The Bankruptcy Club & Supporters Club

rog2

scootw1 wrote:

Regarding gambling on the forms, I have played a local lottery for the last couple of years and The National Lottery. £2 a week for two years = approx £200. Do I need to put this down as money lost?

No you don't.

sandralovescats

Changes to the IVA System

Have you seen that from Monday 20th November there are going to be changes to the IVA system?

At the moment it is the big accountancy firms that do the voting on behalf of the creditors - the likes of Price Waterhouse, KPMG, Grant Thornton, etc.
From Monday they are starting a gradual changeover so that the IVA proposals go to a centralised service who will make the decisions on whether or not an IVA will be accepted. Apparently, it will mean that these 30p/40p in the £ proposals will no longer be accepted, since the creditors are wanting more return for their losses.
What does all this mean? More and more people will turn to bankruptcy because they will not be able to afford the IVA repayments.

I fail to see how this will repay the creditors any more money, since in bankruptcy in most cases, the creditors will get little or no money back.

Has anyone else seen this news? What do you think?

ZTD

I think the idea behind this is there are some people on an IVA, when they should be on a DMP or similar. I think it also ties in with someone (I believe it was you - but I could be wrong) saying that companies are miss-selling IVAs.

It looks like the creditors are wising up to this. Also it may be that the accountancy firms have not been exercising the duty of care they should have - after all - it's not their money.

The creditors will find out through experience whether this is the right approach.

sandralovescats

Yes ZTD, it was me who posted about the DMC's miss-selling IVA's but this is not quite the same thing. I was originally complaining about those dratted ads on tv, which quote "90% of your debts written off", which is simply not true.
If the whole affair is centralised, then it will mean that a lot of people will not be able to do an IVA at all. Simply because they will not be able to afford to pay back 50%/60%/70% of their debt - not over 5 years anyway.

It will send thousands of people into bankruptcy which otherwise wouldn't have needed to do so.

The IVA's were originally set up to help people out of a debt problem, where they could realistically pay back some of their debt, without having to go bankrupt.

To me, this new system is going backwards not forwards, and has been driven by the creditors. I think it will backfire on them in a big way, with a high percentage of their customers.

scootw1

Does this only affect IVAs? It won't have an effect on bankruptcies?

ZTD

sandralovescats wrote:

It will send thousands of people into bankruptcy which otherwise wouldn't have needed to do so.

I would doubt that. Why? Because as you pointed out, the creditors lose money when people go bankrupt. They aren't the sort of people to tolerate that situation for long.

sandralovescats wrote:

The IVA's were originally set up to help people out of a debt problem, where they could realistically pay back some of their debt, without having to go bankrupt.

I wouldn't believe the hype about it being the end of the IVA. The area they're trying to deal with is people on IVAs when they should be on DMPs. Forcing people into bankruptcy when they could be on IVAs would be costly to them.

Why are enough people on IVAs when they should be on DMPs? Well that goes back to what you were saying about those companies misselling IVAs. They missell them because they get large fees for them.

sandralovescats wrote:

To me, this new system is going backwards not forwards, and has been driven by the creditors. I think it will backfire on them in a big way, with a high percentage of their customers.

It'll only go bad on them, if they screw up. They will screw up - in the beginning, but not for long. I don't see them throwing away money for long - it isn't their style.

In fact, I would imagine that the creditors will take over the running of the IVAs from the "middlemen", and pocket the fees themselves. Just a hunch...

alidadas

Hello everyone!

I'm new to this site so thought I'd say hi!

On the 5th of December I will be going bankrupt! I completed for forms online at the beginning of the month, phoned the court and that was the earliest date they could fit me in!

I'm quite scared by the whole ordeal and dont really know what to expect when I go to court but I know this what is best for my family and it will be a massive relief to be able to say I'm debt free in December!!!

Mike_St_Helens

alidadas wrote:

Hello everyone!

I'm new to this site so thought I'd say hi!

On the 5th of December I will be going bankrupt! I completed for forms online at the beginning of the month, phoned the court and that was the earliest date they could fit me in!

I'm quite scared by the whole ordeal and dont really know what to expect when I go to court but I know this what is best for my family and it will be a massive relief to be able to say I'm debt free in December!!!

Good luck... Its not as bad as you fear.

Debt free and more important stress free here we come !

rog2

alidadas wrote:

Hello everyone!

I'm new to this site so thought I'd say hi!

On the 5th of December I will be going bankrupt! I completed for forms online at the beginning of the month, phoned the court and that was the earliest date they could fit me in!

I'm quite scared by the whole ordeal and dont really know what to expect when I go to court but I know this what is best for my family and it will be a massive relief to be able to say I'm debt free in December!!!

Yes, welcome alidadas, let us know if there is any way we can help you:beer:

alidadas

Oh and a quick question - I have one company who is phoning every day, often quite late at night which is waking my baby. My H answers the phone and tells them I'm not in - you'd think they get the hint by now!

Anyway, I thought I'd just tell them that I'm going bankrupt and it would hopefully stop the calls - they are aware its a possibility as when I spoke to them last month in a last ditch attempt to sort this out I told them if they weren't willing to accept what I had to offer the only option I had was to go bankrupt! BUT I'm worried that if I tell them I'm going bankrupt they'll send the balliffs round while they still can - can they do that??

Its only 21 days til my court date but I'm getting sick of having to ignore my house phone, and they always seem to phone when my boy is napping during the day! Grrrr!! (I cant unplug my phone as my FIL is currently ill in hospital and we could get a phonecall any time to say he's got worse)