Author Topic: Failed IVA and Max Recovery  (Read 21942 times)

Harper75

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Failed IVA and Max Recovery
« on: Dec 08, 2010, 04:37:04 AM »
Hello all.  I'll try to keep my story/problem as brief as possible.  Basically I entered in to an IVA 3 years ago with Payplan after accumulating 100k of debt (much of it through gamblimg I am ashamed to say).  I Was paying £610 per month but after a change of circumstances this failed after 6 months.  Since the IVA failed I have not heard a thing from any of my creditors ( I assumed this might have been as I moved address although Payplan knew of this) then yesterday morning I received two seperate letters from a company called Max Recovery.  They were not threatening (they say something about they are obliged to send me statements as per dome 1974 act) but were statements regarding two of my debts (Barclays and LV).  I assume they have bought these two debts and expect more similar letters in the post as I had 7/8 creditors when entering my IVA 3 years ago.  As two and a half years have passed since failing my IVA I almost put it to the back of my head though I knew I had to do something about it.  These letters have shook me up and scared me and now I want to do something as I can't continue like this.  I want to get on with my life. I know many will ask why I didn't just go bankrupt but I just didn't want to.  I wanted to pay something back and still do!  I would quite happily pay something back to my creditors every month for the next 10 years though I am earning more then 50% less then I did when I took on the original IVA.  Obviously I am never going to be able to pay the full amount back but ideally would like to try another IVA if I could.  Anyway that is my story.  Any help/advice would be great.  I am so scared.  Thanks for listening.

James Falla

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Re: Failed IVA and Max Recovery
« Reply #1 on: Dec 08, 2010, 10:15:51 AM »
Hello Harper75
 
I am surprised that you have not heard anything from any of your creditors for so long. I would have expected them to be chasing you for the outstanding debt before this.
 
May I ask whether you are a home owner? I assume not otherwise I would have expected that Payplan would have petitioned for your bankruptcy when your IVA failed. Given that you are not, then as you say bankruptcy would really be the best way to put your debt behind you.
 
If you went down the bankruptcy route, you needn't feel too bad as you would still be expected to pay towards your debt if you can. The rules on bankruptcy income payments changed on the 1st December and now if your disposable income is any more than £20 you will be expected to pay this towards your creditors for three years. The payments would increase if your financial circumstances improve.
 
If you are really not ready for bankruptcy, you could start a debt management plan. This might make you feel better but you will possibly never repay your debt. Even if you could afford to pay £250 a month it will take you 30 years to pay off your debts if you go down this route.
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #2 on: Dec 08, 2010, 10:35:03 AM »
Hello James and thanks for your reply.  I too am surprised I have never heard anything until now.  Like I say I have changed address but that was whilst I was paying in to my IVA so Payplan knew about my new abode and so hence I assume my creditors would be.  Obviously I was never going to tell them my new address.  I live with my parents but I need to move out soon and rent.  But to answer your questiob no I do not own my home.  To be host I have nothing asset wise.  I know bankruptcy would be the best road to go down but I really don't want to.  I would prefer to do another IVA as surely even my creditors would prefer this as they would get more back from me.  If I went bankrupt they would barely nothing.  Failing the IVA the DMP could be an option but I would only want to pay about £100 per month.  Like I say the IVA would be my preferred option.

James Falla

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Re: Failed IVA and Max Recovery
« Reply #3 on: Dec 08, 2010, 11:12:47 AM »
There is no reason you can not start another IVA Harper75. The only issue you will have is the monthly payment. Based on you owing £100,000 really the bare minimum you would need to be able to pay would be £500 a month. Unless you could do this, your creditors will not accept your proposal. I know this is illogical because it would be far better than the return if you went bankrupt but unfortunately they are generally unbending in sticking to their criteria....
 
If this precludes you from the IVA then you could start a DMP. As I said, if you pay £100 a month unfortunately you will not make much inroad into paying your debt. However you could always do this for a while and then decide to change to an IVA later if your circumstances improve or decalare bankruptcy if things do not get better.
 
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #4 on: Dec 08, 2010, 08:23:02 PM »
Thanks James.  Bit gutted about the IVA but as you sensed £500 a month is just out of the question at the moment.  I think £300 maximum is what I could afford.  So perhaps the DPM is what I need to pursue. 

James Falla

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Re: Failed IVA and Max Recovery
« Reply #5 on: Dec 09, 2010, 09:03:26 AM »
Hi Harper75
 
Unfortunately that looks like the case. However, before making any final decisions on the way forward, you should speak to an experienced debt advisor who can look at all of your circumstances and advise you properly. 
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #6 on: Feb 16, 2011, 05:50:15 AM »
Hello again.  I wrote back in December regarding my problem above.  Anyway yesterday I finally got the dreaded letter from a company called Fairfax Solicitors acting on behalf of Max Recovery (it appears they did buy up most my debt).  The letter states that If I don't pay up my outstanding debt by this Friday they will take further action.  Just don't know what to do.  I have googled this solicitors company and it appears they are not actually solicitors but debt recovery people but bullies all the same.  How do I deal with these people?  I don't want to phone them.  Whilst I acknowledge the debt obviously no way can I pay it.  Should I make a small payment?  I could afford about £100 a month at the minute.  Please help!

shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #7 on: Feb 16, 2011, 06:38:21 AM »
HI Harper 75,

If you have at least £300.00 disposable income and still want an IVA contact National Debtline 0808 808 4000. They work with 4 IVA providers who adhere to an IVA protocol (a code of practice).  You will not be charged upfront fee's for applying for an IVA and you will not be charged a fee if the IVA fails at the first hurdle - so no costs. Your IVA can start from as little as 20p/30p in the pound owed.

My only concern is that if Max Recoveries have bought the majority of your debt then they will become your majority creditor and this means they are likely to vote against an IVA. Tell them you are considering bankruptcy this may help them to decide to vote in favor.

Alternatively you could opt for a free DMP - don't contact a fee charging company.

Kindest Regards

 
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #8 on: Feb 16, 2011, 02:15:17 PM »
Thank you for reply.  As I have said before an IVA would be my desired option but at the moment perhaps £200 tops would be what I could afford.  A DMP would be my second option.  I was thinking of writing to them actually and playing the bankruptcy card because as I have said before I have absolutely no assets at all so I am assuming they would stand to gain very little from me.  Should I do this?  Thanks.

Harper75

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Re: Failed IVA and Max Recovery
« Reply #9 on: Feb 16, 2011, 02:19:43 PM »
Though I would be able to stretch to £300 in 2/3 months as far as an IVA is concerned.

shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #10 on: Feb 16, 2011, 03:11:25 PM »
You could start of with a DMP as its an informal arrangement and then change to an IVA in three months. Trust me phone NDL! They will help you to decide, they are a charity and you will not be charged for their service in any way shape or form. They will take into account your change in circumstances and go through all of your options very impartially. You can have an IVA offering either £200.00 or £300.00 deoending in the creditors vote or a DMP!
 
Only you can decide though very good luck!
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #11 on: Feb 16, 2011, 03:23:25 PM »
Thanks for your reply.  Yes I think a DMP would be a good idea initially with a view to hopefully moving to a IVA further down the line.  Should I still write to Fairfax though and tell them I am thinking of going bankrupt?  Like I say it's absolutely in Fairfaxs' interest that I do not go bankrupt isn't it?

shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #12 on: Feb 16, 2011, 06:24:49 PM »
You could: why not and tell them you have no assets - they may be more open to enter into another arrangement with you at this point!

Only downside they may also decide to sue you but if they did you would receive the claim form in the post, reply within 16 days from the date of service and submit a pro rata offer to the DCA - if accepted meet the payments each month and no further enforcement can be taken against you. (NEVER default on a CCJ), this will mean that a CCJ is registered on your credit reference file for 6 years too.

Only you cabn decide what to do Harper!

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Harper75

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Re: Failed IVA and Max Recovery
« Reply #13 on: Feb 16, 2011, 06:36:56 PM »
Oooh you have scared me a bit.  Why would they sue me?

shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #14 on: Feb 16, 2011, 07:33:27 PM »
Unfortunately a debt collections agency or creditor can sue at any point. Harper it may be best that you talk this through, contact National Debtline they will talk you through everything!

I hope everything works out for you best of luck!
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