Advise on old debt and IVA please

deano19792014

Hi all,

Well this is my situation. back in 2008 I entered into an IVA after struggling with my debts for a long time. I managed to run up debts totalling £28000 with Nat West bank. It started in 1999 when I was young and foolish and took out a small loan. When this loan was almost paid the bank offered me another to settle what was left and leave me with some cash in the bank and settle a small overdraft. I accepted and as time went by I always paid on time and was offered credit cards and a larger overdraft. As is the case when you are in your teens and early twenties I thought all this extra cash was great and rarely said no to thier offerings. Before I knew it due to the constant consolidation offerings by the bank my debts soon began to take up the majority of my disposable income and more thsn I could afford along with the cost of living. At one point I was earning £1000 a month take home pay and giving the bank £360 of it. My fault I know but easily done when you need the money and its being dangled under your nose!! What I didnt realise at the time I was taking all these loans and renewals was that the bank was not only earning from the intrest I was paying but they sold me PPI worth thousands. At the time I was told it was compulsary to be able to get the loan and so I took it. I think this may well have pushed my debts to an unmanageable level.

Now although I know it is ultimatley my own fault that I amassed such a huge debt the bank certainly didnt help! I paid the IVA for around 12 months but eventually found this unmanageable too. I asked the IVA provider to lower the payments but was refused and so I cancelled the direct debit and paid no more. By this time the stress of the debt was making me ill and I ignorantly just put it to the back of my mind and tried to get back on my feet. I waited for my creditors to make contact again following the failure of the IVA but they never did contact me. I recieved a letter from the IVA provider saying the IVA had been terminated.

This was in 2009. We are now in 2014 and still I havnt been contacted by Nat West regarding the thousands of pounds I still must owe them. I checked experian and sure enough the default is still sitting there on my account. The section that shows any debt management, IVA or bankruptcy in my credit report shows the IVA as satisfied in 2009?? I dont get it, the IVA was failed yet shows as satisfied?? So firstly why have Nat West not CCJ me? why is the IVA showing satisfied and finished 12 months after it started and what will happen next year when the 6 year period since default passes?? Can the bank still enforce the debt or is it statute barred?

Any advice is much appreciated

Thanks

Foxy-Stoat_3

If you fail an IVA they have the option to make you bankrupt. Maybe you could start the PPI refund process and see where that gets you.

Or you could wait until 6 years after the last defect date to see if this has dropped off your record and start again.

Anondebtadvisor

It sounds as though your IVA has been marked incorrectly as satisfied which is why your creditors have not chased you - as far as they are concerned and anyone else who credit checks you, you have completed your obligations under the IVA.

This is not uncommon, I see this regularly - keep your head down and the IVA and associated defaults will fall off in 2014.

MisterBaxter

Anondebtadvisor wrote: »

It sounds as though your IVA has been marked incorrectly as satisfied which is why your creditors have not chased you - as far as they are concerned and anyone else who credit checks you, you have completed your obligations under the IVA.

This is not uncommon, I see this regularly - keep your head down and the IVA and associated defaults will fall off in 2014.

As an IVA is lodged with the Courts does it work the same way as a CCJ in that the statute barred rules wouldn't apply?

May be worth finding out as although the details may drop off credit report it may not prevent debt being pursued if the creditor spots their mistake at some point.

Anondebtadvisor

Statute barred wouldn't apply as the debts would have been acknowledged
but i think you are missing the point, which is as far as the creditors are concerned the IVA is marked as satisfied and hence the debts discharged, which is more than likely the reason the op has not had contact from them.

It is clearly a mistake on behalf of the court, or IS Register but nevertheless one in the OPs favor.

MisterBaxter

Anondebtadvisor wrote: »

Statute barred wouldn't apply as the debts would have been acknowledged
but i think you are missing the point, which is as far as the creditors are concerned the IVA is marked as satisfied and hence the debts discharged, which is more than likely the reason the op has not had contact from them.

It is clearly a mistake on behalf of the court, or IS Register but nevertheless one in the OPs favor.

The last time they had any contact or made any payment was 2009 so under normal circumstances would become statute barred in 2015. I appreciate that the IVA is marked as satisfied which is why there has been no chasing but at some point could a review of accounts at the bank flag it hadn't been paid. I still get annual statements from a creditor that was part of an IVA, they know the matter was dealt with through an IVA but they still have a record of the debt. I suppose my point was has it really just disappeared or is it just 'mislaid' and if so would statute barred rules apply once 6 years are up.

buckswizz

Hello peeps I may be jumping the gun or even a howitzer here but osbornes budget of today got me thinking.Here I am 6 months only into my iva, and when I started it my insolvency provider asked me if I had a frozen pension - I said I had and they asked for details which I said I couldn't immediately supply but they said ok don't worry about it and never asked me again. Now I am 56 and I have asked about unfreezing this pension some years ago only to be told under existing rules I couldn't. But now, as I understand it, if you are over 55 you woill have the right to cash it in if it's below 10 or 11k (which mine is)

So to come to the point, if my ip remembers about my frozen pension can they insist I unfreeze it and pay it in or can I refuse and say. That I want it to keep growing and mature in about 10 years time when I actually retire? Maybe when iva providers digest this change in pension rules they might be writing to everyone over 55 to press them to access their pension pot if they can ?- its a worry tbh

longtermplanner

. They could originally have made it a condition of your IVA being approved that you agreed to do this, but now I don't think they can make you do this.