Failed IVA and next steps

wezza7
wezza7 Posts: 7 Forumite
First Post First Anniversary Combo Breaker
in IVA & DRO
Hi,

I entered into an IVA which started in May 2011. Unfortunately towards the end of the IVA my supervisor advised that my payments towards the IVA were not enough and I would need to make up the shortfall so that the IVA could be closed. I tried my best to find the money owed to meet the demand but missed the deadline set by the creditors.

I am now in a position where the IVA has failed and do not know what my rights are in terms of reaching an agreement with my creditors. I have had no contact with any of the creditors since before my IVA started which was over six years ago and am looking to seek a solution. My total debt with all the creditors is £17500 and there is no way I can afford to repay this.

I'm now at my wits end and don't know who to turn to for advice.

Any advice would be greatly appreciated.

Comments

  • sourcrates
    sourcrates Posts: 28,870 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Hi,

    The limitations period continues throughout any period of Bankruptcy, if you have not paid your creditors directly in over 6 years, the debts may be statute barred.

    You should check and see if the same applies to an IVA.

    Contact national debtline for advice.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • wezza7
    wezza7 Posts: 7 Forumite
    First Post First Anniversary Combo Breaker
    Thanks for the advice. I will look into this.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi wezza7

    For your debts to be statute barred there would have to have been 6 years where you hadn't acknowledged the debt in writing or made a payment. Payments made through the IVA will count so I suspect from you have said there has not been more than 6 years where the debts have not been paid, and they are therefore not statute barred.

    If that is the case you will need to consider your other options. It could be you will self negotiate a payment plan, use a free debt management company or consider a different insolvency option to have all of your debt written off. I’d recommend contacting one of the free debt advice agencies to discuss all of your options. Good luck.

    Susie
    @nationaldebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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