Failed IVA, very old debt - can I be chased for it.

[brewster0101]

Hi, my first post. I joined as this seems like a very good place to get advise.

Bit of a long story. I, like many people have made errors in the past with money and partners who spent too much!! ;-)

My first credit card would be over 10 years old now, my last credit agreement in the form of a loan was over 7 years ago. In between those dates I had racked up much debt on loans, credit agreements or credit cards.

Over six years ago I took up an IVA agreenment which covered all this debt. This was over six years ago now as it no longer even shows on my credit file. After two years into my IVA I had to cancel it, partner got pregnant and had to support her and a home for both of us. So the IVA failed, although on my credit file it always showed as 'satisfied'

Most of the debt on my credit file showed as defaulted. Now all this time later most of it has dropper off, only one left which comes of next month.

I have not registered on the elctrol roll since this IVA (so not black list the place we live) or connected myself to my wife financially as she has perfect credit score. (not the same partner from the beginning by the way!) Anyhoo, after all this time and now that my credit file is almost back to normal I want to put myself back on the electrol roll.

I go keep getting letters from one debt collector - Fairfax I believe. I ignore these on the advise of these forums. I did contact them once to see what it was relating to but never confirmed my address details or the debt. Since then we return the letters as ' delivered to wrong addess' I see from my credit file another debt collector constanty looks at my credit file - Lowell Financial. I have just received one letter from them regarding a different debt.

I am concerned if I do put myself back on the electrol roll, then these companies will try to chase me for all this old debt. i am sure they will. Fairfax have done nothing more than send the same recurring letters but never taken any action.

Is the debt too old, because of my IVA does this mean I can use the 6year old rule? any advise would be great.

Is is worth me ignoring them, or maybe even requested to prove a CCA.

[MrsD]

Re: Failed IVA, very old debt - can I be chased for it.

Hi Brewster

Welcome to the forums. I'm Scottish so my IVA knowledge is pretty slim since we have something different here in Scotland. I am sure someone will be along in a mo with more local knowhow. Meanwhile when your IVA failed, it is odd that it was showing as satisfied. Do you know which debts Lowell and Fairfax are fishing about? and were those debts in the iVA?

[brewster0101]

Re: Failed IVA, very old debt - can I be chased for it.

Hi Brewster

Welcome to the forums. I'm Scottish so my IVA knowledge is pretty slim since we have something different here in Scotland. I am sure someone will be along in a mo with more local knowhow. Meanwhile when your IVA failed, it is odd that it was showing as satisfied. Do you know which debts Lowell and Fairfax are fishing about? and were those debts in the iVA?

I know which ones. All my debt was covered in my IVA and I've had no debt since - so yes they were covered by it.

[MrsD]

Re: Failed IVA, very old debt - can I be chased for it.

I've had a wee look Brewster and I can't see anything to say that any other conditions apply other than the normal 6 year statute barred rule. it seems that a great many failed IVAs result in bankruptcy but you seem to have avoided that. I think if the debts are all statute barred , Lowells and Fairfax are just fishing, they are not above trying to get people to pay statute barred debts. I would probably just ignore the letters, going on the electoral register may well bring more out of the woodwork, though! Maybe someone else is more familiar with this scenario!

[swanfan]

Re: Failed IVA, very old debt - can I be chased for it.

Hi brewster

I'm not an expert on IVA's but i think Mrs D's right about it being statue barred, & i found this on an IVA advice site:-

"If the debtors IVA fails for genuine reasons – loss of job; bereavement etc and he/she has no additional assets then creditors are unlikely to pursue a bankruptcy – particularly as the cost of a Creditors Petition for Bankruptcy is more than £1500 per case, very few will “throw good money after bad"

Quote taken from here--> http://www.ivaadvice.org.uk/iva-court-action.php

[brewster0101]

Re: Failed IVA, very old debt - can I be chased for it.

I think my biggest concern is because the IVA only failed just over 4 years ago , is my debt still statue barred.

To add more to my plot :

When my IVA failed back over 4 years ago, I had one statement from a creditor. It was no different than the day I started my IVA. I contacted them to see if they had received any payment - they had not.

Contacted IVA company and they had kept all my payments for admin fees - in excess of £4,000.

So none of my creditors have received any payment or contact from me for over 6 years. But don't the statue barred rule from the date my IVA failed, or from the day my creditors last received any money or contact from me.

This is why I am contemplating challenging them to prove CCA.

My latest letter from Fairfax goes like this :

You have failed to respond to our previous letter and our instructions are now to commence further action.

Our previous offer of significantly reduced settlement figure has now been withdrawn and the full balance of £xxxxxxx is now due.

We now intend, without further notice to :

Issue legal proceedings against you - a county court judgment order would be sought against you and if obtained etc etc etc

or:

Instruct a debt collection Agent etc etc .

-----------------------------

I know a debt collection agent has no authority with out a court order, not concerned about that.


Fairfax have been chasing me for a while now. Once or twice I have has the wife contact them to tell them they have the incorrect address.

[MrsD]

Re: Failed IVA, very old debt - can I be chased for it.

Statute Barred debts become statute barred 6 years from the last date of acknowledgement or payment, if the IVA company didn't pay anybody, then there has been no acknowledgement. First thing I would want to know is where all the money you paid went????

[brewster0101]

Re: Failed IVA, very old debt - can I be chased for it.

I am going to contact debt free direct tomorrow and see if I can get the exact date my IVA failed and also exactly who, if anyone got my money. Hopefully they will have some record of it.

So if we conclude the debt is statue barred, should I reply to the letters? - or even if the debt is not statue barred, shall I reply with the template used any way - to see if that gets them off my back.

[MrsD]

Re: Failed IVA, very old debt - can I be chased for it.

I wouldn't send the CCA request because if it is statute barred, it doesn't matter and they don't have to keep stuff after 6 years anyway. There is a "prove it" letter which may be more appropriate but the first thing to do is find out about the IVA, when it failed, get a definite date then we can check if they actually are statute barred.

[Deepie]

Re: Failed IVA, very old debt - can I be chased for it.

I would hang fire untill Niddy gets back another week will not make much difference:niddy

[jen_br]

Re: Failed IVA, very old debt - can I be chased for it.

Firstly I agree hold fire right now gather all your facts.. Id like you to organise the thread a bit better

List your criedtors and how much you think you owe also list when you took out the debt (roughly if you don't know exact) and when the last payment on it was( bearing in mind the bloody IVA company took most of it!)

Start with that. It could very well be statued barred or close to it and you don't want to rumble feathers JUST yet.

Ok?

[brewster0101]

Re: Failed IVA, very old debt - can I be chased for it.

Haven't been able to get hold of IVA company. Bank Records show last payment to them was August 2006.

Last payment to any of my creditors was November 2004.

I'd rather not list the creditors in a public place, and too be honest I can't recall the amounts owed but it was around £18,000 in total.

I took an old fashion route to my problem, which has worked for the last 4/5 years. I just contacted the debt collection agencies and told them a fib about being someone else and the person they were looking for had moved out.

[Deepie]

Re: Failed IVA, very old debt - can I be chased for it.

I would say say they are statute barred by now, but Niddy may have some better advice on how to go forwards.

[brewster0101]

Re: Failed IVA, very old debt - can I be chased for it.

I am 50/50 thinking they are statued barred. I've been running from these debts for a number of years now - since the IVA failed really. Never had any CCJs or anything like that from any debt collectors. So they have never taken any firm action to get money from me.

Maybe worth trying to get hold of this national debt line I hear about.

[Never-In-Doubt]

Re: Failed IVA, very old debt - can I be chased for it.

Brewster,

These debts are NOT Statute Barred as you last paid in 2006, which means that they become SB'd in 2012 - i.e. 6 years from last payment or acknowledgement of the debt. You mention that you failed the IVA and payments may not have reached the creditors; so what - the fact you (and they) agreed to an IVA means the statute barred clock in effect takes place from the date it failed, not the date it started.

So, as you're only a year away and the leeches (Lowells etc) are clearly doing their annual chasers, i'd sit tight and do nothing - wait until 6 years after the failed IVA (i.e. September 2012) at which point you can be 100% certain they are Statute Barred.

However, that said you need to get on the Electoral register for the following year so at least by 2012, you'll be showing up and will be able to open a bank account to start with - so go here ---> Register on the Electoral Register and register asap (don't worry, the remaining DCA's may well search you/write to you but just do as you are doing, send it back as unknown - they cannot do anything at this late stage).....

Make sense?

Niddy
:niddy