Hi If you have a failed IVA

[charlotten1978]

Hi

If you have a failed IVA, which failed in June 2008 after approx 2 years, without bankruptcy consequences, and no monies paid to any of the Creditors during the IVA as any monies paid went straight to the IP for his fees, do any debts from that IVA become Statute Barred?
We have a debt from 2003/2004 that was included in the failed IVA and the debt collectors want paying. This debt has not paid on ever and I wonder if it's Statute Barred even though the IVA failed?

[Pandy]

You paid for 2 years and no monies were paid to creditors, something doesn't sound right there which firm were you with. I would of thought something would have been paid after 2 years

[ginger3232]

Debt only become statue barred after 5/6 years - no contact has to made in this period, if contact is made either writing/payment, the date resets again!. - all your creditors would have been contacted /voted and entered the IVA.

Statue barred does NOT write off the money - just make the recovery difficult for creditors.

When you IVA was set up IP etc would have been agreed by the creditors.

So depending on how much you have paid to date - check with your proposals it will detail charges etc.

[charlotten1978]

Hi Pandy

It's Debt Free Direct. I was told by the IP after he failed the IVA that no monies had been paid to our creditors as the £5000 in the pot was to pay his fees.

Hi Ginger

Thank you for replying, I am very grateful but your comments don't answer question. I am aware of the rules surrounding Statute Barred debts (I was told by the National Debt Line and Insolvency Helpline that SB debts have to written off).

What I want to know is that as SB rule regarding debts are only voided once you make a payment, as no payment was ever made to this creditor at any stage, even via the IVA, then is the debt SB'd?

x

[ginger3232]

The creditors would have been informed of the failed IVA -hence communication- it does not have to be a payment

One of the another things a creditor can do - is seek a court order(CCJ) - which changes the status of debt


http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm28384.htm

http://www.nationaldebtline.co.uk/engla ... tation_act

[plasticdaft]

I would have thought that the ip was in touch with creditors at the date the iva failed so statute barring would be after 5/6 years from this date. Have you not spoken to creditors about the debt in the hope it would disappear? It rarely does you any favours to hide away.

Paul

[charlotten1978]

Hi Plasticdaft

DFD did send letters out to the creditors in question advising them the IVA had failed but I was informed by someone at another Debt Management Company that the debt was Statute Barred from the date of default and even though the debt was in the IVA as it wasn't paid on then it's not enforceable after 6 years.
So this debt in question was defaulted in 2004 ish I think and the IVA was opened in January 2006 and filed at the Court in June 2006.
The IVA was failed in June 2008. As no monies were paid to the creditor either by me or via the IVA this chap seemed to think that the debt 'wasn't officially acknowledged'. He did go on say that the IVA company 'acknowledged the debt' and 'not me'.
I am so confused!

[herbekj]

If the debt was included in January 2006 Court Case for the IVA then that is an acknowledgement of the debt, payment is irrelevant, therefore it would become statute barred after 6 years from that date if you have made no further communication to the creditor about the debt but you could argue that the real start date for the 6 year statute barred starts after the IVA fail date of 2008, making that 2014 because up until that date you had legally acknowledged that debt in the IVA.

[charlotten1978]

Hi Herbeckj

Thank you for your reply. Obviously your comments have upset me! because I am 9 months pregnant, work part time and have a 2 year old. My husband lost his job in December and is working temporarily for a company who have told him they are dispensing of him in August. We just cannot afford to pay anymore debts. £8000 added to the £2000 we owe now is just not something I can forsee doing easily. I really thought we had a hand on these blasted debts but Fairfax Solicitors, the people who hold the debt are vile and had me in tears today. I ended up in the Hospital as I was having pains and my Consultant was furious.
I am not sure where to go from here. I truly hope that someone who is IVA informed, like an IP or Expert on the subject can confirm and get back to me. The likelihood is even thought the IVA failed I was told I can redo another one. I would rather not as I find IVA's to restrictive.

[herbekj]

I'm sorry for any personal distress caused, I have simply answered to the question you posted.

Based on your situation and pregnancy, any debt becomes second to your personal circumstances. I am sure if you contact some of good firms on the forum they can give some specific advise for your situation as in this instance creditors need to take a step backward.

[charlotten1978]

Hi Herbekj

Don't be silly. You didn't upset me really. You just confirmed what I already knew! It's my own fault for getting into debt in the first place.
Tonight I made contact with DFD and they have offered to help me again. I am to gather all the info over the weekend and they can see what they can do. *sigh of relief*.

[ginger3232]

Maybe if you speak to a few companies - you get a idea of which way to go - Also the CAB.

Last think you need it debt collector threatening.

Listen - we all made mistakes - otherwise none of us would be here on the forum [:D]

We dont know the amount of debt / your assets / etc - but the companies will go through this with you - and wether its DMP/IVA or bankruptcy that are the better option for you.

Either way - let the forum know how you doing - and use it for both knowledge /understanding/ or just a good whinge.

Best Wishes [:)]

[charlotten1978]

Hi Ginger

Thanks! DFD were very good before. I will always be grateful that our IP failed our IVA and didn't make us bankrupt. They have said they will call next week. I am so upset. I have discussed this with my husband tonight and he said that he will support any decision I make on our behalf. The last time we had an IVA we nearly broke up over the stress but we are stronger now. More mature and more aware.
I just want Fairfax to leave us alone. The chap I spoke too as out and out rude and vile. He wouldn't even listen to me, talking all over him etc. I just can't understand how he could behave like that.
In truth the debts came about last time because I wouldn't work. I wanted to be a student (got nowhere!) and since I had my first child I have been working weekends for the NHS for two years. This is the longest time I have ever held a job! I was that stupid.
Now I am 100% dedicated to sorting this out to show my girls (my baby is another girl!) that you must repay your debts.

[ginger3232]

Charlotten - Just take a few days - look at all you options including Bankruptcy (if your husband income is due to stop/change) you may find a 5 year commitement to a IVA difficult.

Personally i have spent all my working Life in the NHS - and its never to late to start to study - just life throws things in the way.

[Broke of London]

Hi Charlotte - we see a fair few posters on here who've failed their ivas and then bury their heads in the sand hoping creditors will stay away long enough for the debts to become statute barred. And it causes so much distress when they rear their ugly heads. Good on you for taking responsibility again so quickly...I imagine it is quite something to get your head round. Especially with baby brain LOL! xx