Breach of IVA

zmrstk002

Hi there, I apologise for the long post to start with. But I am looking for help on a few questions that I have.

To start a bit of back ground information, I a considerable amount of debt with 5 creditors, which total around £42,000.

I started in a IVA back in July 2009, for which all my creditors where included. But i am now in a position where I find myself in breach of the terms. This is now into the 3rd month. This is due to employment issues were due to market conditions and shutdown we have been working reduced hours. To make things worse it is a contract role rolling 6 months. Which is due to end in mid May and so far look like it will not be extend. This would now mean that i would my income would be JSA only. I have brought this to the attention on my IP, who has been helpful. But is now saying that a creditors meeting will have to be called, and failure of the agreement would be most likely.

So my first question would be, what is the normal process to a creditors meeting, and how long do they take to arrange?

In my mind, I have already resigned my self to this happening, and I am now looking to consider my options moving forward. These been either bankruptcy or asking my creditors to wipe off my debt. I know that this sounds unlikey, but looking on different websites it does seem that people have tried it. If i was to make my situation clear and if I was on JSA, would this be something creditors would go for? As in the past i have always tried to be clear and up front with them, with constant commination about my situation.
I also wonder since the debts are from 2009 how long they stay on my credit file, and can the me enforced for? In other words would it be possible to wait out the next 2 years or so and have the debt cleared this way?

Other options I believe I have would be a DMP or another IVA, but given I have spent the last 4 years trying to get round these issues. I would not like to start 5 years again from dot 1. Failing this bankruptcy would bee the best option i believe. Given the fact that I don't own my home and currently live (rent) with my friend. I am thinking that bankruptcy would not have that much impact on me, and would take less than a 5 year term of a IVA ect? Although i am new to the process so looking for advice for people who have gone though it.

I would also welcome any advice and feedback on dealing with creditors chasing. As i am assuming that after the meeting has taken place creditors will be calling again. I know a lot of the time threats are made in regards to court and bailiffs. But given then fact that I am rent my house which I share with another person, what would the bailiffs be able to take should the come round?


As above I am sorry for all the questions and the long post. But I am just trying to gather as much information as possible and listen to other peoples experience. Which will hopefully allow me to get though this situation and get on with my life.

Regards

sniggings

zmrstk002 wrote: »

Hi there, I apologise for the long post to start with. But I am looking for help on a few questions that I have.

To start a bit of back ground information, I a considerable amount of debt with 5 creditors, which total around £42,000.

I started in a IVA back in July 2009, for which all my creditors where included. But i am now in a position where I find myself in breach of the terms. This is now into the 3rd month. This is due to employment issues were due to market conditions and shutdown we have been working reduced hours. To make things worse it is a contract role rolling 6 months. Which is due to end in mid May and so far look like it will not be extend. This would now mean that i would my income would be JSA only. I have brought this to the attention on my IP, who has been helpful. But is now saying that a creditors meeting will have to be called, and failure of the agreement would be most likely.
best ask IVA questions on the IVA board, link to it is at the top of this page but yes, you have to have excess income to pay an IVA, on benefits this is not possible so will almost certainly be cancelled.
So my first question would be, what is the normal process to a creditors meeting, and how long do they take to arrange?
as above ask on the IVA board but you would almost be wasting your time, think about using your time to look into BR or other options, getting advice from CCCS or CAB should be your first step.

In my mind, I have already resigned my self to this happening, and I am now looking to consider my options moving forward. These been either bankruptcy or asking my creditors to wipe off my debt. I know that this sounds unlikey, but looking on different websites it does seem that people have tried it. If i was to make my situation clear and if I was on JSA, would this be something creditors would go for? No to be honest, why wipe your debt off when they can sell it to a 3rd party and at least get some money, the 3rd party would then pester you, best get it sorted now, they may reduce the amount they are asking for if you come to an agreement but very rare for a debt to be totally wipe off. As in the past i have always tried to be clear and up front with them, with constant commination about my situation.
I also wonder since the debts are from 2009 how long they stay on my credit file, and can the me enforced for? In other words would it be possible to wait out the next 2 years or so and have the debt cleared this way? I believe but not sure on this, if left unsettled the debt can stay on your file for ever more and can be chased for ever more, if you were to go BR then it would be cleared after 6 years, what you may be thinking of, is a debt is not enforceable after 5 years, if no contact has been made between you and the creditor, unforceable means they can not use the court process to enforce payment but they can and still will chase you and as said, will still be on your record as an unsettled debt but as said I'm not sure on this. I would though recommend you sort the debts out now rather than trying to go down this route.

Other options I believe I have would be a DMP or another IVA, but given I have spent the last 4 years trying to get round these issues. I would not like to start 5 years again from dot 1. Failing this bankruptcy would bee the best option i believe. Given the fact that I don't own my home and currently live (rent) with my friend. I am thinking that bankruptcy would not have that much impact on me, and would take less than a 5 year term of a IVA ect? Although i am new to the process so looking for advice for people who have gone though it.BR can be all over with in as little as one year, or 3 if you have extra income over your living expeses, then you pay only your excess income for 3 years, then you're free, but BR does stay with you for life as it is always recorded and checkable, and you do have to inform a lend if ever asked have you been BR, also getting a mortgage will be much much harder and some jobs, not many, not possible to do if ever BR, the biggest downside is getting credit again and a mortgage.

I would also welcome any advice and feedback on dealing with creditors chasing. change your phone number and get your debt problem sorted, it's as simple as that, you owe them money they will not stop chasing you or sell your debt to someone else and they will chase you, until you sort it, wouldn't you chase someone if they owed you money As i am assuming that after the meeting has taken place creditors will be calling again. I know a lot of the time threats are made in regards to court and bailiffs. But given then fact that I am rent my house which I share with another person, what would the bailiffs be able to take should the come round?
first off, do not let them in, it is very very rare a bailiff will have a warrant to force entry, the only time they can force entry is if you have already allowed them in once, then the next time they come they can force their way in, so golden rule, never allow them in, they can also walk in if the door in unlocked or a window is open but have to leave if asked, so make sure the doors and windows are always locked, once in and they access your belonging if they are given enough time, their next visit they can force their way in, so as said do not let them in, if you do not follow the golden rule, then once in all they can take is what they believe is yours, even if it doesn't, your friend would have to prove it's his, they can't take things like beds etc but can take TVs etc and your car or friends if as said they think it's yours.but taking your stuff is not their aim, it's for you to agree a payment plan or pay in full, selling your stuff will most likely not bring in much money, they know that and are just putting pressure on you to pay. So don't stress, as before they take your stuff they need to get in you will be given a few chances to agree a payment plan or settle your debt in full.

As above I am sorry for all the questions and the long post. But I am just trying to gather as much information as possible and listen to other peoples experience. Which will hopefully allow me to get though this situation and get on with my life.

Regards

Friendly tip, try and ask 1 or 2 questions per thread, you will find you get more replies, don't worry about starting a new thread, start as many as you like.

Make that phone call to CCCS or CAB and get the ball rolling, you will be surpised at how much stress it relieves just doing that.

Bella_Smythe

is that tru that if Bailiffs have been in your house once they can force entry the next time? seems a bit off? how far can they go, i mean if you put your arm out, say, to bar their entry are they allowed to forcibly push you out of the way?

sniggings

Bella_Smythe wrote: »

is that tru that if Bailiffs have been in your house once they can force entry the next time? seems a bit off? how far can they go, i mean if you put your arm out, say, to bar their entry are they allowed to forcibly push you out of the way?

Yes, The first entry has to be a peaceful entry without a request to leave, so no they can in no way push past you, or a foot in the door etc etc and if they should get in, when asked to leave they have to comply, but once in and if they are given the time to list your stuff for removal, then yes the next visit they can force entry, which in most cases would be with the police present to make sure the peace is kept, if you were to block their entrance this time, the police would likely arrest you so they could gain entry, as said though, the first time has to be without force and no request to leave or with permission, follow the golden rule i.e no entry ever and you will be fine, don't fall for the "can I just use the toilet" or "ok I'll go but just let me in to sort out a payment plan or fill in this paper work to say I've been" etc etc as then you have just given them a free invitation to return anytime they like.

zmrstk002

Thanks for the feedback everyone.

With regards to bailiffs I hope that it will not come to that, as i say my IVA has not ended yet. But i am trying to prompt any problems that may happen.

Am i correct in thinking that before the bailiffs come round, they need a court order? Plus before then my creditors will contact my other ways i.e phone letters? The reason i say this is because i alway keep my creditors informed of my situation, and even make token payments should my situation allow.

All i am worried about is the time i will take me to go from the end on my IVA to BR, which i am hoping will not be more than a few months.
During this time, if i keep my creditors informed, would they be much chance they would go down the bailiff route.

Thanks again

sniggings

Yes they need a court order, so just watch out for any court letters, not letters pretending to be from a court but real ones, you could even go to the hearing and the judge may order a payment plan etc and not a warrant, remember a warrant does not auto allow a forced entry, only the taking of goods, they need to get in first though

Token payments are good, as it shows a judge you are trying, whether telling a creditor your plans will delay bailiffs is open to debate, it can make them put more pressure on, you need to play that one by ear, the best thing to delay bailiffs imo is to keep talking to them, ask for help, ask for a payment plan, even if the plan fails, ask for another, this all buys you time to save for the BR fees.