IVA to DRO, Has anyone done it?Hello,

Gbb78

Hello,


I'm not sure if this has been asked already, apologies if it has. I am wondering if anyone has ever failed their iva and successfully applied for a dro?


I have been in my iva since July 2011, my original debt was for 14800. I made my last payment in August, I had a 3 month break and failed to make December's payment. The national debt line told me I qualify but my iva company said my creditors are entitled to backdate interest and charges which most certainly would take me over the 15000 I would have thought?


Any help and advice would be very much appreciated.


thanks

UpToMyNeckInIt

...I'm no expert on DRO's, but you could go bankrupt, even if you did not qualify for a DRO (albeit that your credit record will then be damaged for another 6 years from the start of your BR).

Out of interest, why did you go for the IVA in the first place? Do you have a house or other assets that may be at risk with going BR?

Your IP is correct in that if the IVA 'fails', you will be back to square one, and possibly with statutory interest and IP fees added on top (less your repayments made to date), which will mean that you won't be able to consider a DRO.

Lot's of help and support on this forum if you need it.

Good luck.

National_Debtline

Hi Gbb78

It's technically possible to fail an IVA then pursue a DRO - but unusual, if only because not many IVAs tend to be for debts of <£15K.

I'm assuming that you don't own any assets of note, otherwise we wouldn't have even touched on DRO when you called us.

As UTMNII says, the debts may well have crept over £15K now with backdated interest which would rule DRO out. There's no real difference in how your credit file would be affected by either DRO or BR, but obviously BR is a good deal more expensive - between £525-£700 as opposed to £90.

Good luck

Dennis @NDL

Gbb78

Thank you both for the replies. No I do not have any assets other than a car that is worth £900. When I finally faced up to my problem and sourced help - the help is who my IVA is with now, made out that the IVA was my best option as although I would have a portion of the debt written off I would be paying off as much as I could off my debt which is what I wanted but now I am not in the position to. National debt line have encouraged me to fail my IVA and apply for the dro which does seem like the best option - if I qualify. If I were to fail the IVA and apply for a dro immediately would creditors have time to back date charges? I have checked my credit report from Experian, Exquifax, call credit and noddle and all are showing my current account that is included in the IVA as being settled and the store cards and catalogues I had have clubbed as one amount so the debt on my credit report is showing as £11800. is this a mistake on the credit agencies part does anyone know?