IVA advice

[5aside]

Hello all,

 

My husband has an IVA which he started in 2008 and which was made up of business debts to the tune of about 13K. He has 5K remaining on it and its due to finish next year.

 

We have recently moved abroad and he stopped paying the IVA, so it has gone unpaid for roughly 9 months (unbeknown to me at the time). I am on a bit of a quest to sort out our finances at the moment so have taken over all his affairs, I dont know much about IVA's so am looking for some advice please.

 

He called Debt Free Direct, the iva company, a month ago to touch base, apologise for missing payments, let them know we had moved etc. They informed us that the account had been passed on for 'failure' because he had not paid it and had also not responded to communication from them, but that a hold note had been put on the account pending further communication from us.

 

My questions are -

What does IVA failure entail? if it means it stops then will he get a load of creditors after him again even though we are no longer resident in the UK.

 

He took out a credit card a year ago, I believe this is not allowed under the terms of the IVA. We are now stuck trying to repay vanquis which means that an IVA payment would have to be less....however, if we admit all of this will there be huge trouble?

 

The IVA is due to finish next year, because he missed 9 months of payments, do they extend the term by 9 months? or will it end and have a lump sum outstanding?

 

I believe there is PPI on the account as have looked through statements and it shows up. Can we reclaim this to be taken off the balance outstanding on the IVA?

 

What can the IVA company do to us now we have moved abroad? is his IVA even still legal?

 

What do I do and where do I go from here - as in the best way to deal with this, any letter templates, stories from others.....anything would help!! Do I write or do I call?? I have had some great advice from this forum so far and feel so empowered by it!

 

Thanks all.

[Wintry]

Hello all,

 

My husband has an IVA which he started in 2008 and which was made up of business debts to the tune of about 13K. He has 5K remaining on it and its due to finish next year.

 

We have recently moved abroad and he stopped paying the IVA, so it has gone unpaid for roughly 9 months (unbeknown to me at the time). I am on a bit of a quest to sort out our finances at the moment so have taken over all his affairs, I dont know much about IVA's so am looking for some advice please.

 

He called Debt Free Direct, the iva company, a month ago to touch base, apologise for missing payments, let them know we had moved etc. They informed us that the account had been passed on for 'failure' because he had not paid it and had also not responded to communication from them, but that a hold note had been put on the account pending further communication from us.

 

My questions are -

What does IVA failure entail? if it means it stops then will he get a load of creditors after him again even though we are no longer resident in the UK.

 

He took out a credit card a year ago, I believe this is not allowed under the terms of the IVA. We are now stuck trying to repay vanquis which means that an IVA payment would have to be less....however, if we admit all of this will there be huge trouble?

 

The IVA is due to finish next year, because he missed 9 months of payments, do they extend the term by 9 months? or will it end and have a lump sum outstanding?

 

I believe there is PPI on the account as have looked through statements and it shows up. Can we reclaim this to be taken off the balance outstanding on the IVA?

 

What can the IVA company do to us now we have moved abroad? is his IVA even still legal?

 

What do I do and where do I go from here - as in the best way to deal with this, any letter templates, stories from others.....anything would help!! Do I write or do I call?? I have had some great advice from this forum so far and feel so empowered by it!

 

Thanks all.

 

Hi

 

Just a brief guide from me based on the limited info provided

 

If the IVA is breached either by missing payments or another rule such as taking on further credit then it may be failed / terminated as per the IVA TERMS AND CONDITIONS.

 

He could be made bankrupt if there are assets or the IVA just terminated leaving creditors free to pursue again where balances are outstanding on the original total debts.

 

It would depend on where you are as to if and how creditors would try to pursue you however if you returned then it would the basic process again, as before really.

 

If there are assets and PPI claims it might be possible that the IVA company could look at a full & final settlement using these and including the monies already paid into the IVA too date (they will want their fees howver)

 

The PPI issue is a much debated subject as far as IVAs are concerned as any claims would be classed as an asset if it is stated in the IVA terms and conditions.

 

If you use a claims company for any PPI claims then there can be whopping percentages taken out for their fees, many IVA companies recommend claims companies to do the PPI stuff and again this is a much debated area.

 

I would be surprised if the IVA company have not already mentioned or looked the PPI issue.

 

The IVA company might look at extending the payment period depending on the above and how far things have already gone

 

If he is solely in the IVA then it is he who needs to speak with the IVA company to be certain on the overall situation and options etc as they will not likely discuss things with you unless you have your husbands signed consent or he is present when you call and gives his permission for you to discuss.

 

They will more than likely ask why payments have stopped and what his / your current financial position is (disposable income wise.

 

There may be a way forward to sort things depending on payments into the IVA too date, potential PPI claims, assets and any possibility of future payments into the IVA etc but again this would depend on full overall circumstances;

 

If the IVA company have put a hold note on the account pending further communication from you then that speaks for itself and you need to take carefull heed any time limits regarding the account hold.

 

On a plus I have seen a number of IVAs settled by full & final recently but again it would depend on full circumstances and individual cases.

 

Speaking with the IVA company is the key here

 

Like I say just a brief guide only from me based on what you have put so far.

 

It might be a good idea get full advice third party advice agency if possible again keeping in mind any time limits regarding the IVA companies hold on the account (this is of paramount importance)

 

Any decisions are left with you

 

Best Wishes

Edited July 20, 2013 by Wintry

[5aside]

Hi

 

Just a brief guide from me based on the limited info provided

 

If the IVA is breached either by missing payments or another rule such as taking on further credit then it may be failed / terminated as per the IVA TERMS AND CONDITIONS.

 

He could be made bankrupt if there are assets or the IVA just terminated leaving creditors free to pursue again where balances are outstanding on the original total debts.

 

It would depend on where you are as to if and how creditors would try to pursue you however if you returned then it would the basic process again, as before really.

 

If there are assets and PPI claims it might be possible that the IVA company could look at a full & final settlement using these and including the monies already paid into the IVA too date (they will want their fees howver)

 

The PPI issue is a much debated subject as far as IVAs are concerned as any claims would be classed as an asset if it is stated in the IVA terms and conditions.

 

If you use a claims company for any PPI claims then there can be whopping percentages taken out for their fees, many IVA companies recommend claims companies to do the PPI stuff and again this is a much debated area.

 

I would be surprised if the IVA company have not already mentioned or looked the PPI issue.

 

The IVA company might look at extending the payment period depending on the above and how far things have already gone

 

If he is solely in the IVA then it is he who needs to speak with the IVA company to be certain on the overall situation and options etc as they will not likely discuss things with you unless you have your husbands signed consent or he is present when you call and gives his permission for you to discuss.

 

They will more than likely ask why payments have stopped and what his / your current financial position is (disposable income wise.

 

There may be a way forward to sort things depending on payments into the IVA too date, potential PPI claims, assets and any possibility of future payments into the IVA etc but again this would depend on full overall circumstances;

 

If the IVA company have put a hold note on the account pending further communication from you then that speaks for itself and you need to take carefull heed any time limits regarding the account hold.

 

On a plus I have seen a number of IVAs settled by full & final recently but again it would depend on full circumstances and individual cases.

 

Speaking with the IVA company is the key here

 

Like I say just a brief guide only from me based on what you have put so far.

 

It might be a good idea get full advice third party advice agency if possible again keeping in mind any time limits regarding the IVA companies hold on the account (this is of paramount importance)

 

Any decisions are left with you

 

Best Wishes

 

Hi,

Thank you so much for your reply. Unfortunately after submitting an income and expenditure form the iva company has terminated the agreement.

 

We are living in the Republic of Ireland and have no assets like houses or cars or actually savings. Could they chase us over here through the court system for the debts.

 

Also none of his creditors from the iva show on his credit report, just the iva as a court judgement. The ppi remains a cloudy issue, we have requested all details of ppi payments made.

 

Now the iva is in failure I presume that we can claim the ppi and then keep the money/use it to pay off any other creditors? And that we do not need to do this through the iva company itself or the agency they recommend?

 

Thank you so much for your help and response, it's all a bit confusing to me and my husband just burys his head in the sand.