Failed IVA 2 years ago.....

[Silverado 2011]

......and now a solicitors letter has arrived asking to pay MBNA £15,000 and I don't know what to do as I'm not in a position to repay this. I could offer minimal repayments but as of yet I havent communicated with them at all.

 

A little back story, my IVA failed as I was made redundant in 2008 and was unable to maintain payments. I've been back in work for almost 9 months and everything is going well. During the time I was unemployed I accrued a large amount of mortgage arrears (balance is approximately £3,800 at the moment) which I am slowly but steadily paying off, this will take approximately another 18 months to clear completely.

 

I work in a profession where bankruptcy would result in not being able to practice so I'm keen to avoid this, however, I'm scared witless that a judge could see that I'm insolvent should the solicitors go for the jugular.

 

The amount owed to all creditors when the IVA failed is in the region of £50k so I may not have many options but keeping my profession and a roof over my head would be preferable.

 

If anyone has any advice on:-

 

1) The best course of action regarding the solicitors letter on behalf of MBNA.

2) My overall situation.

 

I'd be extremely grateful.

[sequenci]

Hello there, welcome to CAG.

 

Are you a homeowner?

[Silverado 2011]

Thanks for the reply Sequenci.

 

Yes I am a homeowner.

[sequenci]

Hello again.

 

You have three options:

 

a) complete a personal budget and start to make informal offers to your creditors (usually via pro-rata payments, take a read of my blog)

b) a debt management plan (via one of the free providers, if possible)

c) another IVA

 

at the same time you could also consider seeing if you can reclaim penalty charges, PPI etc?

[Silverado 2011]

I was considering another IVA, my worry is that the creditors wouldn't go for it as I failed the last one.

 

I know its another 5 years of my life but at least its 'managed' and I can keep all debts everything in one place.

 

Has anyone experience of a second IVA after the first one failed?

[sequenci]

I've seen a few go through OK. You're correct that the creditors may be more reluctant to agree this time around but it's not impossible.

 

As far as the solicitor's firm is concerned, they actually have no further powers to do anything than the original creditor had.

 

Is there much equity in the property?

[Silverado 2011]

Oh thats worth knowing thanks.

 

Almost no equity in the proprty, It may be marginally negative,

[nottslad]

If your nominee for the IVA values the property on a forced-sale basis, with what you mention re possible negative equity, an IVA would give a better result to creditors rather than bankruptcy, and a well constructed information pack to be sent to the creditors for the MOC to consider the proposal would illustrate this clearly and 'sell' the idea to the creditors.

 

If there is negative or very little equity in the property, by the time this was sold and the trustee in bankruptcy / OR fees were paid out from any estate, the amount to be paid in a dividend would probably be far lower than that of an IVA. In the reasoning behind the IVA, it should clearly be noted that the first IVA failed due to redundancy and not just not paying

[Silverado 2011]

Thanks Nottslad, yeah absolutely thats my thinking.

 

Surely to a creditors viewpoint is better getting something instead of nothing and also making me homeless and losing my profession in the process.

[nottslad]

Completely Jopea

 

I have a sound understanding from a creditor's point of view thanks to my employment, and provided the proposal is realistic and the dividend is more than what would be available in bankruptcy, it makes sense to accept

[StinkyFeet]

Hello again.

 

You have three options:

 

a) complete a personal budget and start to make informal offers to your creditors (usually via pro-rata payments, take a read of my blog)

b) a debt management plan (via one of the free providers, if possible)

c) another IVA

 

at the same time you could also consider seeing if you can reclaim penalty charges, PPI etc?

 

Hi sequenci, Wouldnt it be a option to check on if solicitors have a agreement for this debt (CCA) as another option?

 

Wouldn't it also be worth Jopea checking when last payments where made to this debt either directly or from the Insolvency Practioner as Jopea may not have made enough payments that left anything over to pay creditors once IP took there payment?

 

Not challenging anything you said mate just running a few ideas that may help

[sequenci]

Not challenging anything you said mate just running a few ideas that may help

 

No worries! The CCA route is another option, I guess it's down to the OP and whether they would like a potentially long and drawn out battle via the courts.

[StinkyFeet]

No worries! The CCA route is another option, I guess it's down to the OP and whether they would like a potentially long and drawn out battle via the courts.

 

Was more thinking about the CCA route as being a delay to them while OP checks when they received last payment on this debt as could be a case that it not got long left if for example no payment been received by them in say 5 years.

 

Many thanks matey

[sequenci]

Was more thinking about the CCA route as being a delay to them while OP checks when they received last payment on this debt as could be a case that it not got long left if for example no payment been received by them in say 5 years.

 

Many thanks matey

 

v.good point

[Silverado 2011]

Thanks all for the recent replies.

 

I think I will go down the CCA route as well whilst I collect my thoughts on everything. I'd love it to all go away instead of another 5 years at £360 a month but I can't risk losing the house.

 

I've some serious thinking to do, its definitely playing on my mind a lot at the moment.

[sequenci]

HI again, when did you sign all these credit agreements?

[debtinfo]

I see two problems here,

 

1. the last pament would have been 2008 since the OP was paying an IVA

 

2. The OP has accepted in a court document when entering the IVA that the debts were valid, in those circumstance im not certain that they would even need the original agreements

[Silverado 2011]

The original credit agreements werre signed between 2001 & 2004. The IVA was set up in 2005 and there were no payments after Jan 2008.

 

I was wondering about the need for the originals with the IVA, it sorta supercedes it.

[StinkyFeet]

I see two problems here,

 

1. the last pament would have been 2008 since the OP was paying an IVA

 

2. The OP has accepted in a court document when entering the IVA that the debts were valid, in those circumstance im not certain that they would even need the original agreements

 

Know what you saying mate but my sister was in exactly the same boat as OP, I advised her that since she had been in a IVA in theory the debts would have been accepted, her thoughts where what did she have to lose.

 

It proved me wrong as the 4 of the 9 creditors who did make contact, never ever said anything about the IVA etc etc and either ignored the CCA request and one said they hadn't got agreement and mentioned nothing further.

 

As the OP is trying to avoid the Bankrupt route because of his job, therefore I posted as believe that it is a option for him / her to pursue, and as they say, nothing ventured nothing gained. He or she may hit a wall, but surely its worth burning this bridge.

 

As you stated, the OP was paying into a IVA, but so was my sister, but as the Insolvency Practioner running the IVA's fee came first and payments she had made into the IVA arrangement merely covered that, the creditors got ziltch. Therefore, a check on last payment definatly worth looking into.

 

Obvously, this wouldn't apply to all, if someone had been in a IVA for 3 years and made 3 years of payments, then there definately a high chance that the creditors did get a payment. A quick check on the credit files would confirm this.

[StinkyFeet]

The original credit agreements werre signed between 2001 & 2004. The IVA was set up in 2005 and there were no payments after Jan 2008.

 

I was wondering about the need for the originals with the IVA, it sorta supercedes it.

 

Just noticed your reply about IVA payments and well pointed by Debtinfo.

 

I still think I would try this avenue, honestly, it could come to a dead end, however, it may not.

 

Did you actually go to court on IVA date or did IP deal with this?

[Silverado 2011]

I never went to court, was all dealt with by my IVA provider.

[StinkyFeet]

I never went to court, was all dealt with by my IVA provider.

 

Thanks for the update. Can you get a copy of credit reports to see when last payment was made?

[Silverado 2011]

Thanks for the update. Can you get a copy of credit reports to see when last payment was made?

 

Yes I'm sure that wouldn't be a problem. I can also check my bank statements.

[crabbingtime]

Can I ask why the Supervisor of your failed IVA after two years did not petition for your Bankruptcy. Is this the standard condition in an IVA........

[Silverado 2011]

Can I ask why the Supervisor of your failed IVA after two years did not petition for your Bankruptcy. Is this the standard condition in an IVA........

 

You can ask but I don't have any answers. I just received a letter stating that the IVA failed and a statement of payments and deductions.

 

Anyway, I received another letter from the Solicitors today with more threats so I think I'll send a CCA request tomorrow.