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

[brewster0101]

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

So twelve months have passed since my last post. Still not enrolled on the electrol register but we moved 11 months ago into a bigger rented accommodation through a letting agents. Passed all the credit checks on my own...

At the same times checked my credit file which is now clean, nothing on there.

Our council send out the electrol roll forms in December , I guess it is now safe to go on it and any debt collectors letters I return with a statue barred response..

[Never-In-Doubt]

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

Wise man

[brewster0101]

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

Going on the ER right now is a huge mistake, I would strongly urge you not to.......

Heard

Understood.

Thanks for all input... I will hang on to my hat and see how I feel in 12 months time.

[Never-In-Doubt]

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

To be blunt, as I need to leave the office for the day now, you risk reviving all old debts as a result of 18 months waiting time..... I would, if I were you, try anything OTHER than allowing that risk to catch up with me, even so much in that I'd not move if it meant it was the best thing to do.

I am not saying not to move, I am saying weigh up the odds - right now you have cash to afford it, will you if these debts find you as a result of going on ER? Have a long hard think whatever you do mate

[Never-In-Doubt]

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

The wife couldn't do it on her own. She only works part time. - Her credit file is perfect though and she is on the ER.

I work full time and have a perfectly good salary. We've rented over 5 years in two different homes and have never had issues with payments or landlords. We used my parents as guarantors last time ( 18 months ago ) I don't want to do this again though. I want to do it on our own.

Affording a higher rent is fine, our salary is more than enough.

Just get the wife to do it, using combined family income.....

[brewster0101]

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

The wife couldn't do it on her own. She only works part time. - Her credit file is perfect though and she is on the ER.

I work full time and have a perfectly good salary. We've rented over 5 years in two different homes and have never had issues with payments or landlords. We used my parents as guarantors last time ( 18 months ago ) I don't want to do this again though. I want to do it on our own.

Affording a higher rent is fine, our salary is more than enough.

[Never-In-Doubt]

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

Old debts started back in 2000, up to 2004 - Value of £18k over various creditors.
IVA taken out in Jan 2005
Stopped paying Aug 2006
According to Debt free direct, IVA failed May 2007
No creditors received any payment.

Since then a couple of DCA's have been sending me letters. Generally most are sent back as unknown person at address.
I've been of the electrol roll since 2006.

I am trying to establish the risk of going back on the roll. I don't want to get credit, but I do want to pass a credit check if we move into a new rented property.

Hiya

Ok, so you stopped paying Aug 2006 - so from August 2012 they will be SB and not a minute earlier. Going on the ER right now is a huge mistake, I would strongly urge you not to.......

You say "we" - can the other party not take the tenancy? Also rental accommodation is not credit scored, moreso credit based to see if you can afford the rent etc - if you have a good story lined up about how you used to be able to afford things then got made redundant etc and couldn't maintain the payments, then you'll be fine as this is not a barrier to refusal of rental.

You'll be fine. However there is a risk that a lender or DCA may write, yes.

[CleverClogs (RIP)]

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

bust most do.

[brewster0101]

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

Old debts started back in 2000, up to 2004 - Value of £18k over various creditors.
IVA taken out in Jan 2005
Stopped paying Aug 2006
According to Debt free direct, IVA failed May 2007
No creditors received any payment.

Since then a couple of DCA's have been sending me letters. Generally most are sent back as unknown person at address.
I've been of the electrol roll since 2006.

I am trying to establish the risk of going back on the roll. I don't want to get credit, but I do want to pass a credit check if we move into a new rented property.

[Never-In-Doubt]

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

Thanks Niddy, that is very interesting and also concerning at the same time.

I am going to hunt around for some cases of people like me with failed IVA's and see if there is much advise or evidence of people who have challenged DCA's in regard when the debt was statued barred.

Hiya

What exactly is your problem, maybe I have missed it but can you briefly elaborate in as few words as possible, what has happened? If you had an IVA and stopped paying into it, the defaults would normally already have gone - based on you being in debt for a while prior to the IVA, so what I can't figure out is why you're asking these questions?

If you are in an IVA and stop paying it, then the IVA company have a duty to report it as "failed". That's that.

Statute barred would arise once 6 years have passed from the date of failed IVA - or, if you like, the date you last paid into the IVA - however be careful as it can sometimes be a month or two behind from you paying the company to them allocating it to the beneficiaries. Thus lets assume you last paid an IVA on 1st May 2005 it'd be SB on 1st May 2011; however we'd suggest you wait until at least 1st July 2011 before contacting anyone.

Now, that deals with that side of things. Lets now move to the scenario that you done the above and the dca etc is now chasing you - is that where we're at? ie you're being hassled by a DCA for an old failed IVA appointed debt?

Cheers

[brewster0101]

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

Thanks Niddy, that is very interesting and also concerning at the same time.

I am going to hunt around for some cases of people like me with failed IVA's and see if there is much advise or evidence of people who have challenged DCA's in regard when the debt was statued barred.

[Never-In-Doubt]

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

And based on the fact that in the over 4 years they've been trying to contact me, they haven't issued a court order or CCJ - One would assume they aren't going to and have no plans too.

Not at all, they may well do it in year 6 when most DCA's become more active.

There is a simple process that most DCA's work to, that is to aggressively pursue the debt in years 1 & 2 as there are high odds a debtor will give in and pay. Lets assume you don't give in, then from year 3-5 you'll find the odd debt trace search appear on your CRA's and they'll contact you every 6 months with a standard chaser letter (so twice a year) and then in year 6 they either hunt you down using Experian Data Analytics based systems and/or they'll miss it and you'll walk away with a SB debt in tow.

Now, thats not to say all DCA's work like that, bust most do. Its the simplified way of debt recovery, ie the middle years are the least important.

I have seen a lender issue an N1 3 months before SB due date, so they waited a full 5 years and 9 months before doing this. Obviously the defendant won based on the fact the lender had ample time to obtain judgment as they'd never moved or anything, they just stopped writing (the bank did)....

So in a nutshell, until 6 years are up you'll have no idea what a lender or their appointed DCA is planning......

[MrsD]

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

never ever assume anything, just keep a close eye on it.

[brewster0101]

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

And based on the fact that in the over 4 years they've been trying to contact me, they haven't issued a court order or CCJ - One would assume they aren't going to and have no plans too.

[Never-In-Doubt]

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

This whole process is explained in the default section. Basically you can only be defaulted once for each debt, ie account, no matter how many times it changes hands/gets sold. That default lasts 6 years and pretty much sits there whether you pay or not until such time it gets superseded by say a CCJ.

So, lets say you're already 6+ years into the default then there will be no record of it, however they could still get a ccj after this, because although the default will have expired, it may not be statute barred thus they can still enforce it - so the only marker that could affect the default would be a ccj.

However, lets say you ignore a lender for a full 6 years then the debt becomes statute barred and the default would also drop off leaving this debt finished - dead - whatever you want to call it.

Make sense? One debt = one course of action (i.e. default / ccj)