Author Topic: IVA going Bankrupt Advice Please  (Read 3589 times)

ljwilson1

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IVA going Bankrupt Advice Please
« on: Sep 01, 2011, 09:29:20 AM »
I have been in an IVA since Jan 2010 but due to some unexpected bills arising I took out a couple of payday loans which I then had to keep “rolling over”.  I then took out another couple to get through the month then I took out some provident loans and my situation is now worse than ever.  I have taken advice from the National Debtline and they have advised me that bankruptcy is my best option.  I have informed my caseworker at payplan , they administer my IVA, that I have cancelled the Standing Order to them and I am now waiting for my IVA to fail.  In the meantime should I write to the Payday loan companies and make them a token monthly payment offer and explain that they will be included in my bankruptcy?  Also, they all have my debit card details so how do I stop them taking payment?
 
I have started completing the forms for the bankruptcy and they look quite straight forward. On the statement of affairs where I have to list my unsecured debtor details should I use the details from my IVA as these differ in some cases from the details I originally has, for example my Argos Credit Card is actually Barclaycard on my IVA and my Nationwide Credit Card and Overdraft are on my IVA at KPMG.
 
Many thanks for your help and advice, I found this forum this morning and having read through some of the posts I now feel much better about everythingLorna

James Falla

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Re: IVA going Bankrupt Advice Please
« Reply #1 on: Sep 01, 2011, 01:02:41 PM »
Hi there Lorna
 
If you have made the decision to go bankrupt, then you should stop all further payments to your unsecured creditors. This will help you save up the necessary bankruptcy court fee. Having said that, stopping payday loan companies taking funds via your debit card can be quite difficult. The only way you will be able to prevent this happening is to cancel the card and get a new one. My advise would be to contact the relevant bank and tell them that you have lost the card. They will then issue a new one which the payday loan company should not be able to draw against....
 
When completing your bankruptcy application, you should list all of the origional creditors that you owe money too (unless the debt has been sold). KPMG are not a creditor, they simply manage your IVA payaments on behalf of Nationwide. As such the creditor you list should be Nationwide. 
 
Let us know if you need more help :)
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ljwilson1

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Re: IVA going Bankrupt Advice Please
« Reply #2 on: Sep 01, 2011, 01:16:18 PM »
Thanks for that James.
 
I have been told that because the pay day companies have "continual payment authority" that even if I get a new card number they can still take money from the account.  I have to write to them and withdraw my authority but even that does not always work.  I have been advised to close my account (currently a basic one from Co-op) and open a new one with Barclays.
 
I will let you know how things go
 
Lorna

ljwilson1

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Re: IVA going Bankrupt Advice Please
« Reply #3 on: Sep 02, 2011, 02:48:30 PM »
Another question about my Statement of Affairs, a lot of the addresses listed on my IVA are at The Insolvency Exchange, should I use these addresses on my statement?
 
Lorna

James Falla

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Re: IVA going Bankrupt Advice Please
« Reply #4 on: Sep 05, 2011, 03:50:24 PM »
Hi here Lorna
 
To answer your question about The Insolvency Exchange. When you are completing your bankruptcy application, you should list the name address and account number of the origional creditor. The Insolvency Exchange (TIX) is a company which your creditors have been using to manage your IVA on their behalf. TIX would not be involved if you declare yourself bankrupt.
 
How did you get on closing your bank account and opening a new one? That would certainly stop the payday loan company from withdrawing any further funds.
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ljwilson1

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Re: IVA going Bankrupt Advice Please
« Reply #5 on: Sep 05, 2011, 06:15:00 PM »
I have opened a new basic account with Barclays, which they won't freeze when I am made bankrupt, when my last direct debit comes out on the 15th I will close my old account.  I will also write to the payday companies explaining about my intention to go bankrupt and withdraw my approval for them to continue taking payments.  I am just waiting for a certificate from my IVA then I will proceed


Lorna

James Falla

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Re: IVA going Bankrupt Advice Please
« Reply #6 on: Sep 06, 2011, 11:20:11 AM »
Well done Lorna. It sounds as though you have things under control. Please let us know how you get on with the payday loan companies. A lot of people are struggling with payday loan debts at the moment so many people will find your experience useful.
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ljwilson1

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Re: IVA going Bankrupt Advice Please
« Reply #7 on: Sep 06, 2011, 02:14:43 PM »
OMG I very nearly agreed to pay a company £400 to deal with my bankruptcy for me! bankruptcy.co.uk  They were very convincing on the phone and asked me how much I wanted to pay them and that they would do it for £400.  All the other companies that have contacted me have wanted much more.  I googled the mans name (Sean Mason Kiani) and found an alarming article 
They are calling me back this afternoon and I will tell them I have changed my mind, can’t believe how close I came and I am usually quite switched on with this sort of thing
 
Lorna