www.iva.co.uk

Hi

My husband and I have an IVA with Debt Free Direct since May 2006. We have found them to be completely useless and lazy and now that I am 10 weeks pregnant I approached them asking for a Variation as I was unemployed up until last week and I am earning less, with the baby coming, increase in bills etc I asked them to do a variation. They have come back to me today to say 'No' as they did one in May 2008 after we fell into a Notice of Breach. My husband and I can't afford to pay them their £478 a month (it has always been £478 a month from day one). Bankruptcy is not an option as my husband is an Accountant and could lose his livelihood.
My question is, Can we disband our IVA and liaise directly with our 4 Creditors without consequences? We feel we would fair better without our IVA.

Thanks

If you cannot afford to make the payments,then your IVA will fail and you will be back to square one so would be able to liaise with your creditors, but you would probably find that all interest would go back on and it would take you years to clear.

Are you still with DFD? I thought all their cases had been transferred to other companies?

If the IVA fails, you could look into doing a second one on more manageable terms, but this would depend on a number of things. You would need to come up with very good reasons as to why IVA 2 should work when 1 failed. For it to happen so shortly after a variation frankly won't help.

You could also talk direct to your creditors, or you could do a DMP.

As Kallis said, effectively you are back at square one, so it will pay you to have a game-plan before the IVA goes pear-shaped. The creditors might deal, or you might get a free-for-all.

To get a fuller picture:

Are you homeowners?
What is the total debt and how is it split between you?
What do you do for a living?

Thanks

Ian