HELP! IVA Cancel or Keep?

Mercury36 · 14 November 2019 at 10:34AM

Hi All,

First time I've created a thread and really interested to know your thoughts..

Initially I thought an IVA was for me and for 2 and a half years it was... in the last 6 months my circumstances have changed, resulting in me looking for somewhere to live. In an ideal world, I would like to look at a mortgage but I'm under no illusion that this would take several years for this to become a reality. I am willing to make sacrifices in order to get to that point. My main question.. after almost 3 years of paying into an IVA would there be any "time" benefit to cancelling it and dealing with my debt directly with creditors?

Will paying my creditors directly improve my credit score quicker than waiting for my IVA to end and ultimately waiting for it to come off my credit record?

I've looked at what seems like 100s of advice websites but honestly, some seem quite contradictory.

Any advice would be greatly appreciated.

Thanks in advance

Scousegirl13 · 14 November 2019 at 12:09PM

Hi Mercury,

I used to work in an IVA company. I wouldn't recommend cancelling the IVA as once you cancel the IVA, all the interest that the creditors froze 3 years ago will be added back on to your debts so you will be worse off. Also even if you cancel the IVA, the IVA will remain on your credit file for 6 years. Your credit score wont be good till the IVA drops off in another 3 years time.

sourcrates · 14 November 2019 at 3:48PM

Plus there is the (albeit remote) possibility your creditors could petition for your bankruptcy if your arrangement fails, your best bet is to continue with it and get it successfully completed.

PrettyKittyKat · 14 November 2019 at 7:25PM

I agree that if your objective is to get a mortgage then completing the IVA is your best options.

I presume your change in circs hasn't affected your ability to pay? I would recommend getting into rented accomodation and using the next 3/4 years whilst your IVA completes and is removed from your credit file to save whatever money you can (e.g. your part of additional monies earned).

fatbelly · 14 November 2019 at 8:44PM

The IVA stays on your record for 6 years, regardless.

The individual creditor entries stay on your file for 6 years from when they are defaulted.

So nothing you do now is going to change that situation.

The question I think you are asking is - 3 years into an IVA is it best to see it complete or to get it terminated and apply for bankruptcy/DRO/etc.

No-one can answer that question without more details regarding your situation.

HELP! IVA Cancel or Keep?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free