcrates said:

You are not alone, IVA`s are mis-sold on a grand scale, they were originally created to be an alternative solution for homeowners with massive debt, who could not go bankrupt, but due to slack regulation they have been sold to many individuals when it was wholly inappropriate.

So you have no assets, such as a house, that the IP could potentially make you bankrupt for, so that`s good, basically all you have to do is stop paying the IVA, and let nature take its course.

It can take up to a year for it to fail, you can write and tell your IP your intentions, its up to you.

Until its officially failed, you are still protected from further action, and once they confirm failure, you can do as you wish.

Thanks for the prompt response. No I'm not a homeowner and from what I’ve learnt since taking the Iva is that they are intended for people in a lot more debt than me. Really I should have come here first and spoke to you guys before making any decisions, but really appreciate you clearing this matter up for me