IVA Terminated! - What Now?

kevboy

Our son has been running an IVA through Stepchange for several years now but unfortunately recently found himself going through a difficult period, not least having been mugged and then losing his job. This meant he defaulted on several payments. In the meantime we agreed to make an offer to the creditors for a full and final settlement, although we were concerned about the amount and type of information required, including evidence of the money being available.


The upshot is because of elapsed time (28 days) the IVA was terminated, even though we did submit the offer. This is when we realised that the people running the IVA under the Stepchange banner are a for-profit company, not a charity. As such they do not readily take into account people's circumstances and are looking to get the best for themselves and the creditors. This is no better exemplified than by their declaration of over £2500 in charges in their letter of termination, thereby removing it from the record of his credited payments.


My question is, now that he has been thrown under the bus, what next with the creditors? They have essentially been told they are off the leash. Should he wait to hear from them individually and then try and strike a deal to make a settlement?


Any help would be greatly appreciated.