why does everyone appear to be against IVAs?

mistercovert

I started my IVA in November 2003, I got out early in 2006 by re-mortgaging and giving the creditors a 36p in the £1 offer which was accepted. The IVA was set up painlessly my the company based in Northern Ireland, and whilst it was being setup I had just one phone call from my creditors asking for payments. I suspect now the process is a lot more painful and creditors will push for more money, I was lucky I suppose but it turned around my whole life. Yes The IVA company did get a fair percentage of the pot but the creditors were happy the amount they received.

Has anyone else any positive experiences of IVA.

Rob H

worried80

I started my IVA in 2002, For the first 2 yrs of my IVA i was over the moon with it, it was the best thing i did..until I fell into trouble due to relationship breakdown etc...I was told at the beginning that if ever I found myself having difficulties, then to let them know straight away and they would help me. This proved not to be the case, and they didn't want to help, or should I say refused point blank despite numrous letters I sent them with revised income/expenditure etc.. I went with a company who weren't advertised on tv, and he was a specialist in IVA's etc, and from a reputable company. I did research first, and made my own decision, I was unaware I was unsuitable for an IVA - I had no assets whatsover. Looking back I think I was misold the IVA, and should have continued with the DMP. They petitioned for my Bankruptcy, and I now have to deal with that. I wouldn't reccomend them now, but for some they are suitable, but would urge anyone to do their research first, and think 'is this really the best solution. It can work, and for somepeople like yourself, and many others was the best thing.

moneysavingplumber

mistercovert wrote: »

I started my IVA in November 2003, I got out early in 1996

Is that 2006?

I started mine the same year as yours and completed this year. I suspect mine was with the same provider as yours who I think are one of the better companies out there and I had no problems.

I don't think there is anything against IVAs per se, it's more the way they have been sold to people they are clearly not suitable for, and there are awful consequences when that happens, and many people end up bankrupt having paid thousands into the agreement they should have not entered in the first place.

mistercovert

I was with McCambridge Duffy. I think during my time with them I had 2 phonecalls from them. I sent in my payslips every three months, got a bill back, paid and did a yearly expenses sheet. I was lucky I started an IVA when hardly anyone knew what an IVA was. They were not advertised on the tv or in newspapers then. I consider myself to be very fortunate.

Rob H

mistercovert

I remember when I doing my statement of affairs I was told by the people setting up the account to claim for Sky TV and to declare that I was a 20 a day smoker! I claimed for the Sky but never for the cigarettes, I did not twig on that they were trying to be beneficial towards me. I suspect the companies are a lot more tougher now.

Rob H

tommo20

Hi MC, and welcome,
First of all congratulations on getting through the process.

The idea is a good one if you have assets you wish to protect. You obviously did and you still have (which you probably would have lost going BR)
But the over enthusiastic selling practices of a few have tarnished the name.
As I say I admire you for getting through but in this current climate of dwindling house prices and negative equity anyone currently in an IVA may not be able to to "buy out" as you did.
I suspect that when you entered into yours the industry was a little more cautious with what it could and couldn't get away with. Now It would seem things are different there are too many negative accounts (not just on this site) speak to any debt counsellor.
A personal view...
My own experience with a company in Northern Ireland was not at all painless (took 4 months to start up) and was even worse when I tried to get a variation when my circumstances changed for the worse.
I suddenly had no income and provided more than enough documentary/medical evidence to prove my health was not going to improve for several years (if at all) they hounded me for payment and piled up 'arrears' notices, etc, after 5 months of this I changed my approach and told them I was going BR and they suddenly became my best friend... offered to re-negotiate with my lenders and asked for a whopping fee in addition to the one already paid. It took 8 months to reach this point in the negotiatons. I went Bankrupt instead.
The Judge and the Official Receiver made it clear to me that my story was one of many they had heard concerning IVA's.
I am embarrassed that I fell for the pitch as I have subsequently discovered that I should never have been enterd into an IVA.... I thought I was doing the right thing after all I was advised by an "expert"
Hopefully this IVA resource bar will unearth more success stories like yours.
Although I suppose if you are happy with your IVA there would be no need to be here.
Cynical......strangley no.
IVA's protect your assets and if you are advised properly in the first place then I'm sure they work.
Cheers

Deep_In_Debt

The BR board is full of people who have failed IVA's due to be being mis-sold and mis informed.

As others have said, a lot of them are mis-sold and people are not aware of the conseqences when it may have been quicker and cheaper to have gone BR in the first place. Also a lot can happen during the term of the IVA and you are stripped back to the bare minimum for living expenses (they appear to take no account of fuel rises etc) and are not very flexible.

I didn't go for one as I only have a small mortgage which is due to be paid off in just over 5 years anyway and can't afford to re-mortgage thus not actually clearing my debt but adding to it by way of mortgage and also re-mortgage would take me into retirement. A dmp was far more flexible for me and I'm due to clear my dmp about the same time as my mortgage any way so I'm glad I was not taken in a year ago by one of the money making IVA sharks out there.

It suits a few people and a few do manage to complete them.

taplady

So far I have a positive experience of an IVA although I have 2 years left to go. I took advice from CCCS and although I have no assets decided against BR, wanting to pay as much as I could off without it taking years and years.
It has gone very smoothly with a couple of alterations in our payments 2 higher payments and 1 being lowered. We also had 1 month off due to the expense of car repairs and repaid this amount over 10 months as they wouldn't let us add a month on at the end.
Of course things have been tight but we keep our living expenses as low as possible and money we save on food etc goes into other areas. I also budget well for additional expenses such as Christmas etc throughout the year.
I am determined to get to the end of this IVA no matter what it takes then we can enjoy a better standard of living again and no debt hanging over us ever again!:j

Our company was Baker Tilley - now called debt lifeboat.

Trollfever

IVAs aren’t for everyone. Leading debt help charity the Consumer Credit Counselling Service
recommended IVAs to only 3% of people with serious debt problems in 2006. There’s a
real danger that taking out an IVA unnecessarily will leave you facing the prospect of bankruptcy anyway, despite having laid out £1000s in set-up fees.

From:

http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf

toby_puppy

Hi - sorry if this is not the correct area to post in!
My brothers fiancee has an IVA - it is has 2 years left to run and no problems up to now. I think it's with Baker Tilly - offices are in Euston, London.
I'm just wondering as I helped by taking out a mortgage in joint names with my brother to help them get their first home - should it be easy enough for her to go on the mortgage instead of me when the IVA has finished?
Sorry if this is in wrong category.

peachyprice

jostenning wrote: »

- should it be easy enough for her to go on the mortgage instead of me when the IVA has finished?
Sorry if this is in wrong category.

It's very unlikley she'll be able to get a mortgage for a fair few years, her credit rating will be shot to bits, an IVA has the same effect on your credit file as bankruptcy and is recorded on the Insolvency Register.