Hypothetical question

[tarasue]

I having paid into to an IVA for nearly 4 years now and have currently about £6k left to pay, I will probably have to go into a 6th year as I a have equity, however if I stop paying after 5 years and avoid creditors for a year does this clear the remaining debt as a debt only last 6 years? This is a hypothetical question by the way I was just curious!

[Foggy]

Basically, No. A debt will last for as long as it remains unpaid.

A debt becomes "statute barred" if it is not acknowledged for 6 years. This means it cannot be enforced but still exists. Whilst the IVA runs it has been acknowledged, so the 6 years will start from when you allow the IVA to fail.

Failure of the IVA will result in your creditors adding back all unpaid interest and late payment charges over the last 5 years and, basically, flush everything you have already paid down the toilet.

They will then be able to pursue you by any means they think fit. Ignoring them will not make the problem go away. They have your current address so can serve notices or send court collectors, as well as securing loans against your property.

[tarasue]

Thanks Foggy, was just curious,won't be too long now anyway and will be a weight lifted! x

[luluj]

Even if a further 12 months is payable ...look back at how far you have come and the money you have saved in interest alone.