I lost my job and my IVA failed, what can i do?

The_brizzles

I am currently in a nightmare situation.

I have around £20,000 worth of debts on both credit cards and loans. I entered into an IVA around 2 years ago and was very mis-sold! Initially I was paying £200 a month, however after 3 months I lost my job. I was then advised my IVA had failed.

During the set-up procedure I was not made aware of the inflexibility should such a problem 'losing my job arise' and feel I am worse off than when I started.

I then started receiving letters from creditors, and from the information I've read the only alternative to a failed IVA is bankruptcy, which I really just can not afford to do in the long run.

Currently I live in a council flat and receive housing benefit and job seekers allowance. Would it be possible for me to change from an IVA to a DMP instead??

Also what are the other options for somebody in my situation with no job and a failed IVA?

Any help is appreciated.

Penelope_Penguin

The_brizzles wrote: »

Currently I live in a council flat and receive housing benefit and job seekers allowance. Would it be possible for me to change from an IVA to a DMP instead??

IVAs are best suited to people who have somethign to protect - usually a home or a job. What do you do for a living - could you continue to do it if you filed for bankruptcy?

As you live in council accommodation, unless you have something else to protect, BR or DMP might be a better route in your case.

If your IVA fails, you need a certificate to that effect from your IP, and then you can pursue a different debt management route. You can, of course, investigate those options in th meantime

The_brizzles

Penelope_Penguin wrote: »

IVAs are best suited to people who have somethign to protect - usually a home or a job. What do you do for a living - could you continue to do it if you filed for bankruptcy?

As you live in council accommodation, unless you have something else to protect, BR or DMP might be a better route in your case.

If your IVA fails, you need a certificate to that effect from your IP, and then you can pursue a different debt management route. You can, of course, investigate those options in th meantime

Thanks for your reply.

At the moment I'm unemployed but job hunting. Bankruptcy isnt an option as I can't afford to have it hanging over me for 6 years. I think a DMP thats free with someone like CCCS or payplan is my best option..

I dont suppose there are ways to reclaim funds that have been paid into a failed IVA?

FoggyBrain_2

Hi -- the time factor of BR isn't really relevant. The IVA (failed) will remain on your record in any event for another 4. Missed payments and arrears will remain on there until they are dealt with and then 6 years afterward. This will be the case in a DMP also, which could drag on for a decade or more. So, basically, your credit record will be -- is -- shot whatever route you take.

With minimal income you should not get a payments order with BR, as I imagine all of your income will be taken up with allowances. There is a good chance you will be discharged early and then be debt free.

Penelope_Penguin

The_brizzles wrote: »

At the moment I'm unemployed but job hunting. Bankruptcy isnt an option as I can't afford to have it hanging over me for 6 years. I think a DMP thats free with someone like CCCS or payplan is my best option..

If you pay into a DMP whilst on JSA, you're unlikely to pay off your £20k in less than 6 years, and the debts will stay on your file for longer than that. Am I missing something here?

spaceman5

Penelope_Penguin wrote: »

If you pay into a DMP whilst on JSA, you're unlikely to pay off your £20k in less than 6 years, and the debts will stay on your file for longer than that. Am I missing something here?

and the fact that they entered into an iva, do they not realise that thye stay on the file for 6 years also, regardless of whether it fails/ges paid over the full 5 years/or gets paid early with a f & f offer