IVA choices !

Deus_DNE

Hi,

With a joint debt of £27k on a loand and credit cards, we have been looking at ways of reducing our monthly payments as getting through the month is getting more and more difficult.

I have looked at CCCS, done their debt remedy thing, but really dont think I can enter into attempting to do this, as there is no legally binding agreement that stops them demanding more funds than agreed. Obviously i stand to be corrected on this.

I have spoken to Churchwood Financial (they rang me so thought i might as well), who have offered to put together an IVA costing £354 a month, for an admin fee of £450. I also went to a local IP who seemed amazed that they thought they could get £354 approved. He was saying £500 was more realistic, but there up front admin is £1150.

I guess the question is...what are peoples opinions on who to go with for an IVA?

Vague i know, but im still trying to get my head around all this

Cheers

Deus
--
DNE

Charco_2

:eek: Neither of these two companies. I know who these companies are but i did not know they charged a fee like this!

The monthly figures they are quoting you would depend on your actual situation... if you have £1500 coming in every month and you need £1150 each month for food shelkter heat and light etc then you'll pay (1500 - 1150 £350 in an IVA, If you have £2000 coming in and you spend £1500 on essentials then then you'll pay contributions of (2000 - 1500 £500... you pay whay you can afford to pay, no more nor less! Anyone advising you would need to go through an income and expenditure with you.

However! You should not pay a fee for this! You are in debt and need a way out, not another expense!

The way an IVA is paid for comes from the monthly contributions you make... there should be no extra expense. The IP earns a fee from this agreed with your creditors! Especially since there is no guarantee that your proposal will be accepted, an IP con only put together a case for you and will only do so if it has a reasonable chance of success.


If you like, i can recommend a company who wont charge a fee until they've actually done something for you!

Deus_DNE

Thanks Charco, that wud be most appreciated.

Churchwood have done income and expenditure with me, and the £354 was based on that.

You are 100% right about upfront fees, it jst flies int he face of what an IVA is supposed to do for you. I appreciate that thee companies take their cut out at the end of the term, but to ask you to pay up front to set it up seems a bit ridiculous to me.

Deus
--
DNE

Charco_2

I'll PM you.

Proverbs_31_woman

Can you also let me know as today I arranged to be sent forms from baines and ernst and they told me my payments would be roughly 336 a month and the first two payments go to them before my creditors even get any!

Charco_2

Does that mean you would effectively be paying 62 months in stead of 60?
Does it mean they will not aim to have your solution in place before you have made the two payments?

I know the banks have made the industry very difficult and last year saw a lot of IP companies pull out of the market. I was also aware that some companies had mooted the idea of pre-payments to make up for the shortfall in fees during the proposal but this cannot be done to the detriment of the client's situation. It doesn't make sense!