DFD Dragging their feet on IVA

simpywimpy

Two fold question really. Firstly, my partner has told DFD that he wants to default on the IVA in order to go bancrupt. He has since handed back the house, it has sold fairly quickly and he has an outstanding balance of 8k on the mortgage.

Although DFD accepted that he wishes to come out of the IVA they have failed to contact him in the last 4 months or so. The companies he owes within it have also not been in touch which would appear to mean the IVA has not been cancelled. He has tried to contact DFD to no avail as they never ring him back.

Whats the best way forward?

Second part is can he set up a DMP to cover the outstanding 8k from the mortgage if the IVA is still being sorted or should be just wait until all can be sorted at once.

DorisTrousers

DFD almost certainly will not have closed the IVA as yet. They will probably want to realise any assets that may be due via way of PPI claims. This may not be a short process I'm afraid.

The good news is that the creditors bound by the IVA, and indeed the shortfall from the house I believe, are still bound by the IVA, and so therefore there is no need to pay them at all, and they have no method of recovery as it stands. You cannot enter into two insolvencies at once, so he cannot just go bankrupt at will, he will have to wait until the IVA is closed, but that should allow enough time to save up the fees for BR.

One word of caution would be to not sign any documents that the mortgage company may send, under any circumstances, as they may try and exclude that debt from the BR.