My husband and I were in debt (lots of reasons ie becoming parents relocating from large city etc…) so we were finally at our wits end and decided IVA was for us as Rich (husband) is a police officer so bankruptcy was not an option if he wanted to keep his job. We ended up offering the insolvency people a Full and Final offer to end the payments. They accepted and it was completed last year. We also decided to sell our home as the mortgage payment were rocketing. We were left with a deficit of £28000 (second mortgage) which we have now offered them a Full and Final settlement figure of £7000. This they have verbally agreed to!!!
1. following our Full and Final offer I notice that they have still registered this loan as a defaulted can they do that as this will still be on our records for another 2 years is it?????
2. They have verbally told us that they agree to the offer however we have still not received this in writing and this is now about 6 weeks ago! I am still waiting for it in writing as they said that we could not give them the money until they had written to us. In the meantime we have not received any letters chasing money or phonecalls so is this ok or do I need to be proactive again and call them again???
3. Did we really need to go into an IVA as all our debt was on Credit cards and unsecured loans???
In reviewing your detail and what you have asked, it does appear an IVA was an option for you in order to avoid bankruptcy. IVA’s are for unsecured debts such as credit cards and loans. And the full and final is a way to get all your creditors on the same page, so to speak, as trying to negotiate with many different banks and creditors can be difficult.
Yes, definitely follow-up on the other settlement to see what is happening. You need to be pro-active here to get the issue resolved.
As for your credit and how the accounts may be reported, they can be reported as that you defaulted on them, but they should show a zero balance once settled. They can also be reported as paid, or settled, but for less then the full balance. And yes, anything must stay on your credit the full six (6) years. Regardless of this, your credit will rebound as the accounts are paid in full. And unless you will be looking for a new mortgage anytime soon, or applying for credit, it will not be an issue.
I hope this helps.
Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.
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