Our IVA was terminated as we could no longer afford to pay due to our circumstances. Our financial situation has improved now.
Our problem is that we are being pursued by Fairfax Solicitors on behalf of Max Recovery (Barclaycard/Mastercard) for the outstanding debt owed to them. None of our other creditors have been in touch. How are we supposed to deal with it as I'm sure that we are supposed to repay of debts on a prorata basis and if we come to some arrangement with Fairfax/Max Recovery and then sometime down the road another one of our creditors wants repayment where would we stand.
Should we make an agreement with them, if they accept whatever offer we can make or should we seek to potentially propose a new IVA - budget permitting and include our other creditors.
Your advice would be very much appreciated as I need to provide them with our I&E and payslips etc otherwise they would seek to get a ccj, payment order or bailiffs and as I'm trying to study, work and look after 2 small children whilst my husband works away Monday - Friday and would rather get this sorted as its now been going on since 2006 when the benefit of hindsight was not available!
If your income has now improved and it is stable enough to consider another IVA, then why not speak to a couple of IP companies?
You could contact a couple of the experts on this site or look at www.iva.com. Take some free and impartial advice and hopefully you can find a solution that helps everyone.
Other than that, you could look into a DMP. However, not all creditors will freeze interest or accept reduced payments so this may not be the solution you are looking for.
As you are now without the benefit of an IVA, you will be required to deal with your creditors directly to see if you can make arrangements to enter into a repayment programme - alternatively you could consider declaring yourselves bankrupt.
What advice did your IP firm give you in this regard when the IVA was failing?
Thank you for your advice. I don't think our IP firm (Grant Thornton) offered us much advice as my husband was out of work and I had a second child on the way and it was basically, you can't afford to pay it, no point proposing a variation so they proposed to terminate it.
Thanks for the link Kazzafunk - I am going to check it out because I think we need some impartial advice about our best course of action as I do feel that we weren't necessarily given the best information back in 2006.
Please don't get me wrong as I am not trying to shirk my responsibilites but hypothetically could I just start repaying back Max Recovery through Fairfax and wait for the others to contact us - if they ever do? Or should I make an effort to contact them?
Sorry for the questions but my head is spinning and I just don't know what to do for the best, who to speak with the get the most impartial advice and generally just floundering with life!
You could start repaying max recovery,and wait for the others to get in touch yes,but its often better to grasp the bull by the horns. There is little point in settling one debt if another company is continuing to add interest onto another debt faster than you can repay things,just means you are chasing your tail with your debts.
I would contact a few companies from the list at www.iva.com for advice,having 1st written out as accurately as possible a list of your income and an up to date list of all your debts(you may have to order a copy of your credit file if you have lost track of who you owe money to).
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I agree with Andy - could this a possibility for you Louisa so you do not have the burden of amanging the creditors individually?
Regards,
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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