It is not possible to change your IVA Company. However there are various different options you can consider if you are unhappy.
Included in this article:
- If you are unhappy can you just stop your IVA?
- Can you start a new IVA with a different company?
- Can you change to a different debt solution?
Unhappy with your IVA Company? Give us a call (0800 077 6180) or complete the form below to discuss your options
If you are unhappy can you just stop your IVA?
Once you have started an IVA it is not possible for you to change the company managing it.
That said, if you’re unhappy and feel you simply can’t continue with the Arrangement, you can stop it and do something else.
An IVA can be stopped at any time. You just need to let it fail. It is possible to do this by cancelling your monthly payments.
You should tell your IVA company that you want them to terminate the agreement. They may try to change your mind, but ultimately there is nothing they can do to stop you.
Remember, a considerable amount of your debt is likely to remain outstanding. You will therefore need to have a plan in place for managing it going forward.
It is extremely unlikely that your IVA company will make you bankrupt (unless this was written into your IVA agreement as a requirement). They will probably leave it up to you to decide what to do next.
Struggling to get your head round all of this? We can help. Call us (0800 077 6180) or complete the form below. The advice is free and confidential.
Can you start a new IVA with a different Company?
After your old Arrangement has failed, you may consider starting a new IVA. There is nothing to stop you doing this if you wish.
You can pick a different IVA company that you feel more comfortable with. They will take a fresh look at your situation and can draft a new proposal that is better suited to you.
You should not be concerned that your creditors will not accept a second IVA proposal from you. In general they will as long as the new proposal is reasonable and the reason for any changes properly explained.
Starting a new IVA will mean starting your payments again from month one. All the payments you made previously will be lost.
Can you change to a different debt solution?
Starting a new IVA with a different company may not the most suitable solution for you. Before making a decision, you should also consider either a debt management plan or going bankrupt.
If you are a home owner, a debt management plan might be a sensible option. This will give you more flexibility than an IVA. However, given all the money you owe has to be repaid, it could take a long time to become debt free.
Where you do not own a property, going bankrupt could be an ideal option. If your income is low or you are on benefits, you make not have to make any further payments towards your debts.
If you do have a surplus income, you will only have to make monthly payments for 3 years.
However, before deciding to go bankrupt, you need to consider other implications such as what happens to you car and pension.
If you want to change your IVA company and need advice about what to do, give us a call (0800 077 6180) or complete the form below. It’s free and confidential.
Arrange a call with an IVA Expert
Privacy Policy |
Hi
I am having real issues with my iva company. I went on a payment break in march due to loosing my job. I then found a temp position and continued with the break. I have followed their instruction everytime even at the review stage.
I have now found a new work position but salary a lot less than i was on. I told the company that i cannot continue the same amount. Which i then had to send more proof. Whilst this was all going on they took a payment for the original amount which hasnt been agreed by me as i cannot afford to live. I have been trying to get this back and they will not refund stating that i am no longer on a break.
I have sent several emails and made numerous calls and feel more stressed than ever about this. They never return calls or emails. I am always left hanging on. Due to their error i now have £2.00 in my bank till the 25th of this month. Which isnt acceptable. I really want to change companies or file for bankruptcy.
Hi Nicci
It sounds to me as though the IVA you are currently on is no longer suitable. If you feel that you are unable to resolve the issues with your current company then as highlighted above you cannot change your IVA provider half way through. As such you have two options:
1. Stop your IVA and start another with a different IVA company. This might be suitable if you can still afford to pay a reasonable amount towards your debt each month going forward. Generally speaking it would need to be a min of £100/mth. This would be a sensible option if you own a property which might be at risk if you go bankrupt.
2. Stop your IVA and chose a different debt solution. You could certainly go bankrupt if you wish. If you are not a home owner and cannot really afford to make any further payments towards your debts this could be an ideal solution. If you owe less than £20,000 you could also consider a Debt Relief Order.
I have had my IVA for 2.5 years and to be honest they are not very good. Can I stop paying my IVA then get in touch myself with the my debtors to arrange a payment plan through them directly ?
Hi Paul
As highlighted in the article above you can certainly cancel your IVA and pay your creditors the remaining balances if you want.
You simply stop making your IVA payments. Then contact your IVA company and tell them you want them to fail the arrangement. You then need to wait for a letter from the company confirming the Arrangement has failed. You can then approach your creditors yourself and negotiate repayment with them directly.
Note: If you owe money to HMRC you should take advice before failing your IVA as this could result in them forcing you to go bankrupt.
It is important to understand that some (possibly all) of the money you have paid into your IVA will be legitimately taken by your IVA company to cover their costs and fees. As such the amounts you owe to your debts may well be similar the the amounts owed when you started the Arrangement.
Hi
We have been in iva for 3 years now we are home owners, oir 3 year review was due in oct we sent everything they needed, we then received a letter saying they wanted them again in dec we did this then today have received a letter saying we are breaching the contract we rang them and our emails are sat in there inbox…. So no they are breaching the contract not us, every year we have issues…
What can we do because this is more stressful than the debt we were in in the first place all we get is will call you back and they never do. The letter states we have 7days,
Hi Tony
Sorry to hear about your situation. It seems as though your IVA Company’s processes are not at all good. But unfortunately the only way forward with this is to resolve the issue with them direct.
All I can suggest is you send a written letter addressed to the insolvency practitioner responsible for your case outlining your concerns. Tell them that unless it is resolved asap you will escalate a complaint to their regulator. Sometime this is enough to get someone their end to take some action and get things sorted.