If you can’t make payments to your IVA and your creditors won’t accept lower payments, your IVA will fail.
This means you will still have all your debts and your creditors can take action against you for those debts.
You will still have to pay your insolvency practitioner their fees for the work they have done so far.
Can I legally cancel my IVA?
Cancelling your individual voluntary arrangement
Talk to your insolvency practitioner straight away – they might be able to change your regular payments. If you still want to cancel your IVA, you can – but you’ll still have to deal with your debts, and you could be made bankrupt.
How does an IVA affect your life?
An IVA should be carefully considered because of the possible consequences for your personal, professional and financial life. Your credit rating will be affected for six years, starting from the date the arrangement is agreed. You’ll have to keep to a budget for the full term of your IVA, usually 60 or 72 months.
Can an IVA last 7 years?
An IVA typically lasts for 5 years (60 months), although there is actually no set length written into the Insolvency Act 1986. In some circumstances, if you are able to offer your creditors a lump sum in settlement of your debts, an IVA can last for less than 5 years.