IVAs, are they good? Help needed :(

biglad

thanks very much for the reply, can you please tell me which company that you used? my head is in bits about what to do if im honest

sparkle84

Tr&#64 wrote: »

Perhaps somebody can answer this question then: I.P. firms get a lot of stick on here because of their fees but they CAN get the debts reduced and so can be worth the cost. If they can do this how come the free services cant ?

Insolvency Practioners (IP's) don't get a lot of stick on here , fee charging so called debt management companies such as spectrum get a lot of stick, if you go through payplan for example and decide on an IVA they will direct you to Shaw's, Grant Thornton are another reputable firm.

There is a lot of confusion on this board re IVAs they will cost a lot of money as they are (unlike DMP's) legally binding and in fact just one step away from bankrupcy, they must be run by an IP and their fees must be paid.

IP don't get the debts reduced as such, they work out what you can afford (pretty strictly) this is then offered to your creditors who vote on it. Debt Free Direct for example are always banging on about reducing you debt by 75% in practice this is very unlikely to happen, it is also up to your creditors not DFD to decided how much of the debt can be written off so to speak.

Luke1068

I understand what Sparkle is saying, but a decent IP will try to get the best deal, which is 'dooable' by the debtor and will do their best to pursuade the creditors that the propsal is the best option to bankruptcy. Mine managed to get rid of over 50% (rare case I know), but they do not want the IVA to fail, and neither do the creditors if they are aware that in the event of failiure, they will get nothing. The whole point of an IVA is that creditors will get something rather than nothing (in the case where the debtor has no assets to speak of)

Bishop Fleming in Bristol are superb.

sparkle84

Luke1068 wrote:

I understand what Sparkle is saying, but a decent IP will try to get the best deal, which is 'dooable' by the debtor and will do their best to pursuade the creditors that the propsal is the best option to bankruptcy. Mine managed to get rid of over 50% (rare case I know), but they do not want the IVA to fail, and neither do the creditors if they are aware that in the event of failiure, they will get nothing. The whole point of an IVA is that creditors will get something rather than nothing (in the case where the debtor has no assets to speak of)

Bishop Fleming in Bristol are superb.

Oh I agree with you but disagree with tv adverts for DFD guaranting 75% reduction I have no problem with IVA I may consider one myself over the next few months.

Addicted2Chocolate

the creditors do not pay the fees. the insolvency practitioner takes a massive amount of the payments you make as their time and costs are very high, so the creditors wont see anything like the money you pay into the IVA. I have seen examples on here of people paying in £50K and their creditors getting less than £10K...

biglad wrote:

ok got payplan getting in touch with me tomo.

i just want things sorted, and some reason just think an IVA is for me as it will give me a time when i know ill be out of debt. Thinking about things i did ask a few times about how much id get charged and he just kept saying the creditors will pay the fees and wouldnt give me a figure.

my situation is a bit strange, as i said im self employed but just took on a part time position to try and sort myself out so ive got something regular coming in. ive been thinking bout things and these IVAs seem a lot like them stupid consiladation adverts on the TV which ive always thought dodgy.

basically i just want all the letters to stop and to get the creditors off my back cos thats stressing me out big time if im honest and im struggling to motivate myself for my business

thanks for the advice so far

biglad

Ok things are finally getting sorted

Ive decided against an IVA for a few reasons which the nice lady (not like the man giving me the IVA). As i mentioned before im partly self employed and also have a part time position in the same job which ive took on to try and get myself sorted. Ive agreed to go on a DMP as if my situation changes i can readjust things which is good for me. also i dont want this debt to hinder me the rest of my life which an IVA could well do due to being on my records and restricting me getting a mortgage etc.

Just want to say thanks to those that helped me.

I know its not all over, but the relief from not hiding from it all is immense and knowing things are getting sorted.

one thing ive learnt form this is how people can easily take advantage of others in bad situations, the bloke didnt tell me the ins and outs of an iva. the woman from payplan gave me an iva as an option but we both agreed it werent for me.

so heres to the start of getting myself sorted

thanks again all