IVA and debt relief order

amyjaj

I completely forgot to ask the advisor when on the phone to the national debt line. When I entered into my IVA in June 2014, my debt was £20,380. I was paying £230 a month from July 2014 up to October 2015. I am having to let the IVA fail now as I have lost my job. I am now on the ESA, support group. When I come out of the IVA. Will that have brought the debt down? Silly question to ask I know, but The maximum you can enter a debt relief order in England is £20,000

fatbelly

Yes the creditors will have received some payment, You should be below 20k. You won't be able to do a DRO until the IVA is terminated and no longer appears on the register.

DorisTrousers

A lot would depend on how much the nominees fees were, along with associated costs that may have been covered as preferential before creditor distribution.

Perversely, if your IVA was with a certain organisation much favoured on here, you may find that very little has gone to creditors at this point as the nominees fees are much higher for some reason. best to ask your supervisor for a breakdown of creditor dividends. Also, consider making the gap between failure of IVA and application for DRO as small as possible, creditors may start to charge interest again. A little unlikely, but possible. Factor in also the effect of any debts that you may face that were not covered by the IVA, e.g. rent arrears, utilities, overpayments of benefits etc. These would all have to go into a DRO and need to be considered when looking at eligibility.

amyjaj

How long after my IVA fails can I apply for a DRO? Also how long after it fails can my creditor start charging me interest again?

fatbelly

amyjaj wrote: »

How long after my IVA fails can I apply for a DRO? Also how long after it fails can my creditor start charging me interest again?

I think the answer is 'straight away' for both questions.

However, most of the failed IVA debts I see have been bought by a new company and the amount owing is frozen