If your IVA company has closed, your IVA is not at risk. It will be passed to a different organisation to manage. The money you have already paid in is safe. But what if you are unhappy with the change?
Included in this article:
- What happens if your IVA company has closed?
- Can you choose where your IVA is moved to?
- Options if you are unhappy with your new IVA company
Already in an IVA and need help?
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What happens if your IVA company has closed?
If your IVA company has closed, there is no reason for you to panic. Your agreement will be transferred to a different IVA company who will manage it from now on.
A good example of this was Quality Insolvency Services (QIS) which stopped trading on the 23rd November 2022. As of the 7th Feb 2023, all of the Arrangements that were being supervised by QIS have been transferred to Fresh Start Insolvency Limited.
You should continue making your monthly payments as normal. Don’t cancel. Continue paying with the same reference and into the same account until you are told otherwise by the new company.
If you stop making your payments, your IVA will get into arrears and may be at risk of failing.
The money you have already paid into your Arrangement is protected. It will not be lost and the number of remaining payments on your IVA should not change.
Struggling to get your head round all of this? We can help. Call us (0800 011 4712) or complete the form at the bottom of this page. The advice is free and confidential.
Can you choose where your IVA is moved to?
You don’t have any say in where where your IVA is transferred after your IVA company has closed. You simply have to accept the new company you have been moved to.
This is perfectly legal. There is a clause in your agreement which allows it to be transferred to a different Supervisor if the original company stops trading.
Unfortunately, you are not allowed to choose a different IVA company yourself. This means, you can’t choose to move your IVA somewhere else if you are unhappy with the new company.
This situation can be exceedingly frustrating, particularly if you think the organisation that has taken over your IVA is not doing a good job.
In January 2023, many people who had an IVA with Hanover Insolvency were transferred to Creditfix. They had no say in this at all.
Options if you are unhappy with your new IVA company
After your original IVA company has closed, you may not like the new one you have been transferred to. Perhaps you feel they are not as easy to work with or they are asking you to increase your monthly payment.
As highlighted above, you can’t change your IVA company. However, there are some options.
First, you could cancel your current IVA and start a new one with a different company of your choice. However, the major problem with this is that some (and maybe all) of the money you have already paid will be lost.
Because you will have to begin the whole process again, starting a new IVA may only be appropriate if you have not been in your original plan for that long.
The other option is to stop your IVA and use a different debt solution.
If you are not a home owner, you should think about going bankrupt. Whatever remaining debt you owe will be written off. Any monthly payments you have to make only last for 3 years. If you are struggling you might not have to make any further payments at all.
You could also consider a debt management plan. This might be sensible if you are a home owner or if your income has gone up and you can afford to repay your outstanding debt in less than 5 years.
IVA company closed and unhappy? Give us a call (0800 011 4712) or complete the form below. The advice is free and confidential.