Iva completed and I find out a debt wasn't included!

Mummy22

Hi
I'm after a bit of advice from anyone that may have found themselves in the same situation.
Very excited to complete my Iva and receive my certificate. I go online for the first time to check my credit scoring. As expected the creditors still show as default so have contacted the credit ref agency to chase the lenders to amend.
I'm looking though my iva report and don't see a payment to shop direct. I contact my iva company to ask which debt was shop direct (some on the report show as the debt collections agency's such as arrow/ capquest so not obvious). They come back to me and say shop direct was never included. I did add this to the iva a couple of months into it which was bad of me but I did the right thing and included it. I had spoken to them and was given an email address to send the statements to so that's what I did. The iva company are now telling me I sent to wrong email so was never included. If I spoke to them and made them aware shouldn't they have advised me they hadn't received paperwork rather than ignore that the conversation was had.

I have never received a letter from shop direct/collection agency chasing the money so never thought anything of it.
Now I'm debt free from and iva and within 5 days am in the position of being in debt!

What should I do? I don't have £2k to settle he debt. This should have been paid for with my contributions over the 5 years.

Should the iva take some responsibility here or am I on my own to sort this?

fatbelly

I'm not sure about the process of adding a debt to an IVA once it's set up. I didn't realise it was possible. They would know more about this on the IVA board.

But from the perspective of this board, you haven't acknowledged the debt for 5 years, they are not chasing it and so it is going to be statute barred and unenforceable in 12 months if you leave it alone.

poppasmurf_bewdley

fatbelly wrote: »

I'm not sure about the process of adding a debt to an IVA once it's set up. I didn't realise it was possible. They would know more about this on the IVA board.

But from the perspective of this board, you haven't acknowledged the debt for 5 years, they are not chasing it and so it is going to be statute barred and unenforceable in 12 months if you leave it alone.

Fatbelly is correct (as usual).

When was the last time you made a payment to Shop Direct, or acknowledged the debt to them in writing?

If it was more than six years ago, the debt is now statute barred. If it was less, then measure out when it will become so.

fermi

May also be of some use if not SB and they start chasing.

http://debtcamel.co.uk/add-debt-to-iva/

National_Debtline

Hi

The page Fermi linked to has some very useful information. It's says that if you realise a debt wasn't included in an IVA that should have been you only have to pay the amount they would have received under the IVA. This is covered by section 260 of the Insolvency Act 1986.

It also says that if a debt is under 15% of the total debt owed and is left out of the IVA it could have been added quite simply. Over 15% would have required a variation with a creditor vote.

You can complain about your IP to the Insolvency Service if you don't feel they handled your situation correctly.
www.gov.uk/complain-about-insolvency-practitioner

James
@natdebtline

sourcrates

Just a note about your defaults on your credit file, they will show for another year yet, 6 years in total, it looks like you've been lucky in one sense, and managed to complete your IVA in 5 years, instead of 6, which is becoming more the norm.