You are entitled to leave an IVA just as you were entitled to enter into it in the first place. However, these things are quick and easy to sign up to but not quite so easy to exit. There is a process that will need to be applied in order for the IVA to be terminated and for you to receive a letter of termination from your IVA provider.
You would need to write a letter to the IVA company advising of your intentions, as the court will usually expect sight of an IVA Letter of Termination. You will receive a ‘Breach of Terms’ letter after missing three payments and if you ignore this, a further letter terminating the agreement will be received 6-8 weeks later. If you exit an IVA and don’t go bankrupt, your creditors will start contacting you all over again, and your level of debt will return to what it was prior to entering the IVA.
A lot of people find it hard to get what they need from some IVA companies that simply have no interest in giving the failed IVAs the service they desperately need. All we can say is that you have to push hard sometimes for what you want and need. keep pushing, send confirmation of cancellation letters by recorded or registered mail. They have a habit of losing things and subsequently a lot of time goes by and you don’t hear anything.
Although IVAs are geared to collect payments from you, a failed IVA may result in you being placed in ‘no mans land’, unless the decision is taken to enter into bankruptcy. If you don’t, your creditors may start pursuing you again. We have taken well over 3,600 out of IVAs and into the protection of bankruptcy, so call us if you have any questions.
Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.