Failed IVA letter landed today!!

brainy74

i posted this elsewhere on here and was advised to put it here too.......

This is our first post so please bear with us its been 18 months since the iva was set up and we're trying to remmember stuff.....
we also wish we knew about this site before as we would never have gone near debt free direct (or clearstart as it was) with a long stick!!!!!!
we have both (my wife and i) had failed iva letters thought today which isnt a shock as i was made redundant 6 months ago, we had a payment beark over christmas expecting me to find work in the mean time but never happened.....

we asked dfd for more help and were told by the tele sales girl not to worry to much as it would take a few months to notice / process the default notice again by which time i might have a job!!

then later we were asked to write to them regarding notice of breach and we did asking them to ask or creditors to review the payments in the short term but they said they couldnt do that in the first two years of the iva....

we,ve paid them over 6K within the first year of which only £700 is going to pay creditors:mad:

now we're looking though paper work we are really not sure what to do..we really want to avoid the bankrupsy route as we realy dont wont to lose our house of 11 years as us and our kids love it here its their home! but there is about 8k equity in it so i've been told theyll come after it...

also we were originaly told by dfd to take a joint iva at around £300 p/m and by the end of the set up we had seperate ones paying in over £500 between us....and one of the joint debt with a settlement of 14k is showing on both iva as £30k each (due to interest).??????

have we been miss sold it???

anyway spoke to dfd now and have been told it could take 4 to 6 months to end it officially with all the paper work and the various teams it needs to got though......

this all stems from our business going bust and lots of personal debt building up to survive.

its a long long story sorry!!-

any advise please.......

rog2

Hi brainy - glad you 'found your way' here.

Normally 'bankruptcy' would be an almost inevitable consequence of a failed 'IVA', but, after reading your post it may well be that you have either been mis-sold an IVA by DFD or, at best, ill-advised, throughout.

I think that you would, initially, be best advised to talk to one of the Debt Counselling Charities, to see exactly where you stand, legally. You can talk with any of the following charities (their advice is professional, impartial and free):

• CCCS - www.cccs.co.uk tel. 0800 138 1111
• National Debtline - www.nationaldebtline.co.uk tel. 0808 808 4000
• A specialist Debt Adviser at your local CAB

peachyprice

Are you sure you have £8k equity in your house, you need to be looking at a quick sale value, not what houses in your area are up for sale at.

To be honest £8k isn't a huge amount of equity for the OR to want if you were to be forced into bankruptcy, and if you have a family member who could help you out buying the beneficial interest the OR would settle for a whole lot less than that just to save the hassle of having to sell the house and all the associated costs. At the end of the day they don't want to make you homeless, they're only after any cash that may be offered.

To put things into perspective we went BR last March with £20k equity in the house, are still here, and haven't heard a word from anyone since. That's not to say they won't want the equity, they have a maximum of 3 years to act, but it's not the panic situation you imagine it to be, and you would have plenty of time to come up with a plan, especially with only £8k equity.