IVA Breech

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

UpToMyNeckInIt

Without knowing your full circumstances, it is always difficult to advise.

Hindsight is a wonderful thing, and I wonder why you did not consider BR initially?

Certainly asking your creditors to accept payments to date as a 'full and final' offer might be viable. The likelihood of it being accepted depends I guess on how much you have already re-paid, if this is your best offer, and if anything more can be gained by making you BR.

Personally, I think BR on the face of it, does not look like a bad option for you if it gives you a clean slate.

This board has a regular poster who deals with people who have failed IVAs. Hopefully they will pick up on this thread, and may be able to offer some useful advice.

Good luck. Hope it all works out for the best.

zmrstk002

I was told that BR was the best option from day one. But at the time wanted to try and pay some back, afterall i borrowed the money. But in hindsight i now find myself 4 years down the line ad back at dot 1. So think i need to dk what is best for me now, with BR looking the best option. Although given the fee needed i will need to save for this. While iam doing this the last thing i need is creditors chasing and balifts calling.
first thing i need to do us await the creditors meeting outcome. How long do these take ti process after my breech in Iva?

thanks for the help

UpToMyNeckInIt

Most IVA customers I've come across, who decide to terminate the agreement by going BR, tend to save for the £700 fee by stopping IVA payments.

I believe you have received advice here regarding how to deal with doorstep collectors (tell them to take a hike - in the nicest possible way). Any creditors phone - just tell them you are in the process of arranging BR proceedings, and take it from there.

Also worth a chat with your local CAB, and the debt charities: Stepchange and National Debtline. Once they know your exact circumstances, they should be able to offer you more advice.

FiatFan_2

I am assuming having missed your last 3 months payments the IP is now looking for these payments to be repaid in full before considering breach of iva or have they already said it's in breach and started proceedings?

Assuming all previous payments have been met, could your IP not assist by way of emergency payment break for the previous 3 months (i believe 3 months is allowable under certain circumstances) then consider a future payment break (upto 6 months) to allow you to find work again? These breaks would be added onto the end of your current iva period.

Not sure how viable that is but could open discussions since your so close to the end.