Trying to get out of an IVA

[Gareth_W]

Hi there I'm new to the forum so go easy!

 

I'm now in my 2nd year of my IVA almost into my 3rd in a few months time. Now I recently decided to join Experian just out of curiosity and obviously it does say that my credit is very poor which I accept as normal for some one in an IVA, the weird thing is that the total remaining debt on my "credit" account is total to the following:

 

£550 to Santander (Overdraft)

£68 to Wonga (Payday loan)

£470 Capital One (Credit Card)

£1772 to Creation Consumer Finance (Loan)

 

Now a few years ago before I started my IVA I was in a bad place with my money and ended up looking for help, I spoke with Debt Free Direct who after a consultation over the phone convinced me that the best option for me was to go on an IVA, at the time I didn't mind as my mind was more concerned with just getting my money straight, but after looking at my credit report and seeing how much I have "left" compared to how much my yearly over view report of my IVA states got me confused, in total I only have £2860 left but according to DFD I have over £8000 left.

 

Now after doing some research on this site I have discovered that a lot of IP's charge extortionate amounts for their "services" so my main question is as the title says basically, how do I save my self around £5k, get out of my IVA, and start to see a positive change on my credit report, and advice would be greatly appreciated, and i'm willing to give extra information if required too if I haven't covered everything.

Edited March 6, 2014 by citizenB

[citizenB]

It might be worth your having a word with National Debtline.. How much did you owe prior to the start of the IVA ?

 

Was there any Payment Protection Insurance on the Loan ?

 

I will try and find someone who can advise further.

[sequenci]

Hello there,

 

First things first, it's important to try and figure out just how much debt you are in. Credit files are notorious at giving incorrect information - and also bear in mind that not all creditors report - or some might report to someone other than experian. That said, I wouldn't be surprised if an IVA was mis-sold as over the years mis-selling has been rife. In my view an IVA is likely to be a tangible option where someone has debts of over £15,000, I'm assuming yours was below that figure initially? I don't think it's absolutely wrong to enter in to an IVA for a lesser amount, I just feel that there could be better options elsewhere. An IVA is a declaration of insolvency, so it does have some pretty harsh long-term effects. The potential issue for you now though is that you could well be tied in. If you decide to leave, you would need to 'fail' the IVA unless you can leave by mutual consent. Any fees are likely to still be outstanding, you should refer to the terms of the contract. There is a new Insolvency Service complaints gateway, so if you don't get anywhere with DFD you'll have the potential for further recourse possibly. Here's more info: http://www.bis.gov.uk/insolvency/contact-us/IP-complaints-gateway

 

How much do you pay DFD?