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IVA Problems, What Next?
thomp1983
Posts: 21 Forumite
hi, this is a post on behalf of my sister who unfortunately has debt problems and doesn't know if she's coming or going at the minute so hoping you guys can help point us in the right direction.
right, her debts total circa £22k she entered an iva with debt free direct about 18months ago. about a year ago she move to portugal and was there for about 4 months. before going she informed her iva and they said ok not a problem and continued to take payments via direct debit. when she came back she told them she was unemployed they said ok, stopped her payments and told her to get in touch when she was working again. i think she missed one payment before finding work, she rang them to tell them her new circumstances, they said do so in writing so she did. she received no response to this so wrote again. again they didn't respond so she rang them a few times and was told they'd only deal with her in writing, she wrote again to receive no response. while this was going on they were taking no payments, but sensibly she has been saving each months payment in a savings account.
now she has received letters from a debt collection agency saying she owes the full amount immediately, and must get in touch by the 22nd of january 2008 or they'll take her to court. she's missed this deadline as the letters were sent to the wrong address, and she only received them yesterday (28th)
so basically it seems they've cancelled her iva even though she's tried to adhere to it which i see as unfair, although irrelevant as it's what happens now that matters.
what now are her options? can she apply another iva given that she didn't chose to leave her first one? what will happen if she goes to court? is bankruptcy now a realistic option for her and her long term future?
i have tried to get her in to see the citizens advice but they are only open short hours in our area and she has work commitments aswell.
any help would really be gratefully received
chris
right, her debts total circa £22k she entered an iva with debt free direct about 18months ago. about a year ago she move to portugal and was there for about 4 months. before going she informed her iva and they said ok not a problem and continued to take payments via direct debit. when she came back she told them she was unemployed they said ok, stopped her payments and told her to get in touch when she was working again. i think she missed one payment before finding work, she rang them to tell them her new circumstances, they said do so in writing so she did. she received no response to this so wrote again. again they didn't respond so she rang them a few times and was told they'd only deal with her in writing, she wrote again to receive no response. while this was going on they were taking no payments, but sensibly she has been saving each months payment in a savings account.
now she has received letters from a debt collection agency saying she owes the full amount immediately, and must get in touch by the 22nd of january 2008 or they'll take her to court. she's missed this deadline as the letters were sent to the wrong address, and she only received them yesterday (28th)
so basically it seems they've cancelled her iva even though she's tried to adhere to it which i see as unfair, although irrelevant as it's what happens now that matters.
what now are her options? can she apply another iva given that she didn't chose to leave her first one? what will happen if she goes to court? is bankruptcy now a realistic option for her and her long term future?
i have tried to get her in to see the citizens advice but they are only open short hours in our area and she has work commitments aswell.
any help would really be gratefully received
chris
0
Comments
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My advice to you is to phone the CCCS today, a debt charity, they will advise you.
http://www.cccs.co.uk/
The advice will cost you nothing
Merlot.x."Wisdom doesn't automatically come with old age. Nothing does, except wrinkles. It's true, some wines improve with age. But only if the grapes were good in the first place." — Abigail Van Buren0
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