Advice needed about Insolvency Practitioners

Zoom_3

Hi

ok... I'm not personally in Debt but I do know what some of you are going through. I do however need some advice regarding my girlfriend.

My Girlfriend has just told me how much she is in debt and I'm chomping at the bit to help her in anyway I can. After reading the printout of Martin's cracking debt guide on the site she rang the numbers and they suggested several things including looking at insolvancy practitioners.

So she has found this website of some people who promise to look at her case and potentially reduce her debts by taking court action.

I won't name the company she is dealing with but they claim they are insolvancy practitioners and through a process of Individual Voluntary Arrangement they can help her. They also claim that it will not cost her a penny in doing so.

Has anybody had any experience of Insolvancy or anything that sounds like it??

All opinions would be welcomed....

Zoom

southernscouser

Hi Zoom!

Firstly please do name the company she is with. You might find you get different responses from people.

IVA's are quite common on this board. We can't really advise her to go for one or not without knowing everything she owes or see a state of affairs!

Who was it she rang who recommended insolvency practitioners?

Zoom_3

I can't exactly remember who it was she rang that suggested where she goto, but the name of the company is McCambridge Duffy LLP.

She owes something like 12,000 (looking more like 20,000 with interest) to her bank and 6000 on her credit card.

Whats an IVA all about??

rog2

Has she spoken to CCCS or PAYPLAN? They won't charge her.

james32_uk

See my post here. http://forums.moneysavingexpert.com/showthread.html?t=237135

IVAs are bread and butter for Companies like Duffy. I'd advise a call to CCCS or Payplan to talk through her options. They'll give her advice based on her circumstances rather than what will make them the most money.

IVAs are only one step from bankruptcy and I would have thought from the reasonably low level of debt she has there will be better options available.

Zoom_3

Thanks guys I'll pass on your very helpful advice.

Zoom

Wonder_Girl

Seems like she got advice from an IVA company, who make around £7k per IVA!

with debts like that it wouldn't be my first suggestion.

Any chance she can post her SOA so we are better informed before offering alternatives?

WG x

Dr.Shoe_2

Payplan do have an IP service which is genuinely free of charge.

Wonder_Girl

Dr.Shoe wrote:

Payplan do have an IP service which is genuinely free of charge.

There is still a fee for the IVA it's just not up front, you pay it throught your IVA term (5-6 years)

Addicted2Chocolate

yes thats right, all IVA's are expensive and a very large chucnk of the repayments made bythe debtor wil be taken by the IP in their fees and charges. typically they can take about half of all the payments.
Fast Track Voluntary Arrangement, which are supervisde by the Official receiver, have low fees, but you can only enter into one aftter having been made bankrupt:
http://www.insolvency.gov.uk/guidanceleaflets/ftva/ftva.htm

Wonder_Girl wrote:

There is still a fee for the IVA it's just not up front, you pay it throught your IVA term (5-6 years)