I have been put in the hands of a debt collection agency

[Tom.1]

Hi everyone,I wonder if one of you could help answer a question or two I have?
Basically I am getting divorced and awaiting my decree absolute may ex has gone into an iva,without informing anyone including her solicitor.
We have a joint loan and overdraft which I alone was servicing,now the bank LTSB has returned my loan payment and issued a letter saying I have defaulted??(despite them being the ones to return the payment) and I have been put in the hands of a debt collection agency,is what LTSB have done right/legal?

Many thanks for your time and consideration Tom

[Shining]

Hi Tom.1 and welcome to the forum, I can't answer your query for which I'm sorry but will keep this bumped up for a professional opinion and I'm sure it won't be long before you get the answer to your question.

[Michael Peoples]

If the loan repayment was rejected there must have been insufficient funds in the joint account. You should look to get yourself new banking facilities in your own name and then concentrate on clearing the debts.

It may be worth speaking to an IP firm for some free advice especially if there are other debts.

[Shining]

Why not take a look at www.iva.com where you will find a list of IP firms and some reviews of these, the professionals who post on forum also come highly recommended and can be contacted via the experts link.

Always take the advice of 2 or 3 companies to gain that all important impartial, case specific advice. x

[Tom.1]

Hi all,
thanks for your replies,I have spoken to a debt managemant consultant who gave me some useful info,the direct debit had already been transfered to my sole account but that didnt stop them returning it
I have contacted LTSB again,this time through their Financial management services,who were helpful,so far as, they at least had advice and information to give,LTSB collection services are worse than useless, seemingly based in another country,I may as well have been talking to one of my socks.
The long and short of it is, however much she pays, they can come to me for the full amount as they will receive nothing for the 1st two yrs of the iva,after that may only get a fraction of the amount outstanding,leaving me to pay off the bulk?? charming eh?
I dont have enough debt to go for an iva,but I will stil be credit blacklisted now through the returning of the loan payment,I need to find out the amount she will be paying off to LTSB and match it or slightly better it in order to make payments that will remove my blacklisting.
So I have looked on the insolvency website and got the details of her iva provider,as its a joint debt I am going to request information on payment details

Tom

[Michael Peoples]

If you can maintain the repayments and clear the arrears it will help your credit rating. However, it also may mean that you end up repaying the debt in full before any or all dividend are paid from the IVA. When you speak to the IVA Supervisor advise them that you wish to make a claim in her IVA in such an event and any dividends that would have been payable to Lloyds can be paid to you.

[Tom.1]

Hi michael,
So that would mean that her payments to them would then come to me,but I will still end up paying the bulk of the debt though,is that correct?

[Michael Peoples]

You may have to pay all the debt back depending on when the first dividends are paid and how much they are. Any dividends received will reduce the balance and thus the length of the term but you will still have to maintain the contractual payments. Therefore you could have the debt repaid before her IVA finished meaning Lloyds would be entitled to no more dividends. You could have a claim on these.

[Tom.1]

So is there anyway I could LTSB to accept a reduced amount instaed of me paying of the whole sum or am I just clutching at straws?

Tom

[Michael Peoples]

It is possible that they would agree to a settlement but would almost certainly mark your credit file to reflect this. It would probably show as a short settlement which would impact adversely on you in the future.

[Tom.1]

I see, how many years could I expect this adverse effect to last?

Tom

[Michael Peoples]

All information whether adverse or good is normally held for a period of six years. If you have already been defaulted this may not matter as the original default will remain anyway.

[Tom.1]

So basically my triple A credit rating is down the pan and I am guessing, along with it, any chance of getting a mortgage on a new property?

Tom

[Michael Peoples]

It might be worth getting a copy of your credit file and seeing what is held. Your bank can correct the information if you discuss with them what happened and maintain the full payments from now on.