IVA questions

Jen37

Hello all, I'm hoping some of you might be able to point me in the right direction....

Almost two years ago,myself and my husband entered into an IVA with DebtMatters. He was struggling badly financially, and I was not solvent enough to help. A bit of panic and a knee jerk later and there we were in an IVA.

I firmly believe we should never have been allowed to start an IVA. We had never defaulted on anything, and both have reasonable jobs which pay reasonably well. In the end, the payments we are having to make are actually almost the same as the payments we were making anyway, and the last two years have been a struggle.

When DebtMatters went under, we were transferred to Payplan, who I have not so far been the least bit impressed with, but we soldier on.
We are looking at a probably major increase in the payments we have to make with the March review with some trepidation, and have recently been contacted by a company called IVA Consumer Action, who claim that we were mis-sold the IVA and should go bankrupt instead.

I am aware that these people are probably no more unbiased or trustworthy than DebtMatters were, but it has brought all my doubts and worries to the surface again.

My questions are these - Is there actually any way to extricate yourself from an IVA which does not include bankruptcy?

What if we were mis-sold the plan?

I really hope someone can help me, even a little bit. Many thanks in advance,

Jen.

dubiousone

Hi Jen. I too am in an IVA and greatly believe I was mis-sold it. Please please stay well away from consumer credit action or whatever their called, they charge £1,200 to make you BR excluding the BR fees, they're vultures!. If you wanted to go BR you can do it all yourself with help from the BR board.

If you want to get out of the IVA, I would suggest you write to all your creditors and explain to them that you believe you were mis-sold the IVA and if you were to cancel the IVA would they be interested in making appropriate payment arrangements with them personally. Someone more knowledgable than me will come along I'm sure but I do believe that by law you are entitled to cancel your contract/agreement with an IVA company, it may be worth searching on internet. However, if you fail IVA by missing the stated amount of payments that constitutes a failed IVA in your contract, (usually 2/3) then the company would threaten BR. However, they would probably have to get creditors to make you BR. If you had already previously wrote to the creditors explaining you would like to agree payment arrangements with them, they are unlikely to authorise BR.

Hope this helps a little. Good Luck!!!

charliewalsh

Hi Jen,

I was sold an IVA bt Debtmatters and now with Payplan. Agreed, not impressed by both. I have recently missed some payments due to the increase the put into the plan from 460 to 535 - I was struggling with 460 then and now 535 - there is no way I can find the money - my actual disposable income was only 250 but Debtmatters manipulated that to get me through IVA, just for the sake of it.

Payplan pointed out that I have 12 months discretion throughout the term of my IVA, i have now used up 10 months out of the 12 months - my option is to go on a DMP or Bankruptcy.

DMP - you will be paying your debt for the rest of your life depending on the amount you owed. Bankruptcy - look into the Bankruptcy and Living with It Forum - you may be able to see the entire situation in a different light. Or speak to your local Insolvency Practitioner. They will give you free advise as to the best option for you.

As for mis-sold of IVA- there is a chance to get some justice - contact Atherton Baileys - they has been representing people like you and me for over 2 years now, pursuing Debtmatters for mis-sold IVAs. If you feel that you want to join the group (which is free), here's the contact:

Mr James Pretty
Atherton Baileys
99, Leigh Road,
Eastleigh,
SO50 9DR

Tel: 02380 651441

Hope these help. Sorry for the waffles.

norristheboss

When reading these comments it does make me laugh to see, dubious one has put these types of companies are vultures! what does that make the iva company for miss-selling them in the first place.
if you are in debt get online to insolvency.gov.uk
free advice not like any other company!

Charco_2

While i dont rate the service you have received in until now, neither do i believe in wide-spread mis-selling of IVAs (altho definitely some companies give the industry a bad name).

However before anyone goes out throwing away an agreement and two years of hard work and payments there are other routes to look into first.

Perhaps you simply dont want to pay your debt! You opted for an IVA coz it seemed like a short cut. Now a company has come along, having found your name for free (and looking to take advantage), and offered you a further shortcut which you feel like taking.
DONT DO IT!
If you want out of your IVA simply stop paying it. There you go, you're free! I can assure you the company who have contacted you know nothing about your finances and nothing about you besides your name (they're fishing - dont get caught)! They have not seen your IVA, your debts, your income... They could not possibly know whether or not you were mis-sold an IVA. All they know is that you do have an IVA.

If you do decide to go with them, they'll help you go bankrupt for a huge fee - which you can do yourself no bother for 1/3 the price (Bankruptcy costs about £510 - although some of this can be waivered if you don't have it all - IVA Consumer Action will be looking for a fee of over £1000 to extricate you from your IVA first, and then charge you the bankruptcy fees too).

There is no magic trick however, they're no tough battle to free you from your oppressive IVA. Here's how it's done:
You simply stop paying!
Your IP will fail your IVA after three missed payments and inform your creditors. Your IP will take his fee for the work he has done and might offer
1. to bankrupt you with anything that is left over OR
2. he could simply disperse the remainder aming your creditors...
(And your creditors are not going to bankrupt you because they wont spend their money freeing you from your debts to them)

However, before it goes that far, the First thing i would do is INSIST that your Income and Expenditure is re-done and a creditor's meeting is held to either agree or reject your new reduced monthly contribution (a figure you CAN afford). It is YOUR proposal! Whoever your IPs are, Payplan/Debtmatters, they're just the referees. They cannot refuse your offers, only your creditors can do that.

Charco_2

I've just discussed this with someone and come across a number of other angles/or points that are worth taking into account before making any drastic decision. If you do now fail your IVA you will EITHER
- be left facing the debts you tried to get away from two years ago (plus interest etc... OR
- if IVA Consumer Action "help you out" you will be going Bankrupt

1. Bear in mind that you have shown for the last two or so years that you can afford a reasonable amount monthly contributions - it is just as likely that you Official Receiver would demand a similar contribution on an Income Payments Order for three years in your bankruptcy.

2. If your various incomes have increased over the last few years while in your IVA then your IP has only been interested in HALF this growth. In a new bankruptcy, your OR will be interested in your FULL SALARY for making his calculations on your affordable IPO

3. Your IVA was registered on your Credit File two years ago, in four years time there will be no marker left of it. If you abandon your IVA and go for an alternative route then this will allow for further marks on your Credit FIle which will take SIX YEARS to go away (and some marks of Bankruptcy never go away).

(I do not work for any of the companies named above anywhere in this thread, these comments are impartial and ultimately any decisions you make are your own)