IVA failed which I found out a week ago when I received a solicitors letter

Get expert opinion. This is the place for new questions to be posted.
  • 1
  • 2
16 posts Page 1 of 2
User avatar
ian860
Posts: 6
by ian860 » Tue Aug 08, 2017 4:37 pm
Hi, I paid £11900 of an £19700 iva, which failed 2 years ago only to which I found out a week ago when I received a solicitors letter from my creditors for £15300, I contacted Aperture and I have been emailed statements of payments and my first copy of my failed iva letter, on the statement it shows only £4500 has been paid to creditors and the rest has been paid to themselves in fees, what can I do to resolve this as I now have to go into a dmp to sort this out
User avatar
Foggy
Forum Expert
Posts: 23503
Contact
by Foggy » Tue Aug 08, 2017 6:02 pm
Fees will have been deducted as agreed with the creditors and, also by agreement, take precedence over the debt to a degree. There is little you can do about that. As for the failed IVA . why have you not queried this over the past 2 years ? You haven't, presumably, been making payments over this time and surely would have wondered what was happening.

My advice would be to chat to a couple of insolvency firms to work out the best way forward in light of your current circumstances ... maybe another IVA, bankruptcy / DRO, or continue with a DMP.
User avatar
kallis3
Forum Expert
Posts: 71775
Contact
by kallis3 » Tue Aug 08, 2017 7:08 pm
Agree with Foggy - please speak to another couple of companies to see what your options are - there may be a way forward for you.
User avatar
Michael Peoples
Industry Expert
Posts: 15161
Contact
by Michael Peoples » Wed Aug 09, 2017 8:12 am
Creditors could have reinstated interest and charges but it appears that this is not the case. It is more likely that your debts were sold on and the solicitors are acting on behalf of the new owners of the debt which may be Max Recovery. They are a very commercial creditor and supportive of IVAs but they will also look at all forms of repayment. Speaking to another IP is good advice to see what the correct option is for you now.
User avatar
Lisa Thomas
Industry Expert
Posts: 5883
Contact
by Lisa Thomas » Wed Aug 09, 2017 2:32 pm
Didn't you receive any correspondence in the last 2 years? Have you moved address? Did you stop making payments?

Ultimately if your IVA has already failed and been terminated then you won't be able to resurrect it and will need to make new arrangements to deal with your debts.
User avatar
ian860
Posts: 6
by ian860 » Thu Aug 10, 2017 11:20 am
I received a letter saying that my iva was completed but never did it state it had failed, like anyone else would do I left it, max recovery pretty much took over the debts not long after I started my iva and the majority of the payments were made in the first 3-4 years, I struggled after, but never did I receive a letter from grant Thornton or Aperture to say my iva had failed, but £7000 in fees is just ridiculous and should of been made to the creditors, which now leaves me paying back more than I originally owed
User avatar
kallis3
Forum Expert
Posts: 71775
Contact
by kallis3 » Thu Aug 10, 2017 11:48 am
Have you checked the Insolvency Register to see what is showing on there?

I'm afraid there will always be fees.
User avatar
Foggy
Forum Expert
Posts: 23503
Contact
by Foggy » Thu Aug 10, 2017 12:00 pm
ian860 wrote:
I received a letter saying that my iva was completed but never did it state it had failed, like anyone else would do I left it, max recovery pretty much took over the debts not long after I started my iva and the majority of the payments were made in the first 3-4 years, I struggled after, but never did I receive a letter from grant Thornton or Aperture to say my iva had failed, but £7000 in fees is just ridiculous and should of been made to the creditors, which now leaves me paying back more than I originally owed



Do you still have a copy of that letter ? Leading up to a failure would have been a few letters, Notice of Breach and Notice of failure. Have you asked Aperture for an explanation as to why to got none of these?

Regarding the fees, as I said before, these were as agreed at the outset, by all parties, including you and there is nothing you can do about them.

You really need to concentrate your efforts now on sorting out a solution going forward, rather than looking to the past, before a creditor takes any enforcement action.
User avatar
ian860
Posts: 6
by ian860 » Thu Aug 10, 2017 1:55 pm
There's nothing about me on the register, I am starting up a dmp to get this sorted but I will be seeking some sort of action against Aperture ( even though I never had any dealings with them), last dealings I had was with grant Thornton, my iva started with Barnes and Ernst which I paid £660 to start up which obviously is to meet with creditors, then Blair endersby which then went grant Thornton who barely made any contact with me
User avatar
kallis3
Forum Expert
Posts: 71775
Contact
by kallis3 » Thu Aug 10, 2017 2:02 pm
Have you checked your credit records? Ask Aperture for copies of your file in the first instance. Have you considered doing a new IVA with a different company?
User avatar
ian860
Posts: 6
by ian860 » Thu Aug 10, 2017 2:13 pm
My experian credit report is good, I'm starting a dmp to get this sorted
User avatar
kallis3
Forum Expert
Posts: 71775
Contact
by kallis3 » Thu Aug 10, 2017 2:20 pm
Check the other ones as well. Noddle and Clearscore.
User avatar
ian860
Posts: 6
by ian860 » Thu Aug 10, 2017 2:54 pm
Clearscore is good too
User avatar
Lisa Thomas
Industry Expert
Posts: 5883
Contact
by Lisa Thomas » Fri Aug 11, 2017 8:14 am
This makes no sense to me. If you received a completion letter then it sounds as if your IVA completed, rather than terminated/failed, in which case your creditors cannot pursue you.

I would speak to aperture for clarification as to how your IVA finished.

If it completed then you need to inform the solicitor your debts were dealt with in the IVA which has now ended.

If however it failed then you need to deal with the debt.
User avatar
ian860
Posts: 6
by ian860 » Fri Aug 11, 2017 9:55 am
That's what im trying to do, I phoned Aperture and they said its failed and have emailed me a failure certificate last Friday but I received a completed letter but no certificate from grant Thornton but can't find the letter now,
  • 1
  • 2
16 posts Page 1 of 2
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 13 guests