Debt not considered in IVA??

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Post by mrkrabs » Mon Apr 25, 2022 1:35 pm
My wife had an IVA which started in Dec 2016 and was settled in August 2019.

A debt is showing as in Default on her credit report. The loan date is June 2014, and the default is March 2016.

When we have looked into it, this debt was real and did start in 2014 - however it was never mentioned in any of her IVA paperwork.

How can this be? Doesn't an IVA cover all of her debts? Or have I misunderstood something?


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Post by Foggy » Mon Apr 25, 2022 1:52 pm
The IVA covers all debts that were declared by the debtor, which should have been all outstanding debts at the time.

At times debts are overlooked when the IVA is proposed and get added in, if they are small in relation to the declared debts, during the course of the arrangement.

As this debt was defaulted in March 2016, that default, along with the debt, should have disappeared from the credit report in March this year. When did you last check the credit report and how ( there is sometimes a time lag if using the likes of Clearscore or Credit Karma) ?

Also, as long as this debt hasn't been acknowledged since 2016, it should become statute barred at the 6 year mark as well.

I would have a word with the former IP -- it could be that this debt would be considered to have been captured by the IVA after all.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014


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Post by mrkrabs » Mon Apr 25, 2022 2:03 pm
Thanks Foggy

The company are recording the default as May 2018 - even though we have a statement from them showing that the account actually defaulted in March 2016. We have asked them to correct the record.

We haven't had any contact from them - they have never sought to find her current address or phone number.

The only contact we've had has been in the last week when we've been contacting them to find out what it is & figure out whether it was in the IVA - which it looks like it wasn't.
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