DCA to Failed IVA's

[Suzylou]

Hi bit of advice please, if you are ina failed IVA and have not made any payments are you basically a bankrupt. Also how long does it stay on the credit rport agencies, 6 years after default or 6 years after it first started. Can DCA's still come after you for the debt?

[AWC]

As far as I am aware, if you fail to keep up payments on an IVA which in turn fails, you can and will be chased for the outstanding amounts and may be forced to go bankrupt.

Backruptcy stays on record for life, and you will be unlikely to ever get credit or a mortgage again. Should you come into any equity or obtain assets worth any amount, your creditors can seize your property or assets etc in order to recover their losses.

If you enter into any agreement, IVA or DMA, it is extremely important that you stick to it, ignoring creditors will look very bad in court and do you no credit at all.

[rippedoffagain]

Originally Posted by AWC

As far as I am aware, if you fail to keep up payments on an IVA which in turn fails, you can and will be chased for the outstanding amounts and may be forced to go bankrupt.

Backruptcy stays on record for life, and you will be unlikely to ever get credit or a mortgage again. Should you come into any equity or obtain assets worth any amount, your creditors can seize your property or assets etc in order to recover their losses.

If you enter into any agreement, IVA or DMA, it is extremely important that you stick to it, ignoring creditors will look very bad in court and do you no credit at all.

I don't think that is stricktly true, however you may be asked as part of a future application for something, and to lie could in some circumstances be regarded as fraud.

[gizmo111]

As far as I am aware, if you fail to keep up payments on an IVA which in turn fails, you can and will be chased for the outstanding amounts and may be forced to go bankrupt.[

Generally a failed IVA will end up in Bankruptcy, I suggest you talk to your IP who is managing your IVA

Backruptcy stays on record for life, and you will be unlikely to ever get credit or a mortgage again. Should you come into any equity or obtain assets worth any amount, your creditors can seize your property or assets etc in order to recover their losses.

Not strictly true - After a time you wil lbecome a discharged bankrupt, you wil lfind it difficult to get mainstream credit, butthere are plently of cub prime mortgage lenders who will lend to a discharged bankrupt. The interest rates wil lbe higher to reflect their risk. It will stay on your files at the CRA for 6 years.
Once you are bankrupt you deal with the trustee and not your creditors, they cannot come and seize your assets. Any windfall or inheritance that you receive whilst bankrupt should be declared and is likely to be taken off you before you are discharged.

If you enter into any agreement, IVA or DMA, it is extremely important that you stick to it, ignoring creditors will look very bad in court and do you no credit at all.

[/quote]
It is important to stick to agreements of this nature, but circumstances change and the terms of an IVA is so restrictive that many fail. The BR court is obviously aware of this.

[gizmo111]

Have a read here for more info

http://www.consumeractiongroup.co.uk...ling-debt.html

[AWC]

Thanks for clearing up my post guys, always a learning process. I've had an IVA for 2 years now, very restrictive but I am sticking to it and look forward to when it is over, although I still feel I have been ripped off.

[gizmo111]

Originally Posted by AWC

Thanks for clearing up my post guys, always a learning process. I've had an IVA for 2 years now, very restrictive but I am sticking to it and look forward to when it is over, although I still feel I have been ripped off.

They are very restrictive, I personally would never recommend one to someone, but in some cases employers won't employ a bankrupt, discharged or not. Mind you some won't employ those that have been subject to an IVA.

At least you are nearly half way through yours - bet you wil lbe glad when it's over.

[AWC]

Originally Posted by gizmo111

They are very restrictive, I personally would never recommend one to someone, but in some cases employers won't employ a bankrupt, discharged or not. Mind you some won't employ those that have been subject to an IVA.

At least you are nearly half way through yours - bet you wil lbe glad when it's over.

I wouldn't recommend one either, so many other options, but at the time when one is so worried...

Yes, I will be glad when it is all over. Plan to stick at it until the bitter end, but will never take credit again, just isn't worth it.

Sorry Suzylou for hijacking your thread

[Suzylou]

Thank you guys for your reply's but whilst I was a failed IVA I indeed managed to get a mortgage with my husband also a failed IVA, we have no contact with the orignial company that set up the IVA in 2000, they were so restirictive to the point that they asked me to reduce costs of £50.00 per month on childrens clothes, of which I have 3!
I was advised not to send them anymore Money by a solicitor for a firm I was working for. I threatened them with legal action for misinformation when we were setting up the IVA's and since then I have not had creditors chasing me luckily and my husband had a few but has come to agreements with 3 of them.I have noticed it says on my CRA that myself and my husband are Insolvent. and that any reference to this will be removed in 2008 does that mean no one will see it on any CRA after this date? I don't think it stays with you for life as previously stated otherwise you may as well give up living.
I would never recommend an IVA because it is not made clear they will take you for every penny you have extra even though you had agreed an amount initially. The cost of living goes up but you are not allowed that luxury!.

I suppose I have been lucky but circumstances from a previous divorce put me in that situation and I felt that was the only way. I would have just gone bankrupt had I known. Depends on your job if your employer would let you continue to work, but would be quite harsh if they didn't making your situation worse if that was the case.
The rules on bankruptcy have changed I think in the last year and is not such a stigma on people's reputation's however it is still not a step to be taken lightly.