My IVA has been TERMINATED... help????

Fweckles

Hi Guys,
Am hoping someone can help me. I have been in my IVA since last summer and been paying £530 per month, without fail. However, in June of this year I was made redundant, and as a result ended up in turmoil. I won't go into the lengthy details but basically I received a lump sum payout (not major) and was asked to pay this into my IVA. However, upon reading the papers it seems that the incorrect addendum was sent to the court and as such I disputed the fact that I had ever agreed to pay any windfalls into my IVA. As such, and to cut that long story short my IP breached me, despite my arguments, and today my IVA has been terminated. The creditors meeting was last week and they voted 100% against making me bankrupt, but 100% in favour for the IVA to be terminated. My IP's proposal/report to my creditors made no comment upon why I refused to hand over the redundancy pay, she just said I had breached the IVA by not paying the money's over. Anyway, I am now left with £52,000 worth of debt, 5 creditors and I don't know what they will want to do/how they will approach it... Can anyone advise me on the best way forward please. The only asset I have is my second hand car (which I need for work) and I live in rented accommodation. I have secured a new job though (thank god!)...My 5 creditors are Max Recoveries Ltd (acting for Morgan Stanley, Barclaycard & MBNA), RBS (Tesco), First Direct if that helps. Any help gratefully appreciated as I really don't know where to go from here..... Thanks in Advance

spenderblender

Hi Fweckles. It has been such a long time since I have been on these boards. I have sort of been in your position with DFD with my IVA. I stopped paying them last January as I simply couldnt afford to pay them what they wanted.
My IP also took it to the board of creditors to see what they wanted to do and my IVA was failed. I am now waiting to see what happens next. I am certainly not going to contact them and I am getting on with my life.
I do know that I will have to file for BR which I should have done in the first place really but, I have the money ready for when I have to do it.
Please feel free to read my journey "my BR Diary" which will give you an insight as to the timescale involved when an IVA has failed.
Good luck and I hope it all works out for you.

shibbles

My IVA was terminated about 2 years ago as i could no longer afford the repayments, I didn't know what action to take so I buried my head in the sand and waited to see what happened, foolish I know.. Now I'm receiving letters from 'Fairfax Solicitors' for what i assume is one of that debts I had covered in the IVA .. the letter says a debt from Barclaycard so I know that could cover a whole array of companies....But with it being so long, the IVA about 2 years and the actually debt at least 6 is there anyway I can dispute having to pay ...or should i just try and negotiate a monthly payment ??
As yet I have made no contact at all with the company, but today they started to ring me in work..

spenderblender

shibbles it is up to you really. Do you think you can afford to come to arrangements with everyone you owe money to as now one has been in contact probably more will follow.
I am only waiting because I know when the time comes that I start getting harrassed that I will go down the bankruptcy route as I can not afford to set up payments of any reasonable size to my creditors.

shibbles

I could maybe pay one, nothing substantial, but if like you say more would follow I would struggle and be back to square one.. do you think I should keep ignoring them and see if others do follow? Or get in touch? Thanks

thecableguy12

Fweckles wrote: »

Hi Guys,
Am hoping someone can help me. I have been in my IVA since last summer and been paying £530 per month, without fail. However, in June of this year I was made redundant, and as a result ended up in turmoil. I won't go into the lengthy details but basically I received a lump sum payout (not major) and was asked to pay this into my IVA. However, upon reading the papers it seems that the incorrect addendum was sent to the court and as such I disputed the fact that I had ever agreed to pay any windfalls into my IVA. As such, and to cut that long story short my IP breached me, despite my arguments, and today my IVA has been terminated. The creditors meeting was last week and they voted 100% against making me bankrupt, but 100% in favour for the IVA to be terminated. My IP's proposal/report to my creditors made no comment upon why I refused to hand over the redundancy pay, she just said I had breached the IVA by not paying the money's over. Anyway, I am now left with £52,000 worth of debt, 5 creditors and I don't know what they will want to do/how they will approach it... Can anyone advise me on the best way forward please. The only asset I have is my second hand car (which I need for work) and I live in rented accommodation. I have secured a new job though (thank god!)...My 5 creditors are Max Recoveries Ltd (acting for Morgan Stanley, Barclaycard & MBNA), RBS (Tesco), First Direct if that helps. Any help gratefully appreciated as I really don't know where to go from here..... Thanks in Advance

You need to check the modifications you signed once the iva was accepted, in nearly all cases the windfall is mentions or ask them to send you proof of your singned mods if they cant then you could say you didnt agree to it.

Walter_J

Fweckles wrote: »

Hi Guys,
I have been in my IVA since last summer and been paying £530 per month, without fail.

Anyway, I am now left with £52,000 worth of debt, 5 creditors

The only asset I have is my second hand car (which I need for work) and I live in rented accommodation.

.My 5 creditors are Max Recoveries Ltd (acting for Morgan Stanley, Barclaycard & MBNA), RBS (Tesco), First Direct if that helps.

Am I missing something? Bankruptcy would be an infinitely better option. I don't understand why you ever went into an IVA.

Charco_2

There's any number of reasons people would try an IVA. Trying to at least pay some of the debt would be a start! With a disposable income of £530 he would definitely have been paying money into the bankruptcy anyway and NONE of it going to his creditors.

As for not handing over your lump sum, you should have negotiated with your creditors through your IP. Asked for the lump sum payment to be considered as a Full and Final payment on your arrangement and IF your creditors agreed then pay it in... I can understand why you wouldn't want to pay it in only for your IVA to fail the following month because you'e no income but wrong addendum or not, that's how an IVA works.

I am sorry this has happened to you and I hope you can find gainful employment soon, when you do, why not come back and see what help or options might be offered to start sorting out the debt!