IVA Failure - dca chasing me...

[redfraggle]

I am new to this site so I am sorry if this question has been asked before.

 

I had an IVA put in place in 2003 and it was due to run for 6 years - the last payment being due on 1st March 2009. I paid it off every month without fail. 3 years ago I moved to Australia and as I was on less money I had the payment amount renegociated which was fine and I paid on time every month. Then I fell pregnant, again they were reasonable and I was able to suspend my payments for 10 months maternity leave. However it turned out to cost prohibitive for me to go back to work so I wrote to my IVA company explaining the situation and asked what I could. They in turn put a proposal to my creditors that the amount I had already paid be deemed enough and to close the IVA. This was rejected and the IVA was failed. My IVA company (Langley & Partners, London who have been fantastic) advised me that although the companies could choose to chase me for the remaining debt they were unlikely to do so given that I was in Australia and have no assets nor the means to repay. However I have already received letters from one of the creditors to my address in Australia. My mum is receiving letters at her house from other creditors despite the fact that I have not lived there since 1999 and she has also had a "trace confirmation" stating that they have confirmed I am living there. This is not possible since I am currently typing this from Australia. How long do the creditors have to chase me? I know there is a 6 year limit but is that 6 years from when the IVA failed or from my last communication with them. I have not communicated directly with my creditors since I handed the whole mess over to Langley in Septembet 2002.

Any advice / info would be appreciated.

[sosumi]

I am new to this site so I am sorry if this question has been asked before.

 

I had an IVA put in place in 2003 and it was due to run for 6 years - the last payment being due on 1st March 2009. I paid it off every month without fail. 3 years ago I moved to Australia and as I was on less money I had the payment amount renegociated which was fine and I paid on time every month. Then I fell pregnant, again they were reasonable and I was able to suspend my payments for 10 months maternity leave. However it turned out to cost prohibitive for me to go back to work so I wrote to my IVA company explaining the situation and asked what I could. They in turn put a proposal to my creditors that the amount I had already paid be deemed enough and to close the IVA. This was rejected and the IVA was failed. My IVA company (Langley & Partners, London who have been fantastic) advised me that although the companies could choose to chase me for the remaining debt they were unlikely to do so given that I was in Australia and have no assets nor the means to repay. However I have already received letters from one of the creditors to my address in Australia. My mum is receiving letters at her house from other creditors despite the fact that I have not lived there since 1999 and she has also had a "trace confirmation" stating that they have confirmed I am living there. This is not possible since I am currently typing this from Australia. How long do the creditors have to chase me? I know there is a 6 year limit but is that 6 years from when the IVA failed or from my last communication with them. I have not communicated directly with my creditors since I handed the whole mess over to Langley in Septembet 2002.

Any advice / info would be appreciated.

Hi Redfraggle

Just 'bumping' your post back to the top.

[clemma]

The clock will start ticking after the first payment is missed to your creditors. When was the last payment made to them through your IVA? As for your other questions, I'm not sure what the DCA's will do. It would probably all depend on how much is outstanding. Hopefully someone else will be able to help.

 

Tell your Mum to send all letters back marked "not at this address".

[notsoevil]

I agree with the above if your mother continues to recieve letter she can contact them (in writing is she wishes) to say you havent lived there since..... and now live australia. Thats all she needs to say. Dont forget DCA have to stop contact once they have been informed that the person they are chasing is not there.

 

Difficulty is if they do a search and you still registered as living at that address (for eg on voters roll there or bank statements are still going there) they may believe you are still living there.

[notsoevil]

oh and see my post on DRO's not sure if it will help you..

[payback68]

Fraggle, the whole point of an IVA is that you have somebody to deal with your finances on your behalf, they set a payment which your creditors are happy with, if you default i would assume that the IVA becomes null and void, it's sort of a last chance. If they have negotiated on your behalf over the years to reduce the payments to benefit you that's good, however if you keep defaulting that's not good. I have been told that an IVA is only really worthwhile to debtors owing more than 15000GBP and furthermore the private companies that deal with IVA'S get paid somewhere in the region of 5000GBP/ application accepted. This maybe why they advertise on T.V.

 

As far as your mother is concerned, do exactly what clemma has stated, however they may ask your mother for a forwarding address and possibly hasstle her until she does supply the info, if they do, tell your mother to tell them that your on the moon somewhere, but not sure where exactly.

 

Regards.

[Garyfoss]

A lot of advice. I would say speak to a government source like the Consumer Advice Bureau first before you make any big decisions. There are all kinds of insolvency, and debt management & consolidation companies too. Start with CAB, like mentioned, and then go from there. Hope that helps & best of luck.

Edited February 24, 2013 by alanfromderby