I've really cocked up

Queenb_2

I have been in an IVA since 2006 and pay £330 a month for a debt of £33,000. Anyway I was in a good job which I lost and now I am in a much lower paid job. I am finding it hard to live and I have been diagnosed as bipolar.

Now I have asked my IVA to lower my payments and they have set a sum of £210 to me and they will be holding a meeting to my creditors and seeing what they say.

Heres where I am a ***k as I did not disclose to the IVA that I had a credit card with Barclaycard and now the debt with them has run up to £7,000 and I am paying off as much as I can but its not shifting. I am eating bread to try and save money but the amount stays the same or is going higher. I have cancelled the payment protection on the card.

Anyone else been an idiot ?

Nargleblast

The credit card should have been included in the IVA proposal at the start. I can only advise you to come clean with your IP about it and see what they say. Sorry I cannot be any more help in this but I am sure other more qualified people may be along soon.

MIVAA

Not much else than can be said to be fair Nargleblast

I'm sure Queenb will agree that this is the only real course of action available to her.

One thing is for sure, it's not the first time this has happened and I'm sure it won't be the last.

Your IP will have a couple of option open to them, and who can say which option they may choose, but they could either try to get the extra debt included into the arrangement via another variation meeting. (In simple terms, this is where they ask the other creditors whether they are prepared to allow Barclaycard to share the dividend with them.)

or they could consider the extra debt as a breach, and fail the IVA.

Don't forget though that the IP will be quite keen to keep the IVA going if possible, as they have already proved by getting a variation already to reduce your payments, so fingers crossed.

MIVAA

Queenb_2

Following my previous posting regarding not declaring a credit card I held with Barclaycard when I started my IVA because I am very stupid and have bi polar.

Well I bit the bullett and told Payplan who said the following:

The supervisor will not be in contact with you regarding the failure. You will receive a copy of the failure certificate in due course.

So I have failed the IVA - anyone know what happens now?

snicz

I have found the following info online. I really hope it helps and hope you still have a nice crimbo.

If an IVA fails the IVA supervisor will issue a certificate of non compliance stating that the IVA has failed and reasons for the fail.
An IVA may fail because:-

• The person has not kept up with the regular payments under by the IVA
• The person has failed to supply information
• The person has failed to comply with the general terms of the IVA

Refer to the IVA proposal if an IVA fails

The IVA may state the supervisor must petitioner for debtors bankruptcy or it may just state that the person is back to square one. If this is the case the debtor cab either consider at a debt management plan, an Informal arrangement, or even wait a few months and then try an IVA again.
If an IVA fails, then the actual IVA proposal will need to be referred to so that the 'IVA fail' procedure can be verified. Almost all IVA proposals now include a failure clause if you get over 2-3 months in arrears with payments.
Once an IVA has failed and all the creditors have been informed of this fact, the debtor would either have to start a new IVA with another 5-year payment period or come up with an alternative method of resolving your situation such as; Bankruptcy or Debt Management Plan.
IVA failure by The IVA Insolvency Practitioner

If an IVA fails there is a risk that either the Creditors or the Insolvency Practitioner will petition for your Bankruptcy. Normally sufficient funds will have been put aside by the Insolvency Practitioner to petition for Bankruptcy should the need arise. If a bankruptcy petition is presented, then any assets you may have could be at risk, as could your job. It is essential that you seek advice should this happen.
In most cases when an IVA fails it will be because the debtor has stopped making repayments, but insolvency practitioners sometimes pressure clients into unrealistic deals in the first place. In some cases we have seen people being put on IVA plans that are simply too strained and they can't make the repayments.
A creditor may say that they will only accept a certain amount and the insolvency practitioner will push the debtor to meet that target. Should the IVA fail the debtor can still be made bankrupt. If this happens, the costs of the IVA will be added to the debts.
If you have would like know what happens if your IVA fails please telephone 0800 074 6918.

Queenb_2

Thank you for your reply.

I am now seriously considering BR but does anyone know if Payplan can make me BR? They have failed the IVA due to the undisclosed credit card so do they now wash their hands of me and leave me to the people I owe to? I am really confused.

Also I cannot afford to pay the minimum due to Barclaycard Visa which is £150 so should I write to them and tell them everything and offer them a token payment?

Any inputs would be gratefully received.

Charco_2

token payments to your creditors would seem like a sensible idea! Dont pay money you cannot afford!

NekoZombie

Agree with BAAB. There's no point in making any further payments as you will be petitioning for BR very shortly. Keep the money for an emergency...like potentially having to pay your BR fees if Payplan let you down....

Queenb_2

Thanks for the words of advicethough i dont think i was very clear to my problem. Basically I have the IVA and neglected to tell them of the credit card i still have which i owe £7000 to. I have now told Payplan of this credit card and they have said they will be sending me a failure certificate - though they said this on the 22nd December and I have not received anything nor heard from them.

Now I cannot afford the minimum repayment on this credit card which is approx £150 and I dont know whether to send the credit card a token payment with a letter - bearing in mind they have no idea of the IVA in the first place. Does anyone know what form the letter should take? I am terrified the credit card company will do something. Any help would be much appreciated.

peachyprice

Sorry, I don't think you understood the advice above.

Now that your IVA has failed you will either a) be petitoned for BR by payplan or b) have to petition for your own BR.

Once either a or b above happens ALL debts will be included in your BR, not just the ones in your IVA. Therefore there is no point in paying Barclaycard a penny as you'll be heading for BR very shortly.

There is nothing Barclaycard can 'do' other than follow the usual debt collection procedures, your IVA is irrelevant to them.

HTH

debtinfo

Although the options Peachy set out are the most common result, i just wanted to point out that you could try to start a new IVA with all debts included. Obviously this would need to be agreed by the creditors and would start the full term again