IVA Offer help pls

Anondebtadvisor

Has this taken 12 months to get this far with DFD? That is shocking!

Have you asked them how they come to the £103 per month? Have they held a variation meeting with creditors? They would have to, to agree reduced payments.

Agreed by the court!! what a load of balony.....

simpywimpy

we have phoned them and asked for everything in writing. they said they had a meeting with creditors and the court had agreed to this new arrangement.

Anondebtadvisor

To have a meeting of creditors they must have your consent, as it is your offer - was consent and signature given?

simpywimpy

I asked my friend and he gave verbal consent to a meeting being held over the phone however, the offer was to accept payments to date (from him) but they have come back with this £103pm which means he hasnt enough cash to survive on after expenses.

longtermplanner

dfd don't seem to have done a great job with communications here - it has taken a ridiculous length of time and the figure of £103 should not have been plucked out of thin air. However, an IVA for that amount of debt running into major problems after only 2 years payments is not an easy situation to resolve.

Can he afford to live where he is if his unsecured debts are cleared? The fact that he was originally paying £400 a month to an IVA and his income has fallen by £900 suggests no... in that case he needs to let the IVA fail, move somewhere more affordable, hand bank the keys and go bankrupt.

If he can afford to stay where he is, t may be that your friend's best option is to let the IVA fail, go bankrupt, and then you could offer to buy the negative equity from the official Receiver so he could keep the house.

But if his financial position is not sustainable (And what when interest rates rise?) then it's better to bite the bullet and move.

simpywimpy

He is unable to go bankrupt due to his job unfortunately and the house is in negative equity.

simpywimpy

Does anyone know if there is a code of practice that is easy to read about IVA's where we can quote that DFD haven't acted in a proper manner.

longtermplanner

Sorry, but you seem to have missed my points.

Yes dfd haven't acted / communicated well. But less than half way through an IVA, a major problem is very likely to result in the IVA failing. That is the nature of IVAs and over 20% of them do fail. Complaining about the way dfd have acted is not going to solve your friend's underlying problem.

Can he afford to stay in his current house with his reduced income if he makes no payments to his debts? Losing £900 a month income when he was only paying £400 to the IVA makes that sound like a NO to me. If this is the case, this is the problem that has to be resolved.

What is his job? I have come across many people that thought they couldn't go bankrupt because of their employment when this was not the case.

simpywimpy

Sorry I think I did misunderstand. He can afford to stay where he is but will really struggle if he has to start another payment to the debt of £103pm. He works for the civil service and has looked at his employment code and would lose his current position.

Despite the £900 a month drop, his car repayments have also come to an end now and I think they were around £200. He also cut other things down too but still ended up with a slight minus figure which they seemed to accept over the phone, saying they would meet with the creditors and try to get an agreement to accept payments made already. The first he heard was that they had agreed to this new amount and wanted to set up the standing order.

longtermplanner

A civil servant? That would be highly unusual. Suggest that he discusses the matter with his union if he is in one. There may be a clause in his contract but that doesn't mean that it would be invoked. I think there is for example for police, but in practice you don't lose your job unless there are other disciplinary problems.