Cancel iva and pay creditors direct?

Agingbadley

Hi all... New to the forum

Oh well, here goes

Homeowner with decent equity(50%)
4 kids under 18 when I entered. 

24k debts with 2 resulting in ccjs about 5 years ago
Spoke to a debt company (can't remember who now) who after looking at my situation advised that an iva was the best option. 

24k debts 
44 months into a 72month agreement of 185 pound a month. 
So 8200 ish paid so far

Long story short is that I've recently had a sizeable salary increase from 35k to over 60k and am wondering if it would be advisable to cancel the iva and deal with my creditors direct. 

From reading on here, it's suggests there's a period of time ranging from 6-10 months whereby, if I cancelled my monthly payment... I can save up my payments (as well as anything else I can save) and then have a lump sum to pay off at least some of the creditors. 
I fear that my payments will be rather more than they are now if I was to carry on with the iva but am worried about the liklihood of bankruptcy proceedings by the IP. 
I think I read somewhere that no debtor can force this through unless your debt totals over 5k but debtors can get together and then it becomes a problem. Is there any truth in this? 

Thanks for reading
Any advice is welcome

RAS

In this sort of situation, you could end up paying back the other £16k plus the IP fees which could be £4-9k ish.

You should be able to find out what the fees are looking at your agreement. Most of what you have already paid will have gone in IP fees anyway, and very little to your creditors. So according to the schedule effectively you owe say £3k in fees and £21k debt. 

fatbelly

Bankruptcy following a failed IVA is a very rare situation, so forget it.

You are over half way through your IVA so you could stick with it until you know how much the IP wants for the final 24 months.

If it is a ridiculous figure that would leave you paying more than the debt value then it does make sense to let the IVA fail and see who emerges and how much they want. As you say, 6-10 months would be a typical period

Agingbadley

Would the fees still be payable if I was to let it fail? 
Other than what I've payed already that is. 
I've worked out that I could potentially save 9k by December that I could offer to the creditors should I go down this route

Fatbelly
I think id end up with 36 months as I'd need to pay the extra year due to the fact I wouldn't be able to remortgage. When it was explained to me that this would be a requirement of the iva at the outset... I questioned the point of the clause and stated I wouldn't be able to remortgage at which point eimply made the original agreement for 72 months rather than the normal 60 plus extra 12

Grumpelstiltskin

Yes your fees are payable. The IVA company is in this as a business so they want their fees come what may, and to be sure they get them they pay themselves first before they pay any creditors.

ManyWays

You are unlikely to get a low settlement on the CCJs
Painful though this is, completing the IVA is usually your best bet here. 

Agingbadley

Thanks for the replies so far

As you say RAS the fees are 3650
1900 of which is the nominees fee
1750 is the supervisors fee

Does this change if the iva is taken over by a 2nd company... Ie pay 2 sets of fees?

I've paid circa 8400 to date so I'm guessing there has been almost 5k paid towards the debts so far?

My thinking was that even paying the debts in full, after 9 months of saving (should I stop paying) I would be able to clear roughly 15k of the debt (9-10k saved up and 5k already payed) and then be able to negotiate terms/repayment plans for the debts that I'd not be able to clear straight away

sourcrates

You only pay one lot of fee`s, no matter if the arrangement changes hands or not.

So no worries on that score.