Hello all, I have plucked up the courage to speak to Debt Free Direct, who I have to say were helpful, although did not inspire me with confidence. I know i am in breach if my IVA by having an overdraft on my bank account, but i am in a position where i now cannot do without it.
They will seek a variation from the creditors (i dont think they will agree), and help where possible. I asked what would happen if they did not agree and we could not survive without the O/D, the question was avoided.
All i want is someone to be good enough and be honest and tell me what will happen in the worse case scenario
I'm so glad you spoke to the russell. You should speak to your IP directly, he/she will be able to advise you much better than the call staff. Good luck and I hope the variation goes through for you.
If the IVA payments are affordable there should be no need for an overdraft. If creditors agree to forgive the breach and the new creditor agrees to be bound, will you be able to complete the IVA operating a non facility account?
andydavie wrote:
Hi
Worst case scenario is that your IVA will fail and you will be back to square one.
How much is the OD for ?
Regards
Hi, the overdraft is for £550.00, and has been used over the last 4 or so months especially as i work in sales, and my commission has dropped as sales have dropped.
Excuse my lack of knowledge, if an IVA Fails what is square one for me?
Viki.W wrote:
I'm so glad you spoke to the russell. You should speak to your IP directly, he/she will be able to advise you much better than the call staff. Good luck and I hope the variation goes through for you.
Thank you, i did ask to speak to Alex Twitchin but they told me i couldn't and had to go through call centre staff!!!! Although I have not had the beating I was expecting from Debt Free Direct, I am still worried about the overall outcome.
Hey russell, you will be back dealing with your creditors again, in which case you could choose a debt management plan or bankruptcy. Let's hope it doesn't come to that and you can sort out your IVA.
A post-IVA debt cannot be bound under the terms of the IVA. I would be concerned that your IP will not speak to you directly on this - I would insist that either he or a senior member of his team does so, as you do need some support on this, and you can always e-mail him directly.
It depends on creditors and how much money was paid into the 'pot'. Creditors may wish the supervisor to petition for your bankruptcy or they ask for the arrangement to be failed and any funds on hand distributed. This would have the effect of putting you in the position you were in before the IVA began with the debts outstanding and creditors able to pursue for their money. You could then propose a new IVA, petition for bankruptcy or enter a DMP.
Given that you work in sales where the income is erratic you could request that your supervisor review your payments on an annual basis rather than have a set payment each month. This would allow you to make higher or lower payments depending on what type of a month you had and remove the need for an overdraft facility.
Well done for making the call. If they decide to fail your IVA then creditors are free to persue you for the debt as they did before the IVA started, so back to square one in the sense of being chased again. You could persue the bankruptcy route and end the debts for once and all. It really depends on your individual circumstances on which way you want things to go. When everything is said and done, your IVA company DFD, will earn from your IVA without it they wont, so its in their interests to want to help you... however, its ultimately up to the creditors to agree or not to the changes. It seems that you need to find a middle way through as it doesnt look to me like your allowances were enough to manage on or they couldnt allow for the steep rises in everything. I dont quite know how you would get on with the bank you have the overdraft with as they would have a right to offset the amount you owe on the overdraft. I am not an expert, just a debtor like you. You may have to start again with another bank, I am certain that you would not be allowed to keep the overdraft you have now.
So all things considered, you must make the decision about whether or not you want the IVA to continue, if that is a possiblity. Or if you would rather it end and persue the bankruptcy route. Then its really up to DFD to help you to sort it all out and finally for the creditors to accept the changes.
I hope this helps, if I have made an error I am sure one of the professional experts will correct me.
MelanieGiles wrote:
A post-IVA debt cannot be bound under the terms of the IVA. I would be concerned that your IP will not speak to you directly on this - I would insist that either he or a senior member of his team does so, as you do need some support on this, and you can always e-mail him directly.
Afternoon Melanie,
Excuse me for my lack of knowledge on all of this, when you refer to a post IVA debt do you mean the overdraft ? I have asked for the email for alex twitchin twice and they keep referring me to their customer care email address, they will then pass it on.
I assumed if an IVA failed it meant immediate bankruptcy which is my one worst nightmare and fear, losing the house is something that sticks with me. Is my house ever in jepoardy, especially as i have never been in arrears on my mortgage, secured loan and IVA?
I agree with Andy - this is an issue which can easily be dealt with, using some common sense by all parties. Everyone is allowed to make one mistake, so long as it can be rectified and learned from.
andydavie wrote:
Hi
I am sure that a £550 post IVA debt will not fail the IVA.Are you able to keep up with you IVA payments and chip away at the overdraft ?
Hi Andy,
Yes is the answer to that, i have never been in arrears on the IVA, Mortgage or secured loan. The overdraft has onece been used to its full extent, on other occassions by maybe £50.00. As posted previously i have a fear of being made B/R and losing the house
MelanieGiles wrote:
I agree with Andy - this is an issue which can easily be dealt with, using some common sense by all parties. Everyone is allowed to make one mistake, so long as it can be rectified and learned from.
Thank you all so much and thank you Melanie, I really want to do what I can to make things right, but need to be able to support my family to a degree. I do not know what else DFD will be able to propose, but I am trying everything to reduce bills per month
