Debt moved to Evershields

[polar]

Hi all,

I have approx 8 months left on my IVA. I am a couple of payments behind above my allowed quota but hopefully I won't be made Bankrupt.

1) My question is that I have just received a letter saying one of my debts had been sold to Evershields.

Is this normal at this late stage of the IVA.

2) If you have to have a creditors meeting towards the end of an IVA for missed payments, would it be benifical to make the person Bankrupt so they can get another 2-3 years worth of payments or would they just allow another couple of months to catch up.

I have 8 months to go and I am 4 payments behind...My IP is very understanding

[Viki.W]

Hey Polar, I think it's quite normal for your debt to be sold. I thought you would have defaulted as you have missed more than 3 payments but it would be my guess that you will be able to make them up at the end rather than the creditors making you BR as you've come so far. Please hang in there and I'm sure Melanie will be along to advise you. X

[polar]

My IVA states that if i miss 2 payments then I will have defaulted. I have missed 4 but I am trying to make them up before my final annual review in December, after that I will have a couple of months left to make up any payments I have missed (Roll on March 09..the end of my IVA)

I would think at this late stage, to make me bankrupt would not be beneficial...but the creditors might see this as a way to make some more money...I don't know how the creditors think

[plasticdaft]

I wouldnt see any benefit to making you BR at this late stage,you may have to run on your IVA for a couple of months to catch up your payments.

[kallis3]

I would have thought that if they were going to default you, they would have done it by now.

Hang in there, you've not got long to go now.

[polar]

I am actually 3.5 payments behind as I have manged to pay a little extra every month...every little counts.

[MelanieGiles]

It is perfectly normal for a debt to be sold at this stage, and nothing for you to worry about. Your IP will update their records, and ensure that dividend payments are now paid to the purchaser.

To address the 4 missed payments, I am sure that your IP will simply extend the term of the IVA to ensure that a full repayment is effected to creditors. There would be absolutely no point in anyone failing your IVA at this stage.

[polar]

If my IP extends the IVA by an extra month, does he have to call a creditors meeting or can he simply put it forward at this late stage

[MelanieGiles]

Technically he would need to call a meeting, but if it was me I would probably not bother.

[polar]

How would you write the end of year report if the person was behind by one extra payment?

[MelanieGiles]

I would say that there is one more payment to go. Creditors are interested in getting their money repaid, and are fed up by the amount of variation reports there are currently in circulation. Common sense must prevail somewhere along the line.

[polar]

I always though If the creditors saw one payment to be made up they would look at Bankruptcy as I would have already missed 2 payments (My agreement only allows me to miss 2 payments).

Thanks for advice

[MelanieGiles]

That would hardly be commercial on their part!