Default notice from Creditor

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Bran76
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by Bran76 » Sat May 26, 2018 11:47 am
I had my IVA agreed back in March but only actually got a copy of my Chairman's Report last week (I previously posted about this & I think it was just due to backlogs within the company). Today I received a Default Notice from one of my Creditors (incidently the only one to not vote at the Creditors meeting-I had 100% from those that voted) informing me that I was in breach of contract & they were going to demand full payment & damages. Of course this has totally started me panicking Is this just bully scare tactics at its best as surely now I'm in the IVA I'm protected? Should I respond to the creditor or just inform my IP & get them to deal with it?
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Foggy
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by Foggy » Sat May 26, 2018 12:22 pm
Just a standard default notice ... pass it to your IP. An IVA causes accounts to go into default, some credtors supress the issue of the notices, others don't.
Bran76
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by Bran76 » Sat May 26, 2018 12:31 pm
Thank you. So this is totally normal practice then & I will probably receive more? Just the wording of the letter sent me into panic mode. So legally they can't do anything to you unless the IVA fails & once the IVA is completed they can't then come after you?
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Foggy
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by Foggy » Sat May 26, 2018 12:49 pm
Bran76 wrote:
Thank you. So this is totally normal practice then & I will probably receive more? Just the wording of the letter sent me into panic mode. So legally they can't do anything to you unless the IVA fails & once the IVA is completed they can't then come after you?


As long as they are listed in the IVA they cannot do anything and are bound by the arrangement, whether they voted or not. Between us we had around 20 creditors going in and, from memory, only received two or three default notices ---- but the defaults did start to appear on my credit files. When they do, just make sure they are dated around the start date of the IVA as they will drop off the files 6 years after the default date.
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MerlinL14
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by MerlinL14 » Sat May 26, 2018 1:30 pm
Scary to get in the post after getting your IVA sorted, but it is just a blah blah blah standard letter from one department who doesn't know yet that you are in an IVA. You may even get more! my response was "ah bless" as I filed them in the bin. Don't worry you are covered by the IVA and the creditor has no redress against you.
Bran76
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by Bran76 » Sat May 26, 2018 4:54 pm
What I can't get my head round is they say I have breached the agreement by "being in a form of personal insolvency"-so they are aware of my IVA. But if I'm legally protected in my IVA from any action they may want to take, what is the point of sending the letter??????
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MerlinL14
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by MerlinL14 » Sat May 26, 2018 5:02 pm
Bran76 wrote:
What I can't get my head round is they say I have breached the agreement by "being in a form of personal insolvency"-so they are aware of my IVA. But if I'm legally protected in my IVA from any action they may want to take, what is the point of sending the letter??????

You see this is where your question falls down, you are using logic to dictate what you think they are saying :D . What it boils down to is that the creditors bum has no clue what it's elbow is doing. Someone thinks it is everyone's job to know what is going on, however everyone is too busy doing no-one's job to know what it is they should be doing or who it is they should be communicating with! Which is about as clear as the information you got in the letter from them :shock: :D
Seriously, it's not worth bothering giving it any of your time or worry, just be safe and secure in the knowledge that you are covered from them taking any action in courts.
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Foggy
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by Foggy » Sun Jun 03, 2018 8:51 am
As accurate, in reality, as Merlin's excellent explanation is, they are simply required to issue a default notice, which is probably stored on their computer as a pretty much standard "cut and paste" form. As said previously, some creditors will head these off at the pass or even supress them on their system, but many will not. Makes no odds -- you are protected by the IVA anyway.
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