My bad history, help please

c1r1

Ok this is my history

turned 18 in early 2004 and thats when it all started

wasnt on a hi wage so to keep up with all my friends i used to use credit cards flexi loans overdrafts etc.....i think you get the picture

by september 2006 my debt was that bad (25k) i took out an iva

i continued to pay my iva for around 3 and a half years, until about feb 2010

at which point i could no longer handle it, i was only paying 240 a month but i was commuting over 100 miles a day 6 days a week and couldn't afford to change car. i had 30 pounds for food a week , and 10 pounds to play with.

i phoned my iva company when i was relocated but couldnt remember some password/or my previous postcode, so they wouldn't speak to me

its been a year now since i stopped paying my iva and i haven't heard from any companies except one of my old creditors since, and im thinking since they defaulted on 22/08/2006, what will happen?

will they just kept swept under the invisible carpet after 6 years (next year) or will the return to drive me back into depression

im getting back on my feet now and me and my fianc!e are wanting to settle down and start a family but this is haunting me :-(

thanks for reading

[Deleted User]

Talk to one of the debt charitis - national debtline, CCCS, CAB

Tixy

Hi

You were paying your debts right up to 2010, so your debts won't be statute barred next year. Your creditors have until Feb 2016 to locate you and chase you for payment. If they don't have you current address they could already have court judgements against you since your IVA failed.

As domino says talk to one of the debt charities.

CH27

Contact CCCS.

blt

Definitely contact one of the charities the others have mentioned. You're just going to constantly be looking over your shoulder if you don't, worrying about whether there'll be a letter or a phone call - which there inevitably will.

Why not look to start an IVA again at a realistic amount? I know it sounds harsh but this is money you've spent so you should pay it back - what you can do is make the payments affordable.

I've been in the same position as you, and I can honestly say that it feels better when you take control of the situation and pay it back.

Have you spoken to your fiance about it?

c1r1

Right I see, like I said I already paid 3.5 years work of my iva, the creditors agreed 33p per pound which to my calculations I have already clear. The remaining 18 months were just basically my iVA peoples fees.

Could I not just contact my old iva people and clear up the remaining 18months.

Also final question, if I've paid 3.5 years worth of Iva why on credit expert have my amounts owed not gone down :-( they all stil show the amount that I defaulted at in 2006 :-(

Thanks

Tixy

The problem is that the majority of the IVA companies fees are charged first, before your creditors start being paid. So you won't have paid your creditors at the proportion proposed in the IVA, and even if you had the fact that your IVA failed means the agreement is no longer valid.
So you will still owe them the full original amount, less any contributions paid through the IVA plus any interest, charges etc they have added on since your IVA failed.

I think its fairly common not to update a credit file whilst you are under an IVA.

You cannot continue with the failed IVA. Your options would be to start a new IVA, for a full period again with all the new charges etc that would involve (if your creditors would agree to it - they may be less likely to a second time) or to do something like a debt management plan or possibly to consider something like bankruptcy.

You really do need professional advice, and the charities will give you more impartial advice than if you go back to the company you had the IVA with.

I would suggest you do this sooner rather than later as the amount you owe is likely increasing all the time, and if one creditor has located you others will start to as well (especially if you have recently requested your credit file - as they'll now know your new address).

c1r1

What happens if I declare myself bankrupt? Could I still rent a house, would they take my car? Etc

Thanks

Tixy

You need to look into bankruptcy carefully and take professional advice on the subject - in fact a judge will not grant a bankruptcy application unless you can answer that you have had professional advice.

Renting a new house would certainly be difficult. The OR may well take you car. There are a lot more implications than these though.
Plus if you have a surplus of more than £10 a month after basic living costs you will have a income payment arrangement for 3years where you pay a proportion of your surplus towards your debts. Its not just a simple as being bankrupt and paying nothing towards these debts.

If you are advised that bankruptcy may be an option for you then this is a good starting point for understanding the process Look here first - Bankruptcy Help: Important topics, factsheets and links

bargainbetty

What happens when you go bankrupt depends on your personal circumstances, and the effects will be long term. You need to speak to the CAB, CCCS, Payplan or National Debtline immediately.

You need professional impartial advice, and you need it now.

Good luck

c1r1

That's, who would you recommend and do you have a number to hand. Thanks mate(s)