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    • garym1977
    • By garym1977 13th Sep 18, 9:23 AM
    • 14Posts
    • 0Thanks
    IVA and 2 credit cards
    • #1
    • 13th Sep 18, 9:23 AM
    IVA and 2 credit cards 13th Sep 18 at 9:23 AM

    This is my first post.

    I have two years left on my IVA. Due to being too ashamed to tell my IP that I couldn't afford to live, I now have two credit cards on top of my IVA.

    My question is this.

    Should I inform my IP about the situation and come clean, or should I try and deal with the credit card company myself and try to keep up with the IVA?

    I feel rotten that I have put myself in this situation but am willing to do as much as I can to settle my debt. I find it impossible to speak over the phone to creditors. It is my silence that has contributed to my position.

    Any advice would be greatly appreciated.

    Many thanks in advance.
Page 2
    • garym1977
    • By garym1977 16th Sep 18, 1:14 PM
    • 14 Posts
    • 0 Thanks
    I am researching bankruptcy at the moment. Its either that or try to hold off Vanquis while I pay the IVA off, then start paying Vanquis. If I go this route, Aperture may find out anyway.

    My conscience is nagging me to phone Vanquis and try to come to an agreement to eventually pay them off as I took on the debt with its conditions in the first place. But the sound of a new start is very appealing although I would feel like a fraud.

    Thank you for your advice. I will let you know which way I decide to go.
  • National Debtline
    Hi again Gary

    Bankruptcy can be a big step but you need to consider realistically how long it would take you to repay the debt if you do not go down that route. If your IVA is not really affordable, even without taking into account the credit card payments, then you need to make some changes.

    As mentioned earlier, give one of the free debt advice agencies a call and talk through the bankruptcy process in detail to make sure you are happy about how it will work. On the face of it bankruptcy was probably always going to be a better option for you than an IVA if you have no assets.

    Good luck with it all

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • garym1977
    • By garym1977 17th Sep 18, 2:59 PM
    • 14 Posts
    • 0 Thanks
    When I contacted citizens advice to enquire about bankruptcy they told me that a dro would be better for me. To do that though I have to let my IVA fail. Vanquis bank will then be chasing me all the time for money while all this gets set up. I am.once again confused. I have done a new income sheet and have nothing left after regular expenses.If I cancel the IVA myself, what happens if I can't get the DRO? I do meet the criteria for a DRO but you never know.
    Last edited by garym1977; 17-09-2018 at 3:47 PM.
    • sourcrates
    • By sourcrates 17th Sep 18, 4:16 PM
    • 16,160 Posts
    • 15,285 Thanks
    If I cancel the IVA myself, what happens if I can't get the DRO? I do meet the criteria for a DRO but you never know.
    Originally posted by garym1977

    Obtaining a DRO is done through an intermediary such as CAB or stepchange, if you qualify, and the intermediary submits your application, then its more or less a done deal it will be approved.

    They will not submit an application if there is a likelihood of it been rejected.

    You should wait and officially fail the IVA first, forget about creditors contacting you, its unlikely to happen, and is not of any importance whatsoever.

    Less than 1% of DRO applications get refused, as Fatbelly has told you already, its a simple straightforward process.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly". I have extensive experience of debt, and itís solutions, as well as the collection industry in general.

    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to Any views are mine and not the official line of

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • garym1977
    • By garym1977 17th Sep 18, 6:03 PM
    • 14 Posts
    • 0 Thanks
    So my plan is to write and tell my IVA company I want to end my IVA. Should I mention the 2 credit cards?

    Then write to Vanquis informing them I can't pay and tell them my intentions and pay nothing towards any of the debts for the time being.

    Does this sound plausible?
    • PrettyKittyKat
    • By PrettyKittyKat 17th Sep 18, 7:01 PM
    • 984 Posts
    • 957 Thanks
    Sounds like a great start.
    • garym1977
    • By garym1977 19th Sep 18, 7:33 AM
    • 14 Posts
    • 0 Thanks
    After a lengthy conversation with business debtline (because I am employed and have a self employed job besides) I decided to terminate my IVA.

    I Rang my IP and told them I want to terminate my IVA. They told me I might be able to successfully end my IVA now if creditors agree because I have made a good contribution. I rang debtline back and they advised me to tell my IP about my new credit card debt as it would probably be found out during the ending process anyway. I did this and the only option then was to terminate my IVA myself, which I have done (over the phone and

    So now waiting for the IVA termination certificate to apply for a DRO through business debtline. I only hope that the amount I owe the original creditors has gone down enough to apply for a DRO. The IVA was just under 18k when it started and I have paid just under 6k in contributions.

    So will have to wait and see. Just though I would keep everyone informed as people have been so helpful here.

    National Debtline were so very nice and helpful. They didn't judge me at all regarding my situation. I've spoke to three different advisors over the last two days and each one was really polite and of immense help.

    Thank you everyone,

    I will keep you posted.
    • garym1977
    • By garym1977 8th Oct 18, 7:54 PM
    • 14 Posts
    • 0 Thanks

    I eventually called Vanquis bank and informed them I couldn't pay anything. I also informed my IP and have now voluntarily terminated my IVA.

    The lady I spoke to at Vanquis was very helpful. I told her that if my situation didn't improve, I would be applying for a DRO, as advised by business debtline. They said they will phone me in 30 days for an update.

    I wondered if it was worth getting in touch with the original creditors that were included in the IVA and asking them if they would write off my debt as I got about 70 percent into my IVA so made a fair contribution. If they don't then I will be forced to apply for a DRO, in which case my debt will be written off anyway.

    Any opinions?
    • PrettyKittyKat
    • By PrettyKittyKat 8th Oct 18, 8:15 PM
    • 984 Posts
    • 957 Thanks
    I suspect your balances won't be low enough to do a DRO as they were 18k to start with + 6k in new credit card debt. You have only paid £6k innto your IVA so much of that would have been taken to pay fees. I suspect you will be just over 20k so I would recommend starting to save for bankruptcy fees just incase also.

    You could write to your creditors, although it may be a waste of the cost of a stamp and your time as they probably got very little return from your IVA, plus they won't take any notice of your letter until they get the IVA failure certificate.
    • garym1977
    • By garym1977 8th Oct 18, 10:00 PM
    • 14 Posts
    • 0 Thanks
    I will wait until I get my IVA failure certificate then and then write to them. They may as well write off the debt. They must know they won't get their money by now. I can't pay them if I can't pay anything into an IVA. I am tempted to string this out and see what happens before jumping into another settlement plan.

    Thank you for your reply.
    • PrettyKittyKat
    • By PrettyKittyKat 9th Oct 18, 9:13 AM
    • 984 Posts
    • 957 Thanks
    Including a copy of your new I&E showing no affordability would help. Also consider explaining that you tried the IVA to repay some debt but you were naive as it was not affordable and you ended up getting into additional debt to maintain your IVA payments. It won't do you any harm to try. Definitely start saving for bankruptcy fees in the meantime though
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