If you are currently using an IVA, but are finding it increasingly hard to make your monthly payments into your IVA, or simply believe that the agreement is ill-suited to your situation, then you might decide that you want to cancel it altogether.

The following page you will explain the steps you would need to take if you desired to cancel your IVA after setting up, as well as elaborating on the potential repercussions of doing so.

I’m struggling to make my IVA payments, should I cancel my arrangement?

If your financial situation worsens whilst you are on an IVA, and it becomes unattainable for you to make your payments, then you need to notify your insolvency practitioner of this immediately.

In certain cases, they might be able to re-negotiate the terms of your IVA with your creditors and secure reduced monthly contributions, until that time that your financial situation picks up.

Alternatively, they might advise you to cancel your agreement altogether and pursue a different solution to your difficulties, though this will only be done if they genuinely believe that your IVA is counterproductive to your situation.

Can I cancel my IVA whilst I am still using it?

You are legally entitled to terminate your IVA agreement at any point whilst you are on it, though you should not pursue this course of action likely. If you are considering opening cancellation proceedings for your IVA, then it is imperative that you discuss the issue with your presiding insolvency practitioner and are given a clear indication of the ramifications of leaving your IVA prematurely.

Remember, your insolvency practitioner can negotiate with your creditors to reduce your payments further or alter your arrangement to suit your circumstances. Whilst there is no certainty that they will succeed with this endeavour, it is nevertheless worth considering before coming to your final decision about whether to stay on an IVA or not.

How to cancel your IVA

If you have taken everything into consideration and firmly believe that using a different course of action to an IVA would be more beneficial for your situation, then you will need to write to your insolnvecy practitioner and convey this stance to them. They will then terminate your IVA agreement and mail you a notice of termination. However, you’ll still be required to:

• Resolve the outstanding balance on your creditor debts.
• Pay your insolvency practitioner their fees for servicing you.

Remember, ensuring that you get into contact with your creditors immediately after the failure of your IVA is vital to ensuring that they do not open up aggressive legal action against you, such as attempting to make you bankrupt.