IVA with £150,000 debt! (mis-sold IVA?)

bluebaron

Hi,

I sorting out my brother finances and basically its a mess!

He earns £50k a year so all good there. However at 37 he has no assets and big debts.

He took out an IVA 4 1/2 years ago reducing his debt from 150K to 50k. He has just cleared this, but has run up anothe 50k of debt elsewhere!

Basically i think he was mis-sold his IVA and should have declared bankrupcy. Any-one had a similar experence or thinks i my have a case to at least get his IVA fees back?

Thanks

dalip

Dont think you have much chance as a) he had his debts reduced by 2 thirds b) his income was enough to do this c) he took out further credit which is a big no no if doing an IVA,DMP or bc. Sorry maybe post on the IVA thread.Dx

fiveyearplan

If he cleared £100k in 4 1/2 years then cleared the final £50k and now a further £50k in debt, sounds like he is still robbing peter to pay paul. Your brother would benefit from getting some real budgeting advice and learning to live within his means.

I'm not trying to be patronising but he is always going to find himself in this situation if he doesn't change his spending behaviour.

philnicandamy

Sadly reading posts I agree with FYP and dalip....there are loads of people out there willing to give good advice for free...

JCS1

If he does decide on BR, then he will be investigated by the OR. He has taken out further credit whilst in an IVA, and therefore knowingly insolvent.

He does need to be prepared for this happening and the prospect of a Bankruptcy Restriction Order/Undertaking being given.

bluebaron

Thanks for your advice.

Hes doing much better now i've repaid £10k so far this year and i control all his money. There's light at the end of the tunnel.

peachyprice

At present there is no recourse for being allegedly mis-sold and IVA.