Went to CAB yesterday - now confused

jabb78

Morning all,

Well that was interesting! Just to summise, I have 60k of debt after ex wife went bankrupt. Our old home was repossesed with neg equity etc. I have ok job, bring in around 1800 a month.

Anyway before I went br or anything else thought I would take some extra advice from CAB - already been ands spoke to cccs but got an appointment thru and thought it is best to go.

Basically I felt throughout the whole interview he was pushing me towards an IVA. He eluded to the fact the CAB have links with 2 iva companies. He did concede bankruptcy was an option but that I should look at PAYPLAN and IVA. Does this seem right? Surely with my level of debt, no assets, moderate income and with a repo already - bankruptcy is surely the right route?

Just when you think you have made your mind up eh!!?

Ta

peachyprice

I have to say, it does seem pointless recommeding an IVA bearing in mind you have no assest and already have a mortgage shortfall. Seems the advisor missed the point.

Hey ho, you've taken advice, you don't have to agree with it, you're still free to do as you wish.

Doucam

We went to the cab and she started off trying to push us down the IVA route as well, didn't want to speak about br at all but did grudgingly give us a booklet about it!

We drove off a bit disappointed tbh, and ignored what she said, came on here did the forms, and when the judge asked did we take advice we confirmed we had from the CAB, he didn't ask if we had taken her advice just if we had got advice!!

fredfedup

I waited 4 hours to see the lady at our CAB. It turned out we knew more about Bankruptcy than she did! She was lovely, but really the only useful thing she did was book the appointment at court. With everything you have said , I would definitely go the BR route. I am rather cynical about IVA's ( seems to me you are technically Bankrupt for five plus years anyway) If you have no assets, go BR and it will all be over in a year (or 3 with an IPA!) either way still wins hands down.

k2nga

It does seem like the CAB is pushing more for IVA's and most of the time it seems wrong advice which seems strange. I wonder if they are under pressure from the government or are getting funding from the IVA firms i would hope not as they are supposed to be independent but it does make you wonder.

brokeinbristol

Our CAB also bigged up an IVA, but they did make us an appointment with an insolvency practitioner (free of course). It was only from that meeting that we had enough info to def decide on BR, and to be honest haven't looked back. Process is by no means easy, but absolutely no regrets, so far.

debt_doctor

I'm horrified by what I read on this thread !

All I can say is that in our bureau and in all those I have contact with, we are very much anti IVA as they are the right solution only in a very small number of clients (I think ive recommended IVA in about 3 or 4 cases in 5 years, similar to my colleagues.)
I am also not aware of any financial arrangement between CABX and IVA providers, even a wiff of such a thing would cause uproar I assure you !

Extremely worrying, and blatantly bad advice not in the clients best interests.

DD

FacingReality

I visited the CAB last year with similar level of debts, all unsecured. No mortgage though. Pretty much straight away the advisor said bankruptcy would be my best option. I mentioned IVA but he said I could look into it if I wanted but definitely wouldn't recommend it for my situation. In fact, it was only after my CAB meeting did I ever consider bankruptcy as it just wasn't in my thinking until then.

k2nga

It does seem strange that the CAB have suddenly become so IVA friendly maybe its the training of new staff that are maybe not seeing that BR is the best option.

philnicandamy

I can only echo what DD has said...the bureau i'm training in are VERY anti IVA but will reccomend it as an option if it's the right solution BUT that tends to be very very rare so i'm told

Snippa

It's not really up to a CAB to "advise" in the sense of telling you what to do, or pushing you one way or the other. The "advice" should be about giving you all the facts, and letting you decide for yourself what the best option is for you, pointing out the pros and cons of each option, and letting you know if some are really not in your best interests, or not possible.

Bankruptcy is always given as the last resort option, for the simple fact that it is the last resort option. That doesn't mean it isn't obviously the best one for someone to go for first in some cases, but in any advice situation, I guess it would have to be classed the last resort. That said, here in Scotland, CABs seem to be going for LILA very strongly - really easy and quick bankruptcy if you have no assets and low income.