Hi, would like some advice on coming out of an IVA early. As my financial circumstances have improved, I feel I'm in a position where I no longer need to be in one. My monthly IVA payment is now far more that what my creditors were asking for each month previously. Is it possible to come out of an IVA early and what are the consequences?
I've just completed 3 years with another 4 to go. I know that payments go up as per your earnings however I'm paying much more per month than I was to creditors before the IVA. What will happen if I terminate my IVA? Can I revert back to paying my creditors myself?
I realise that but on a monthly basis I will be better off and back in control of my own money. I'm not against IVA's but I seem to now be in a worse situation than before. What are the consequence if I come out? What happens to the money I've already paid in?
The greater part of what you have paid in will be eaten up by fees. The rest will easily be swamped by the new interest your creditors will add on. So, in short, the last three years will go down the tubes.
Yes, your payments might be smaller when you come out, but you will never be shot of debt. At least now you have an "end date".
If your repayments are unaffordable speak to your IP to see if they will review your income and expenditure. Payments should not make life impossible ( though not a walk in the park either!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
