Author Topic: Failed IVA and Max Recovery  (Read 22351 times)

Harper75

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Re: Failed IVA and Max Recovery
« Reply #15 on: Feb 16, 2011, 07:47:30 PM »
Thanks for advising.  I shall try and speak to them.

James Falla

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Re: Failed IVA and Max Recovery
« Reply #16 on: Feb 22, 2011, 04:20:49 PM »
Hi there Harper75. How are you getting on?
 
Try not to panic. When Shocksoc mentions the word "sue" this does come across as a bit harsh. They are in fact referring to the fairly standard process of a creditor applying for a county court judgement (CCJ) against you. Given that you are not a home owner, even if a CCJ is issued, you will really be in no worse a position than you are now.
 
My suggestion is that you do make token payments to your creditors based on the £200 you have available now. In a couple of months time if you have £300 a month, you could then propose an IVA. Many creditors have recently changed their thinking on the amount they are prepared to accept in an IVA. As such, £300 a month which would equal c18 pence in the pound an may well be acceptable to them. This would certainly be better than what they would receive if you declared yourself bankrupt.
 
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #17 on: Feb 22, 2011, 05:01:23 PM »
Hello James and thanks for replying. 

I am trying not to worry but obviousky it is hard.  I was thinking it meant a CCJ and yes I am not worried as such about that.  I have emailed Fairfax and told then I am currently seeking advice about the debt.  Someone did tell me that in some ways the ball is in my court because of my lack of assets and low income and so my creditors definitely would not want me to go bankrupt as they will get next to nothing from me.  Yes some sort of DMP or agreement with Fairfax would be my preferred option with trying for an IVA say 6 months down the line.  But I am concerned they would not accept it though I do keep thinking to myself they would have an ultimatum.  Accept my IVA or I go bankrupt.  Is that too aggresive or unrealistic?

Another worry is them coming to my house.  My parents do not know my level of debt and I really don't want them coming round.  If I lived by myself (and I have to find my own place soon anyway) I wouldn't give a dam about this threat.

Thanks for listening.

James Falla

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Re: Failed IVA and Max Recovery
« Reply #18 on: Feb 22, 2011, 06:11:55 PM »
No problem at all Harper75. Glad we can be of help.
 
The most important thing for you at this stage is to get the ball rolling and start a DMP. You have noting to loose and everything to gain doing this. The sooner you start making payments to your creditors, the more in control you will be and the better you will feel. At least then you will be able to show your creditors you are making an effort to pay and this will greatly reduce the possibility of anyone knocking on your parents door asking you for money.
 
Then when the time is right for you, you can propose an IVA. Do not worry about it being accepted or not. From what you have said, there is every possibility that it will be OK. However, if it is not accepted, you will be in no worse a position. At that time you can simply continue with your DMP or declare bankrutpcy if that is the way you decide to go.
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Harper75

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Re: Failed IVA and Max Recovery
« Reply #19 on: Feb 25, 2011, 07:11:07 PM »
A further confusing development.  I sent Fairfax an email last Monday basically stating (in a polite matter) that I will never be able to repay this debt in full and own no assets and am currently on a low income.  I went on to say that I am currently seeking advice and talking to the National Debt Line.  Yesterday I got a letter from Fairfax (not sure if it was in response to my email) saying they understand I have instructed Payplan Solutions Ltd to act on my behalf and it is MY responsibility to inform then that Fairfax have been instructed to collect the debt.  It goes on to say that I need to contact Payplan immediately to ensure that Fairfax receive my current financial statement and to ensure all future repayments are directed to Fairfax.  I should continue to pay instalments to Fairfax while the Debt Management Agency assess my situation.  I am confused however because though my failed IVA was with Payplan I have not been in touch with them with regards a DPM or anything like that! I doubt they would even consider me now anyway!  I am going to go down the DPM road however after advice from National Debt Line.  Just have to decide who with.  Thanks for listening.

shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #20 on: Feb 27, 2011, 11:00:15 AM »
Hi Harper wondering what you decided to do in the end?
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James Falla

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Re: Failed IVA and Max Recovery
« Reply #21 on: Feb 28, 2011, 04:00:16 PM »
It is your choice who you work with to do your DMP Harper75
 
There is no harm in you speaking to Payplan. However, if you want to work with someone else that is entirely your choice. Not sure what Fairfax solutions are thinking if you have not instructed Payplan. At the end of the day, whoever you choose to help you with your DMP, you should direct the offer to Fairfax as they are acting on behalf of the origional creditor.
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shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #22 on: Mar 04, 2011, 06:21:26 AM »
Hi Harper,

I'm glad you contacted National Debtline you will be in good hands, they are a charity and do not charge for their service when you speak to them again if you choose to go down the DMP route request that you are signposted to Consumer Credit Counseling Services and explain you have been with Payplan in the past. They refer to two charitable organisations so CCCS may be your best route.

You may also decide to go down an IVA route with them if you do they work with IVA protocol compliant companies and will make sure you are aware of the pro's and cons before entering into an IVA.

In the meantime ask them about Cashflow this is a form of self negotiation and the majority of creditors have signed up to agree to comply with Cashflow which means at the point you are cashflowed int/charges will stop on your debts. This might give you a chance to decide what to do for the best and give you some breathing space.

 

Good Luck

Shocksoc335
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James Falla

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Re: Failed IVA and Max Recovery
« Reply #23 on: Mar 04, 2011, 05:23:45 PM »
Hi Shocksoc
 
Have you got much info on the success rate of people who use the "Cashflow" system maving ther interest and charges stopped. I have been speaking to a few and they have found that is has not been the case. Ultimately I advise people that they should stick to their guns and continue to make their payments. As with any debt management plan, the creditors are not obliged to stop their interest charges but many will do once they see that the payments are being made regularly. 
 
Also a point of interest is that most of not all IP now use Protocol compliant IVAs so the choice of IPs is wide. As you say, its important to understand the pros and cons of all debt management solutions before deciding which is the best for a specific situation.
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shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #24 on: Mar 04, 2011, 06:13:52 PM »
 
Hi James,
 
Cashflow is moving onto the next stage and many creditors are in compliance. Its had its difficulties starting up and the hardest part has been convincing creditors to comply. At the end of the day its about educating creditors who have for a very long time done exactly what they wanted to at the expense of real people with real problems.
 
Their are lots of companies who profess to be IVA protocol but who are not and are currently being investigated by the OFT a little bit like these Fee charging DMP compnaies who are being scrutinised and closed down.
 
Theres nothing wrong with reiterating the importance of making sure that people who are already anxious and stressed are taken advantage off
 
Shocksoc335
 
 
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James Falla

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Re: Failed IVA and Max Recovery
« Reply #25 on: Mar 04, 2011, 06:46:08 PM »
Hi Shocksoc
 
Lets hope the creditors do pull the line in terms of the Cashflow system. It would be a good step forward if they did. I guess only time will tell... :)
 
As you say, the most important thing when dealing with people who are suffering with debt problems is to ensure that they receive the right advice. This is unfortunately not always the case. However, with forums like this, at least we can go some way along the line of helping where we can and giving the best advice possible.
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shocksoc335

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Re: Failed IVA and Max Recovery
« Reply #26 on: Mar 04, 2011, 07:03:48 PM »
Totally agree!
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L-E-E

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Re: Failed IVA and Max Recovery
« Reply #27 on: Mar 09, 2011, 09:32:06 AM »
Hi Harper,
 
I would always recommend to anybody in a similar situation to you to speak to at least 2 companies be that a charity backed organisation like the CAB or a commercial company. Both should provide the same advice, they are just funded in different ways. It is then your choice who you choose to work with until your debts are settled.
 
Lee

Harper75

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Re: Failed IVA and Max Recovery
« Reply #28 on: Mar 09, 2011, 11:00:34 AM »
Thanks for the advice Lee.  I have spoken to Both the CAB and National Debt Line though it is the latter I am really pursuing the matter with.  We have gone through my budget planner and just waiting to receive the details through the post.  Once I have signed the relevant papers etc and finalised the plan then I assume this can be sent to my creditors.  At least I have got the ball rolling now.  I will make token payments when I get paid next week as advised.  We worked out I have about £220 I can afford to pay to creditors at the moment but my plan is when I am in a better job I will then push for the IVA (I don't want to be in a DMP for the rest of my life).  If Fairfax refuse this (they are my major creditor) I will then consider bankruptcy as the last resort. 

James Falla

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Re: Failed IVA and Max Recovery
« Reply #29 on: Mar 09, 2011, 04:34:01 PM »
Glad to hear that you are getting yourself sorted with your DMP Harper75. This is the best way forward until your income improves. As you say, you should then be able to consider an IVA. Let us know how you get on with your DMP.
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