IVA & Creditors

2bDebtFree

Hi All,

I currently have an IVA via Stepchange to pay just under £20,000 of debt. I am 17 months into this agreement and have never missed a payment. I have paid approximately £4500 of this debt back to 10 different creditors. All has gone smoothly so far, all creditors have accepted the IVA from Stepchange and I've never had any issues.

Until now.

One of the creditors, Barclaycard, have closed my account with no warning and is now demanding the whole balance - £2433 is repaid immediately. Can they do this unannounced?

Vikipollard

You said that all creditors accepted the IVA? If that's the case, why would them closing the account without warning be an issue?

Presumably this is not an account which you have been using for the last 17 months any way? Please tell me you didn't subsequently open a Barclaycard account whilst in the IVA.....

If it's a debt that is included in the IVA already, I would forward the correspondence to Stepchange so that they can do the necessary.

National_Debtline

Hi there,


This does seem unusual. When you start an IVA you must list all of your debts, if this debt was listed then they are legally bound by the terms of the IVA when it begins (even if they voted no). I agree with Vikipollard, that if they are tied into the IVA you should contact StepChange if they are requesting money different to the agreed payments.


However, I would've expected this debt to default long before now. If this debt was excluded from the IVA or taken out after it began, this can cause a problem as you are likely to have breached the terms and conditions of your IVA and this can cause it to fail. When an IVA fails there is a risk of bankruptcy which can cause a risk to assets. I would suggest you try and get more advice from one of the free debt charities.


Laura
@natdebtline