Unhappy with your IVA? Here’s how to cancel it

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Unhappy With Your IVA? Heres How To Cancel It
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• So, you joined the sky-rocking numbers of
  consumers who today use an IVA. Except things
  arent going exactly to plan. For whatever
  reason, youre unhappy.
• Heres what you should do now (and what you
  really need to be aware of before going ahead and
  cancelling your IVA for good).

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• Why you may be unhappy with your IVA
• There are many reasons why you may not be happy
  with your IVA, including, but limited to, the
  following situations
• Your circumstances have changed such as where
  your income has fallen or expenses have
  increased, and you can no longer afford your
  repayments. In this instance you should speak
  with your IVA provider as soon as possible, as
  they may be able to re-negotiate the IVA
  repayment plan.
• You may have come to a late decision that an IVA
  isnt the most suitable debt solution for your
  needs in this case its important to have an
  alternative plan to action following the
  cancellation of your IVA.
• You might be unhappy with your IVA provider in
  this instance you can either transfer your IVA to
  another provider, or you can cancel it and start
  afresh.

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• How to cancel your IVA
• If youve thoroughly researched your options and
  have spoken with your IVA provider, cancelling
  your IVA is relatively straightforward.
• First, you will cancel your monthly IVA payment
  by asking your bank to cancel the standing order
  (or you may be able to do this with your
  telephone or online banking).
• Second, you should confirm that you want to
  cancel the IVA in writing sending this either
  by post or by email to your IVA provider. Theyll
  then begin a process known as failing the IVA
  arrangement.
• Once your IVA has failed, youll receive a
  written notification. At this point, as youre no
  longer using an IVA, you can expect your details
  to be removed from the Insolvency Register.

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• An IVA typically takes around three months to
  fail (this usually occurs after three monthly
  repayments have been missed). Over this time
  period you will still enjoy the protection from
  your creditors that an IVA provides.

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• Cancelling your IVA key questions
• What happens to the money that Ive paid into an
  IVA after Ive cancelled it?
• Following the cancellation of your IVA, your
  Independent Provider will likely take their fees
  and costs from the balance youve paid so far.
  Following this, any money that remains will be
  sent to your creditors.
• Unless youre a significant way into your IVA,
  youll likely have considerable balances left to
  pay for which youll be 100 liable.

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• If I cancel my IVA, will I have to go bankrupt?
• Many IVA users are concerned that cancelling an
  IVA automatically means that theyll be forced
  into bankruptcy. However this is a relatively
  rare situation, and usually creditors have very
  little to gain from this manoeuvre.
• Its far more common for creditors to begin
  their collection processes again such as using
  a debt collector or taking you to court.

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• There is a single exception to this however, and
  thats with debts owing to HMRC. In this
  instance, you may have had to adhere to terms in
  the IVA that youll meet certain obligations,
  otherwise HMRC will petition for your bankruptcy.
  
• If a HMRC debt has been included in your IVA,
  check the terms of your IVA and seek suitable
  independent advice.
• That said, for some people bankruptcy may be the
  most sensible and suitable debt solution.

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Thank You

• National Debt Help
• Beckwith House,
• 1 Wellington Road North,
• Stockport, SK4 1AF
• https//www.national-debt-help.co.uk