my daughter has failed her iva due to birth of her baby and unemployment a creditor is now using a debt collection co and has said they intend to take her to court it is a substantial amount what should she do ?
Hi and welcome
The collection agency will prefer a monthly payment,as long as it is affordable to your daughter,rather than the cost of going to court.Try to come to an agreement with them
Has your daughter looked into bankruptcy or as an alternative a Debt Management Plan ?
A lot of creditors threaten court action, since your daughter has a failed IVA, has she offered a payment plan to address the debt owed? How much in total does she owe? Does she have any assets? The reason I ask is that she may want to consider BR to end this for her, if the amount is too substantial to consider a debt repayment plan. Many of the calls and letters are threats, if you daughter can offer an affordable payment each month (can be as little as £1 per month) its unlikely the courts would grant a CCj as she is doing all she can.
When an IVA has failed - bankruptcy proceedings are usually the better option, providing that she has no assets which would be at risk under those proceedings.
