My iva company have informed me today they are failing our iva after 4 years.

Get expert opinion. This is the place for new questions to be posted.
11 posts Page 1 of 1
Lou1892
Posts: 4
Joined: Wed Aug 16, 2017 6:00 pm
by Lou1892 » Wed Aug 16, 2017 6:22 pm
Hi I'm hoping someone can give me some advice. At the end of July I did our annual iva yearly review, expecting it to just go through as normal only to be called today and told they are failing our iva after we had breached our terms after we obtained a car on finance without there permission, I did explain I didn't realise we needed permission as we continued to pay our our iva monthly and we needed a car to get to work and the children to school. We are desperate not to be made bankrupt as We are home owners but our house is now worth less than what we paid for it 12 years ago. Debt free we're so unhelpful on the phone and basically told us there's nothing they could do, I called step change for some advice and they asked me to call them back for a full run down on our creditors and how much we owned, but again debt free told me I'd have to wait for all the information to be sent via post. We are devastated as we have worked so hard for 4 years for it to fail but are desperate not to be made bankrupt and to loss our house as we have 4 young children. Can someone please give me so advice and maybe point me in the right direction, thank you.
User avatar
Foggy
Forum Expert
Posts: 23262
Joined: Fri Dec 17, 2010 11:14 am
Contact
by Foggy » Wed Aug 16, 2017 6:59 pm
In my opinion your provider is overreacting and being veru unjust ! Stepchange is likely to suggest another IVA ( so another 5 / 6 years if accepted!).

It needs a bit of research and I would suggest having a read here about BR : https://www.iva.co.uk/bankruptcy then chatting to CAB as well as another provider (not one of the big firms or so called charity firms, as they are all, in my opinion, too creditor centric) about the pros and cons of BR ---- if you are certain that you are into negative equity it is unlikely that the house will be in danger, as seizing it would produce no return for ther creditors. You do need to check out the position regarding the mortgage though and keeping it viable, both from the viewpoint of the lender as well as the OR.
Lou1892
Posts: 4
Joined: Wed Aug 16, 2017 6:00 pm
by Lou1892 » Wed Aug 16, 2017 8:11 pm
I really can't go bankrupt as I will lose my job. I can't believe they can just cancel the iva as we have paid every month (apart from the agreed payment break during Christmas one year) I so wish we wouldn't of gotten into a iva to begin with but we were struggling as I was on maternity leave and gave debt free a call and it kinda snowballed really quickly. I'm so stressed it's unreal!!
User avatar
Michael Peoples
Industry Expert
Posts: 15116
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu Aug 17, 2017 7:54 am
The IVA has been breached as a result of the car loan but this breach can be rectified. Write to your IP and ask for a variation to be called whereby creditors have the option to forgive the breach as it was a genuine mistake and regardless you did maintain the IVA payments. Creditors rarely ask for failure or bankruptcy so really it should be their decision as to whether the IVA is failed or not.

Your IP must call a meeting of creditors within 21 days of a written request from you so see what creditors have to say and do not just accept the failure of the IVAs.
User avatar
Lisa Thomas
Industry Expert
Posts: 5861
Joined: Wed Dec 03, 2014 10:26 am
Contact
by Lisa Thomas » Thu Aug 17, 2017 8:21 am
I agree with Michael - also ask that your explanatory letter is included so creditors get to see your point of view.

You say 'we' are you both in IVAs?

I'm surprised you managed to get finance when your are in an IVA - as far as I know it's virtually impossible as your credit rating is usually trashed...!

Can you get a third party gift to settle the last year of payments? perhaps you can tie it all up in one bow and vary the arrangement to accept the HP breach and the F&F...
Lou1892
Posts: 4
Joined: Wed Aug 16, 2017 6:00 pm
by Lou1892 » Thu Aug 17, 2017 9:49 am
It's a joint iva with my husband, we just went to the car place and set up the finance and it was agreed, like I said we didn't realise we weren't allowed to and with it being accepted didn't think it would effect the iva as we continued to pay it in full every month. I've just spoken with debt free now and they are not willing to negotiate with me as it is a serious breach, she's advised me to continue to put aside the money we pay for our iva and then wait for the certificate of failure which can take a few month?! She then thinks that we can then negotiate a new agreement with someone else once that's done! I'm gutted and exhausted from not sleeping.
User avatar
Michael Peoples
Industry Expert
Posts: 15116
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu Aug 17, 2017 10:30 am
If you request a variation to be called then your IP must do so. I suggest you email the IP directly and send a copy registered post to ensure that they receive it and you have proof. It is ultimately up to creditors to decide but the variation is your chance to explain what happened and to request that creditors forgive the breach. Your IP cannot just go ahead and fail the IVA if you have requested a variation in an attempt to rectify the breach.
User avatar
Lisa Thomas
Industry Expert
Posts: 5861
Joined: Wed Dec 03, 2014 10:26 am
Contact
by Lisa Thomas » Thu Aug 17, 2017 11:19 am
I agree - stick to your guns and write to them formally so that if they still refuse to call a variation meeting you can make a formal complaint.
Lou1892
Posts: 4
Joined: Wed Aug 16, 2017 6:00 pm
by Lou1892 » Thu Aug 17, 2017 12:17 pm
Thank you, I have requested a variation to be held and have also typed up a letter to send. Can I just ask what happens to debts that the companies no longer exist? I've been getting together all the debts that are involved and some I can't find details on (northern rock) will these debts be put under another company now?
User avatar
Michael Peoples
Industry Expert
Posts: 15116
Joined: Mon Nov 03, 2008 12:36 pm
Contact
by Michael Peoples » Thu Aug 17, 2017 1:11 pm
Any debts for companies that no longer exist will have been sold on so the debts are still live. If creditors refuse the variation you can demand a full receipts and payments account from your IP together with a list of current creditors. This will show who owns what debts now.
User avatar
Lisa Thomas
Industry Expert
Posts: 5861
Joined: Wed Dec 03, 2014 10:26 am
Contact
by Lisa Thomas » Thu Aug 17, 2017 1:45 pm
You IP will send the letter to the relevant creditors so I wouldn't worry about collating a list - they have the details.
11 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 17 guests