IVA fail (??)

Derwick

I have had an IVA for over 4 years now with DFD. (UnfortunatelyI hadn't known about Stepchange at the time I took it out.) Initially my payments were £140 this included a whopping £40 admin fee.
It went up to £194 as I had a change of job, I did try to get it lower but that's what they came up with.
I changed the standing order and continued to pay. They sent me a statement ofincome & expend. and asked me to sign, agree and return, which I did. Now they tell me that they didn't receive it and have cancelled my IVA. They said the creditors will be in contact and that I need to make alternative payment arrangments. What a bunch of messers.
One other thing, I have always found it extremely difficult to get in contact with them.
Has anyone on here had dealings with DFD?
What advice can someone give me regarding the 'failed' IVA.
Many thanks for any advice.....:o

sourcrates

Hi,

All insolvency practitioners charge for IVA's, you can't get one for free.

Did they not try to contact you at all ?

It's unusual to just cancel the arrangement.

Eventually your IP will distribute the money from the fund to your creditors, after taking there cut for the fees.

You will then have to deal with the creditors again and find another solution dependant on how much is still left to pay.

National_Debtline

Hi Derwick

This may seem like a silly question but can I check that this is definitely an IVA and not a debt management plan (DMP). As Sourcrates says, all IVA companies charge a fee but Stepchange could have arranged a free DMP. With an IVA your outstanding debt gets written off at the end of the term, which is usually 5 years.

It would be extremely unusual for an IVA company to fail an IVA just because they did not receive your income and expenditure form. I would have expected them to both call and write to you for the information. Also if you had not defaulted on the payments I would not have expected it to have been failed in the way you describe.

If the IVA has failed they must send you a certificate of failure. Have you had that yet? If this is an IVA it is a possibility that your creditors or IP could now apply for bankruptcy, this is more likely if you own your own property. If you could give a little more information about what has happened, your debts and assets, that will help us offer you further advice.

Susie
@natdebtline