Failed IVA, what next

Dock_Boy

Hi, the facts, advise welcome please.
Entered IVA, 17/03/08 with debts (unsecured) of £44,951 (11 creditors in total)
12th December 2012, redundant and advise IP accordingly & formal breach notice issued, advising termination of IVA within 1 month of the letter.
23rd April 2013, copy of notice to creditors received from IP, the motion being that 'funds paid to date are accepted in full & final settlement'
23rd May 2013, motion rejected.
3rd September 2013, further breach notice issued.
5th November 2013, Certificate of Termination received from IP.

I feel very strongly that my IP did not even follow their Standard Conditions when notified by me in Dec. 12

In total I paid £26,542 into the IVA of which £19,862 was distributed to creditors. 5 of the creditors are now pursuing me and I do not know where to turn?

UpToMyNeckInIt

Sorry to hear about your IVA failing. You would think that 4-Years in, a F&F based on your existing contributions would have been considered. But of course there are so many variables like 'awkward creditors (HMRC & NRAM for example), and of course how good your IP was (or was not) at fighting your corner.

The reality is probably that, despite what you may think, I am sure your IP did at least the minimum they had to, to stay within the rules etc.

In a nutshell, you are now 'back to square one', and so will have to decide what to do now.

Is going bankrupt not an option? Could be, especially if you have no assets to protect and/or you are in unstable employment and/or have little affordability to make another IVA viable.

If you have assets to protect, and are now back in stable employment, you could try another IVA. Whilst this can be done, it might be more difficult for an IP to convince creditors, on the basis that this has been tried once, and failed.

Did you make any effort to choose a decent IP? (Or did you, like me, think one IP is just as good as any other?).

Google 'IVAcomparison' - take you to a nice little review site. Speak to 2-3 well-reviewed companies, and choose one that feels right for you. This is important, because (as I am sure you are aware), you will not be able to change providers once your IVA is up and running.

Worth a chat with your local CAB/ the debt charities to see what they suggest.

Best of luck.

Dock_Boy

Thanks, will check out the Google site you mention though I am reluctant to enter into another IVA.
Going to be talking to CAB etc and see what they say also.

longtermplanner

Dock_Boy wrote: »

I feel very strongly that my IP did not even follow their Standard Conditions when notified by me in Dec. 12

Can you explain why you feel this? There are means for getting redress from IPs, but you will need a good case.

Did your IP recommend that the completion motion should be accepted by creditors?

Were you back in employment at the time the motion was voted on by your creditors? Are you now?

Do you have a house with a lot of equity?

What is your debt total at this point? Has there been an attempt to get PPI refunds?

Sorry for all the questions but it's hard to say anything useful without a more complete picture.

Depth_Charge

Hi


Information here from CAB Adviceguide that might be useful


http://www.adviceguide.org.uk/wales/debt_w/debt_help_with_debt_e/debt_individual_voluntary_arrangements/debt_problems_with_an_individual_voluntary_arrangement/complaining_about_an_insolvency_practitioner.htm


Best Wishes


DC

Dock_Boy

Hi longterplanner;

In the IP's own words, ''he therefore requests that creditors consider the following resolution'' It was also pointed out that acceptance would mean that creditors had received 44p in the pound as opposed to the anticipated return of 62p in the pound. There is no recommendation.
By the time the motion was voted on I was back in full time employment and I still am.
I do not own property nor do I have any other tangible assets.
As far as PPI, who knows. Think Money (part of FJ?) received the completed forms from me but I heard nothing further.
My total debt is effectively the original £44,951 less the £19,862 distributed to creditors. To date, since the IVA was terminated, 5 of the original creditors have contacted me.

Giggles_Fairy

The IP has requested a full and final settlement and explained that the dividend is still quite high - it is up to the creditors to decide whether they want to accept it. In your case the creditors obviously rejected the proposal. In these cases it is typical for the IVA company to ring the creditors to discuss why they have rejected and see if there is a way of getting a successful outcome.

Did you keep in contact with your IVA provider throughout all of this? Did you advise them you were back in employment? If so your income and expenditure should have reflect your new details and if it showed a disposable income this could by why the creditors rejected. What did the IVA provider say were the reasons?

As you have had the certificate of termination there is nothing that can be done now in terms of saving the IVA. Now you need to decide whether debt management, another IVA or bankruptcy is your best option.

Ring the PPI company (I think it is called Think 2 Claim associated with FJ according to google) and ask where they are up to with your claims and what has happened to the ones already paid out. Also clarify what is pending and what will happen with those funds (ie will they come directly to you?). Any future PPI claims could be useful to pay off your debts.

SPELLKASTER

I have failed my IVA due to the IVA provider not taken into account increased health costs and taking my DLA as income.

They also inflated my income claiming I get £962 per month when in fact I only receive £888.

They increased my payments from an affordable £130 per month to an unaffordable £175 per month.

I have reported my IVA provider to the Financial Ombudsman Service.

I feel with my overall level of debt and income I was more suited to a Debt Relief Order, and was wrongly advised for an IVA.

I am waiting for the failure certificate to come through so I can apply for a Debt Relief Order.

My gripe is that I have paid 2 years into the IVA for nothing!!

longtermplanner

Dock_Boy wrote: »

In the IP's own words, ''he therefore requests that creditors consider the following resolution'' It was also pointed out that acceptance would mean that creditors had received 44p in the pound as opposed to the anticipated return of 62p in the pound. There is no recommendation.
By the time the motion was voted on I was back in full time employment and I still am.

That language sounds as though the IP was not saying the creditors should approve it.

As you returned to full time employment, is there a reason why you couldn't have restarted the IVA repayments?

Why do you think your IP did not follow their Standard T&Cs?