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Failed IVA....

Last post Sun, Feb 22 2009, 10:02 PM by Somerled. 5 replies.
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  •  Sun, Feb 22 2009, 10:02 PM

    Re: Failed IVA....

    Hi Bilkodog, sorry to hear about the marriage brake up but it happens to the very best of us mate. Hopefully your debts will just pass away in the mists of time but if they don't and you EVER face bankruptsy just remember that no one forces use to keep your present name other than yourself. You can legally change your name (or part there of). You inform ALL of the authorities like the National Insurance office, passport people etc etc. You can legitimately open a new bank account in a new name. There are many things that you can do other than borrow money under false pretences as that is fraud and illegal. Still, it is amazing just how many people want you to have their credit cards/facilities!

    The very best of luck mate and I like your style!

    • Post Points: 5
  •  Sun, Feb 22 2009, 7:44 PM

    Re: Failed IVA....

    Yet again excellent advice Somerled. Anyone reading this in financial difficulties would do well to take your advice. I only wish I had this advice 3 or 4 years ago when 'Haines Watts' talked me into an IVA! With hindsight, I should have gone down the bankruptcy route. I had debts of GBP 35,000, all unsecured debt on loans, credit cards etc. I had no debt to friends, nor to the tax man or VAT. I had zero assets and that is still the case. I was in a minimum wage job earning less than 800 per month. Stupidly I ended up getting talked into an IVA and I struggled to meet those payments for 2 years. This put pressure on me and my wife and we ended up splitting up.

    I resent the IVA process now. Even if my debts have been sold on, and these secondary 'blood sucking' creditors come looking for me in the coming months/years, they can bloody well make me bankrupt before I put myself through that again. They can threaten Court, Baliffs etc but I will dig my heels in and call their bluff. If they are prepared to pay the cash to bankrupt me so be it.......that is when I will take them seriously.

    Rant over! Thanks Somerled.....you have helped me a lot. Cheers.

    • Post Points: 20
  •  Sun, Feb 22 2009, 6:49 PM

    Re: Failed IVA....

    Bilkodog, you are most welcome to the advice mate. As you are slightly further down the 'realistic' thought process than I originally thought from your original posting may I add a couple of other possibly useful tips.

    The ONLY people that you DO NOT screw around in your position is friends, loved ones, the VATman and the Tax man. The last two NEVER go away and so you do a long term deal with them. If you are not into these last two then the picture becomes easier for you. You are right to think about bankruptsy and you may have saved yourself quite a lot of money in the first place if you had taken that route. Unfortunately your IVA supervisor and his company (most of them need shooting) earn nothing out of you if you go bankrupt (the reason they are so keen on IVA's in the first place.

    If anyone else is reading this and in a similar position the right way to go is....first and foremost go and see a professional insolvency expert (companies are in yellow pages). Find a quality company that offers an initial free interview. Be well prepared for this first, free meet and take ALL of your debt paper work with you. Have listed ALL of your debts and ALL of your assets (acurately). At the end of the meeting they will tell you what you already know, that you are in a bankrupt situation (debts out-weighing assets). That is why you make sure that it is a free initial meet. You then secure the lowest possible price that you can to get this company to confirm their findings to you IN WRITING!

    The piece of paper you get from a professional and respected insolvency company can be worth thousands (and in some cases millions of pounds) to people in a bankrupt situation. You then go and see ALL of your creditors personally (those that you can go and see physically) and let them photocopy your insolvency letter. They will then report your situation to their credit or finance department and in most cases be very grateful for your visit. Most people will then treat you as a bad debt and will right you off. In the main these companies do NOT want to lose any more money on you and certainly wont want to spend £500 (or whatever it is now) court bankruptsy pitition fee plus their legal costs.

    'IF' a company sells their debt to a secondary company (see my above post), you are in a slightly different position as the second company will use more desperation tactics to get something/anything out of you. Just make sure you HAVEN'T got an expensive car, jewellery or household items. Give a copy of your insolvency letter to them and likewise you will most probably right you off. It is not unkown for these secondary companies to sell your debt off again to a third recovery company at about 2.5p in the pound. All of these companies work on the basis that if you can pick enough debts up for cheap enough they will be able to frighten enough people and get money out of them to make a profit. Make sure it is NOT you that they frighten with threats of court action, bailiffs etc etc.

    If anyone cannot or does not want to face the hassle of these people, then go bankrupt. Creditors are NOT ALLOWED by law to chase you direct but HAVE TO deal direct with the court. Bankruptsy only lasts for 12 months now and is not the end of the World whatever you here from some experts. The World and life still goes on and you will still end up with people trying to sell you things including banks and credit cards!

    Good luck to anyone in a tight spot at the monet and don't let the b*****d's get you down!

    • Post Points: 20
  •  Sat, Feb 21 2009, 5:45 PM

    Re: Failed IVA....

    Thank you Somerled for your kind reply, I very much appreciate your input and it sounds absolutely spot on advice. After my IVA failed I was fully expecting my creditors to hound me and, indeed, petition for my bankruptcy. I would go as far to say that I actually HOPED they would make me bankrupt thereby saving me the fee and bother of doing that myself! But 18 months on and having had no contact I now hope that they have written off my debts as unrecoverable. Maybe you are right though, they may well sell those debts on in the future and I may have to face up to bankruptcy in the long run.

    I guess I can only wait and see what happens. Thank you again for your sensible reply.

    • Post Points: 20
  •  Sat, Feb 21 2009, 5:25 AM

    Re: Failed IVA....

    You will find that you haven't heard anything from your creditors because your IVA supervisor would have informed them of your reasons for failing the original arrangement. They will have lost money on you and won't want to lose any more by chasing you and running up further debts for themselves. Unfortunately the good news stops there. Dependant on which creditors you owe money to as to different companies policies. Some companies will right you off completely as a bad debt but many companies will sell your debt off to a specialist debt recovery company. That way they at least get something back on your original debt. The second company typically pays something like 10p for every pound of debt. If one or any of your debts is passed onto one of these debt recovery companies you will certainly know about it as they will absolutely hound you for some kind of payments. You must remember though, you cannot pay what you haven't got and if you do ever start to get hounded by these people, go immediately to the Citizens Advice bureau for free help.

    These outstanding debts will last for about 7 years on your credit files but after that and with no further problems, they die away. You can clean your credit files up beforehand by paying off any outstanding debts and then applying to the credit agency that represents that company to clear the debt against your name. Some paper work from you is involved and usually there is a standard fee to be paid to the credit agency.

    Good luck.

    Good luck.

    • Post Points: 50
  •  Fri, Feb 20 2009, 6:06 PM

    Failed IVA....

    Hi,

    I was wondering whether anyone could offer me some advice regarding my failed IVA? I took out the IVA in 2005 (Haines Watts was my provider). I made payments for 2 years but in 2007 my circumstances changed (lost my job, split up from partner) and subsequently I fell behind in IVA payments. This resulted in the IVA failing mid 2007. My IVA Supervisor wrote to me at that time stating that the IVA had failed and informed me that the IVA Company would not be pursuing my bankruptcy, although the debts would be returned to my Creditors.

    I have not heard from any of my Creditors in the past 18 months. I realise this is a good thing at present but I am worried that this will come back to haunt me in the future! My question is this....is it likely that the Creditors have simply 'written off' the debts or might they pop up and chase these debts in years to come? Should I contact these creditors now and arrange some form of debt management plan? (I have no assets and I am on a minimum wage job at present).

    Also, will these debts remain on my credit rating for the rest of my life? Any relevant advice would be appreciated.

    • Post Points: 20