Next Steps After Failure of IVA

Silverlady55

My IVA has failed and I have the failure letter. I requested its failure because was wrongly advised to do it in the first place and I lost my job and had various personal issues etc going on. My IVA supervisor was no help to me at all so I have wasted three years as I see it. I'm now working full time again and have been offered a lump some to borrow from a family member to make full and final offers. I owe £21,000 to 10 creditors, 3 of which are pay day loans and I can borrow up to £14,000 from a family member. Please can anyone offer any advice of what I should do now as a way forward and do these figures sound like I might be able to negotiate full and finals? I am panicking that the creditors will start harassing me as obviously they will want their money as the IVA has failed, which is understandable. I have no assets and live in rented accommodation. I have thought of bankruptcy but although my new job isn't high paying or a career as such, it's in my contract that if I declare bankruptcy they will terminate my employment. The figure of £21,000 is based on what I owed at start of IVA minus any IVA contributions, I have no idea what charges and interest they will stick on any of my debts, so I guess it could be more. As the IVA failed do you think it's likely they would all be open to full and final offers? What is worrying me the most is that if I borrow some of the money and make full and final offers, but then a few creditors refuse to accept it, they then bankrupt me so my family member will lose the money they've lent me as they will then be classed as a creditor. Also, another query I have is some of my debts are for small amounts like £100 to £300 which I could probably pay back in full now. Do I still have to offer reduced settlement figures to them as well as the bigger debts so that I treat all creditors equally? The pay day loans worry me as I have no idea how much interest and charges they will now add on, so do I just write and offer them a percentage of the original amount borrowed? Should my next course of action be writing to them all to say my IVA has failed and will they accept X amount full and finals? I feel I want to write to them all now so they hear from me first and know that I am willing to try and sort things out, rather than them chasing me. I have read on here about writing first of all to request copies of the original credit agreements, but I am not disputing any of these debts or trying to get out of paying them as they lent me the money in the first place in good faith, so I don't want to get into playing games and trying to avoid paying them, so is there any point in requesting the original agreement seeing as I had an IVA with them all included in? I did ring a debt charity for advice and they just said go bankrupt, but that seems so drastic. Thank you for any advice anyone can offer me.

[Deleted User]

Hi

Yeah I'm with you I'd try full and final's

Any charges get on the phone, they can easily be wiped nowadays with much less fuss, remember the moto if at first you don't succeed, try and try again!

Will be interesting to see how you get on

Kindest wishes
Keep calm xx

sourcrates

Hi,

OK, first off, requesting copies of your credit agreements, is not a way of "avoiding debts", its part of your rights under the consumer credit act, if any lenders have failed to keep the relevant paperwork, that is there problem, and not yours, you are expected to keep to the terms of the agreement, and so are they.

You should CCA all relevant accounts as a matter of course.

As regards the payday loans, as new guidelines have now been introduced, basically saying you cant be charged more than twice what you have borrowed, although this cant be applied retrospectively, you could challenge any creditors who flouts this, as been unfair.

You should perhaps pay off the smaller loans if you can, its a shame your family member didn't make the loan available earlier, as you could of ended your IVA with a lump sum offer to settle early, unfortunately that time has now passed, and you need to formulate a plan of action to deal with this.

So its VERY important to do CCA requests first, stuff the niceties, your the one in the hole, you need to do anything you can to get out of it, after you have found out which accounts are enforceable, then make settlement offers to them.

Its very unlikely your creditors will make you Bankrupt, as they will get nothing basically, as you don't have sufficient assets to realize any capital, so you can be fairly safe on that score, they could however take court action, but again, a court would not make you pay more than you could afford, so again, a bit of an empty threat in reality, so don't panic, although lots of things are going through your mind, what your creditors can actually do is fairly limited in reality.

Silverlady55

Many thanks for your answers. Where can I find a template for the CCA letter please? I did a search but I can't find anything recent. Many thanks.

sourcrates

Silverlady55 wrote: »

Many thanks for your answers. Where can I find a template for the CCA letter please? I did a search but I can't find anything recent. Many thanks.

Quote:
(Your home address)
Date:
To:

Dear Sir/Madam

Account/Ref No:

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully



Your name.
Print you name rather than use your normal signature, since some DCA's have been known to scan it so they can mock up a fake CCA.

For the same reason, the statutory fee of £1 should be a postal order.

Silverlady55

Thank you so much for the quick reply. Sorry one more question, a lot of my debts are now not with the original banks or credit card companies but with recovery agents so would I send the CCA letter to the recovery agent or the original lender? Also do I send a letter to the pay day loan companies? Thanks.

sourcrates

Silverlady55 wrote: »

Thank you so much for the quick reply. Sorry one more question, a lot of my debts are now not with the original banks or credit card companies but with recovery agents so would I send the CCA letter to the recovery agent or the original lender? Also do I send a letter to the pay day loan companies? Thanks.

Send to the collection agency, it is there responsibility to pass it to the original creditor, despite what they may tell you.

Whilst they take action on your request, the account will become (temporarily) unenforceable, until they respond with the correct paperwork, so gives you some breathing space.

As you took the PDL`s out on the internet, i doubt weather a CCA will be relevant, as you would of electronically signed an agreement.

Silverlady55

Sorry yet another query. I am just doing my CCA letters and I have noticed that some of my different debts give The Insolvency Exchange in Harlow as the address. But different credit card companies are using this same address. So is this the address I would send my CCA letters to as I don't have any other paperwork or addressed for these debts? Thanks.

sourcrates

Silverlady55 wrote: »

Sorry yet another query. I am just doing my CCA letters and I have noticed that some of my different debts give The Insolvency Exchange in Harlow as the address. But different credit card companies are using this same address. So is this the address I would send my CCA letters to as I don't have any other paperwork or addressed for these debts? Thanks.

No, don't send them there, you need the address of the DCA holding your account, if you cant find the address, you may have to wait until they write to you.

Your creditors should be listed in your IVA papers, prior to been dealt with by the insolvency exchange.

Or you could ring your old IP`s office for the addresses.

fatbelly

I note that, although you say that your employer could terminate your contract on bankruptcy, that did not stop you from entering into an IVA, which is another form of insolvency.

A third form of insolvency is a DRO, and the limit goes to 20k in October. You are allowed to make pro-rata payments to your creditors to get to that threshold, and third parties can do what they want if they are prepared to help.

The other criteria are:

not a property owner
surplus income under £50 per month
car (if car owner) worth under £1000

Your family friend could help you with the £90 fee

Sazzie23

Hi Silverlady

Just wanted to say good luck with, sounds like you are trying to doi the right thing but circs are not going your way. If the IVA folk had advised you properly and helped, you might not be in this position, so it's a good time to remind anyone thinking of an IVA that it's not always plain sailing.

Your firm is very harsh about bankruptcy, but I have the same problem, so sympathies.

I wish you all the best.