Cancelling an IVA
Due to its formal nature an IVA can't simply be cancelled simply because you change your mind, however, there are procedures that allow someone to bring their IVA to a premature close.
People's circumstances can change at any time and all it takes is a change in circumstances that's large enough for an IVA to become unviable.
Consider Your Options First
Before you decide to cancel your IVA payments, you need to consider all your options and, invariably this means talking to your IP.
You need to understand the choices you face, whilst considering the 'fall-out' that may follow from terminating your IVA early.
Payment breaks
If your IVA is in trouble due to affordability, your IP might be able to introduce a payment break to assist you in managing the situation.
IVAs with a start date before 1st October 2016 can, with the IVA Supervisor's permission, take a payment break of upto 6 months.
However, since the introduction of the revised IVA Protocol, which came into effect on 1st October 2016, IVAs starting after this date can now apply for a payment break of upto 9 months.
Whilst this might only be a temporary measure, it may be all that's required to help you get over your payment problems and the IVA back on track.
Payment reductions
It's also possible to request a reduction to your monthly contribution if you're struggling to live within your IVA budget.
Cancelling your IVA
Sometimes, however, when there has been a significant change in circumstances, there will be no other choice other than cancelling your IVA.
If this is the case, the best advice is to call your Insolvency Practitioner.
Talk to the IVA supervisor and explain your situation. They will give you the guidance needed to help you complete the formalities and draw a line under your IVA.
Please NoteCancellation of an IVA might result in you being made bankrupt. For more information on this point you should talk to your IP.
