Failed IVA what next?

Mrs_pbradley936

Someone close has failed an IVA and is now making lower payments to the creditors (so they say). They had the IVA for 3 years, what happens to the money they paid in? Which amounts to £200 x 36 months = £7,200.

cheesedoffwithdebt

As far as I know the new payments will go on for as long as the creditors accept them and payments made thus far will have reduced the debts but outside an iva creditors are free to charge interest again so your friend really needs to get advice

Mrs_pbradley936

Thanks for your reply. The someone close is my son and as much as I want to help him every time I do (and have done over the past) he gets into trouble gain. He simply spends more than he earns and I am weary of it all.

Foxy-Stoat_3

Mrs_pbradley936 wrote: »

Thanks for your reply. The someone close is my son and as much as I want to help him every time I do (and have done over the past) he gets into trouble gain. He simply spends more than he earns and I am weary of it all.

The only plus side of this is that if you want to "help" him again, it will be highly unlikely that he will be able to obtain further credit again for a good few years.