Can they do this?

[tumbleweeddj]

Hi

I am nearly 2 years into an IVA with Debt Free Direct. Last February I lost my job and was out of work for 3 months. I informed Debt Free of the situation straight away and was told to find a job as soon as possible and to resume making payments. I resumed making payments and didin't hear anything more from them. I then contacted them at the start of January and they said that I was in breech of my IVA and they's sent me out a letter (which I never received) they said that they would send another 1 again I didn't receive it so I called them back a few weeks later and they said that because I hadnt replyed to the letter they were going to make me bankrupt. The 1st breech letter was sent out in November and I had been making payments for 7 months before they decided I was in breech. Also they said that my payments went up by £20 16 months into the IVA which they didn't make me aware of and said it was in my original agreement. There was no reminder and I am always contacting them. When I spoke to them in early January they said that they couldn't make me bankrupt if the IVA failed, the debt would go back to my creditors and I would have to deal with them, is this correct? It seems that Debt Free are only interested in making money out of their customers and have little interst in actually helping anyone.

Any help and advice would be gratefully received.

Thanks

[MelanieGiles]

Hi there Tumbleweed and welcome to the forum

Technically I suppost that your IPs are correct if you have missed more than three payments - but they could and should have highlighted this at an earlier stage.

Have you tried to make them an offer to deal with the missed payments - such as extending the term of the arrangement or paying a slightly higher amount now to deal with the arrears. This might mean that they have to call a variation meeting of your creditors, but at least it would save the IVA?

Try talking to your IP directly on this point, because I am sure that they would not want to see the IVA failing.

[Adam Davies]

Hi
Another case to highlight the importance of getting replies in writing or email rather than just over the phone,especially in large providers.
Tumbleweed speak with your IP with a view to getting your IVA back on track
Keep this forum posted please

[tumbleweeddj]

Hi

Thanks for the replies. Debt free have now informed me that they are pettioning for my bankrupcy. They said that because I missed the pyments and moved house without informingt them they had no other choice but to file for my bankrupcy. The hearing is set for 10th April. What do I do now???

[abc]

I would believe that your IVA has failed and that DFD have issued you with a certificate of failure which would have also be sent to your creditors.

I have heard that DFD sometimes withdraw the certificate of failure in certain cases. Therefore, speak to your IP and ask if this can be done and then offer creditors a variation as Melanine mentioned above.

[MelanieGiles]

I would have no problem in withdrawing a certificate of non-compliance or a bankruptcy petition if I felt that my client were able to make up the arrears or come up with a good offer? Creditors are unlikely to get anything if the bankruptcy continues, unless you have assets which would vest in the Trustee.

[tumbleweeddj]

the only asset I now have is a car that is worth around £2500. DFD said that my car wouldn't be taken off me, is this right? I could transfer it into my wife's name but I'm not sure if this will act against me?

[MelanieGiles]

If they mean will it be taken from you in bankruptcy, this is unlikely at that value. You should not transfer any assets into your wife's name whilst there is a bankruptcy petition pending. This would be treated as a disposition of an asset, which is a bankruptcy offence.

[Oliver]

Although the Official Receiver has the right to take possession of your car, if you can show that you need the car for work etc... I would think that they would be unlikely to be overly interested in a car of this value.

Transferring the car into your wife's name will not help matters as this will be reclaimable by the court anyway (includes any asset transfers under value during the last 5 years).

[MelanieGiles]

If they mean will it be taken from you in bankruptcy, this is unlikely at that value. You should not transfer any assets into your wife's name whilst there is a bankruptcy petition pending. This would be treated as a disposition of an asset, which is a bankruptcy offence.

[tumbleweeddj]

thanks for the advice. DFD don't know my new address should I give it to them?

[MelanieGiles]

Yes you have a duty to keep your IP informed of all changes of circumstances, including changes of address.