Fell into arrears due to reduction in benefits while awaiting Personal Independence Payment claim which will take 21 to 26 weeks.Adviced by case officer from IVA firm to stop payments and go for a creditors meeting.This is to see if they will accept the £4200 already paid of my £6000 payment over five years.I was on benefits when claim started and think I may have originally in 2010 been give the wrong advice and should have been told about Debt relief order. I am worried as IVA have now failed the IVA with them what will happen with creditors. When the letter of failure came I was in hospital so I did not reply. Letter dated 16 June but they terminated the IVA on 13th May. I spoke to the case officer on 22 May and she said about the creditors meeting but now I have received the request they are putting before the creditors for the £4200 to be taken as final payment and if rejected the creditors can take whatever action they deem necessary I am wondering if I should borrow the money and see if I can continue payments. Would this be allowed as they say IVA has failed.Thank you
This sounds to be a rather confused situation --- if the IVA has failed why are the still holding a creditors meeting ?
As for the DRO --- they are only e relatively new development and might not have been available when you first sought advice. In any event you were deemed to have in excess of £50 disposable income (regardless of the source) so would not have qualified.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Very muddled - but if they still think that they can get a variation of terms for you based on payments to date in full and final settlement, then I would let them crack on.
DRO's were certainly available in 2010, as they were introduced from April 2009 onwards. How much did you owe to your creditors when you entered into the IVA, and despite you paying £100 per month, would your disposable income realistically have been £100 at the time you entered into the IVA?
