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Buachaill, Barrister
Category: Law
Satisfied Customers: 12045
Experience:  Barrister 17 years experience
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I am in IVA more than an year. can I change it for debt

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I am in IVA more than an year . can I change it for debt relief order

Hello, and thank you for your question. I am your Expert and I will provide the answer you require.

1. It is possible to change an IVA to a Debt Relief Order. However, there are certain restrictions which might not make it suitable for you. Firstly, you cannot own a property and have a Debt Relief Order. As you are considering purchasing a property, this might make the Debt Relief Order (DRO) unsuitable for you. Secondly, you cannot have a car worth more than £1,000 if you wish to change from an IVA to a DRO. Thirdly, you must have little spare income each more after your expenses, that is less than £50. Again, if you are considering purchasing a property, this would make the DRO not suitable for you. It is true that it is possible if your debts are less than £20,000. However, I would advise you to remain with the IVA and purchase a property rather than change to a DRO.

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3. Be aware that whilst you get your debts written off in a year with a DRO, your IVA has to fail first before you can enter a DRO. So, you have to shop making payments and inform you insolvency practitioner of this. However, the DRO remains on your credit file for six years. An IVA whilst it lasts usually five years will bring your debts to a close.

Buachaill and 2 other Law Specialists are ready to help you
Customer: replied 3 days ago.
Ok thank you very much

4. You are welcome. Best wishes.