www.iva.co.uk

Hello,
I am just coming up to the end of my second year in an IVA. Throughout my first year, I was employed full time at a supermarket and everything was fine. The second year was a little different, I had to leave that job to help support family, and also to try and start my own business.

My business is flourishing, but I am so unhappy with my personal life. I feel locked down and struggle to think of things positively, all because of the way I look at the IVA.

I've been researching what I can do, and I feel failing the IVA may be the best option, and agreeing repayment plans for my debts. My debt totalled around £6500, and I am paying £100 a month right now.

I feel I would be able to stand on my own two feet and really take control of my finances - I've had to mature to do the business and now feel I'm in the right frame of mind to do so.

I'm just unsure what to do next. Any advice and guidance would be greatly appreciated.

Thanks in advance!

Hi and welcome,

Sorry you feel so stressed. If your figures are correct then £6.5k is not a lot of money for an IVA. Are you sure it is an IVA and not a DMP? Which company are you with?

If it is an IVA and you let it fail you will be back to square one with your creditors and they will probably put back on all the interest that has been frozen so you will end up paying more.

The IVA gives you a degree of protection you will lose if you allow it to fail. Creditors might well not agree to your proposals and can take recovery action, if they deem it worthwhile. In any event your credit files are shot for the next few years. They will also, as mentioned above, add back on lost interest and possibly charges and your debt will have increased over the term of the IVA so far.

You say you had to mature for your business and now feel you can take control of your finances ... surely using the IVA to correct past mistakes and the protection it provides IS taking control ---- use the IVA to your advantage and don't let it use you!

The problem is an iva at this stage of a business can be a totally negative barrier.

I would say speak to your accountant, see what you can afford to withdraw and see if coming out of the iva is financially more viable.

6.5k is not a lot and there have been too many cases recently where people have gone into an iva but their financial situation soon after.

Irrespective your credit history is trashed.

Speak to your Supervisor - if you are struggling to meet your payments then they might be able to either use their discretion or call a variation meeting to reduce them in line with your reduced net income.

Failing the IVA is not recommend per Foggys comments above. This will likely make things worse.

Why don't you try to lend of friends and put in a full and final offer we were in our iva for 14 months and then put in a full anf final offer our debt was £47000 we paid back £8000 and then put in a full and final offer for £6300 and it was accepted we have just received our certificate and are loving life debt free.

Hope the above has given you some good advice. The protection the IVA gives you over creditors is valuable. A full and final if possible may be an option, like others say have a chat with your IP to find a way forward. All the best.