hello im waiting for approval of my iva as a last resort before bankruptcy i owe £35000 unsecured the iva proposal is £300 a month for 5 years totaling £18000 However the iva agreement is only offering 26p in the pound to the creditors = £9100 the rest is the fees for the next 5 years. If the iva is agreed can i withdraw from the iva before paying anything in ? I can borrow the £9100 from my parents approach the creditors and pay them ! After all thats what they are expecting and i save on the fees. Dont suppose the iva company will be happy but what can they do. Its my understanding that i have the legal right to withdraw from an iva at anytime ??????????? Any ideas k
Yes you can withdraw from an IVA at anytime, until you have signed to agree to the final chairs meeting. After which you have to default it instead.
However why dont you ask your IVA practitioner to put forward a full and final IVA to your creditors for the £9500 that way its professionaly done and legally binding rather than approaching them yourselves on an informal agreement.
If you can raise this money now, you should be able to offer it as a full and final offer to your creditors. You will have to pay some fees, but not as much.
Speak to your IP.
Otherwise, if you wait until after approval you will have to let the IVA fail before being able to offer any money to your creditors direct. It's a legally binding agreement on both sides and you would have to miss the first three payments.
withdraw from iva ?
Posted - 21 June 2009 : 10:07:22
