IVA officially failed - What next?

Debtkitten

I decided some time ago that BR would be a much better option for me than an IVA, (like 99% of people with an IVA it seems!) I stopped making my IVA payments to save for the fees, and yesterday I received a letter from my IP saying that my IVA had officially failed. In the paperwork that was sent it said the IP had no intention of bankrupting me. (Probably because he knows I have no assets to cover the cost of the fee)
What happens next? Most of my debts (about £24k on credit cards and an unsecured loan) have been sold on to debt collection agencies which only the IP dealt with, not myself. Will they start knocking on my door straight away or will they write to me first?
Also how long do you think it will be before they start hassling me because I am unable to start the bankruptcy process for myself until the end of January as I am working away from home? Are debt collectors the same as balliffs? I live with an elderly relative and I'm sure it would scare her to death to have someone try and take anything from her house.

Thanks in advance!

rog2

Hi DK and welcome to Bankruptcy and Living with it.

I'm sorry to hear that your IVA has failed, and that you are now looking at bankruptcy.
I would strongly suggest that you have a good chat with one of the debt counselling charities, such as CAB, CCCS or National Debtline, who will be able to advise you on your next step.
As regards the 'debt collectors' - NO they do NOT have the same powers as Bailiffs - in fact they have about as much power as a paper boy. They will chase, and drive you mad with their constant phone calls, but are unlikely to cause much of a nuisance before the end of January.

Have a look at the following link, to see how DEbt Collectors should, but seldom do, conduct their business:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

It's worth downloading a copy, as you can report them to Trading Standards if they act in contradiction to the OFT Guidelines.

tigerfeet2006

Hi and welcome to the board,

Your first port of call should be to contact one of the Debt Charities; see links below. Their services are free; they have no vested interest to serve; their advisors are professionally trained and the advice they give will be objective and in your best interests only. CCCS operate a system of telephone appointments that are designed to be flexible and don’t require you to attend an office based interview. At the CAB you will need to make an appointment with a specialist Financial Advisor; other advisors may not have the specialist knowledge you’ll need.

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/index.htm

If you’re advised that bankruptcy is the most suitable solution to your financial problems then we can offer the best support and anecdotal advice that you’ll find anywhere on the Web.

For more specific advice and support, in an environment that is managed by people with first hand experience of bankruptcy, and moderated to ensure that no deliberately inflammatory or abusive posts are made then please visit:

http://bankruptcysupportersclub.co.uk/default.aspx

Just remember, as desperate as you may feel at the moment, we have all experienced what you are going through at the moment and with the right support and advice things will improve. It’s not an easy route to take but it is a route that will put you back in control of your life rather than just reacting to events.

Bailiffs WILL NOT come round until 3 things have happened. 1) you must have been taken to the county court 2) you must have had a judgement entered against you and 3) you must have failed to pay the judgement.

fiveyearplan

I just spent considerable time replying to this post and my computer went offline! Anyway I would just add that if you have just recently stopped paying creditors you have plenty of time before things get 'nasty'. You will probably just have phone calls and threatening letters. I'd ignore them if you are going BR at the end of the month. I haven't paid any of my creditors since August and some of them since May. Also if (when!) they do phone they won't be able to discuss anything with your elderly relative.