Pros and Cons of going for an IVA

xnetco

so basically five years without a bank account?

moozie_2

rog2 wrote:

We would love to help him, but the advice you have been given is good and should help him make a decision.

One small word of caution though. An IVA is administered by an Insolvency Practitioner, who is generally a private licensed practitioner, who earns his money by charging fees that come out of whatever your friend would be paying. By their very nature, this will attract a lot of people who are more interested in what they can charge, rather than in how they can best help you. Just advise your friend to be a bit wary as, once you have agreed an IVA, you are in a legally binding contract so you need the best advice.
Before making his final decision, suggest that he talks to PAYPLAN, or CCCS - they are charities, their advice is free and impartial and they can point your friend to reccomended Insolvency Practitioners.

Great post, thanks rog2! :T

gettingitsorted

xnetco wrote:

so basically five years without a bank account?

you can get basic bank accounts that come with a debit card but no checkbook or od facility

CLAPTON

the IVA stays on the credit record for 6 years although the IVA lasts only five. ...he will be able to get a basic bank acccount but will not get OD, cheque book or debit card ..can have a cash card

notmyrealusername

Just wanted to clarify that you can have a normal bank account in an IVA with a debit card and chequebook. You cannot have any type of credit facility whatsoever, so no overdraft.

The difficulty lies in getting a bank account, I switched banks before I defaulted and applied form my IVA and now have a 'normal' bank account minus the overdraft. My previous bank was my largest creditor so I had no option but to switch. If the OP's friend is already in financial difficulty and not meeting repayments then he/she will struggle to open an account with another bank but may be able to get a basic bank account which includes a 'solo' or 'electron' debit card.

james32_uk

notmyrealusername wrote:

Just wanted to clarify that you can have a normal bank account in an IVA with a debit card and chequebook. You cannot have any type of credit facility whatsoever, so no overdraft.

The difficulty lies in getting a bank account, I switched banks before I defaulted and applied form my IVA and now have a 'normal' bank account minus the overdraft. My previous bank was my largest creditor so I had no option but to switch. If the OP's friend is already in financial difficulty and not meeting repayments then he/she will struggle to open an account with another bank but may be able to get a basic bank account which includes a 'solo' or 'electron' debit card.

I can confirm this is true as I did exactly the same thing and still have debit card and cheque book.

jowie

Hi there - I've been reading this post with great interest, since I have recently been contacted by Advanced Debt Solutions. After a long chat with them, going through all my outgoings and incomings, they suggested I go the IVA route. The thing I'm wondering, is what's in it for them? Should I ignore them and speak directly to CCCS or PayPlan?

I told the guy I spoke with that I'd like to speak to my bank too (I have a meeting with them next week) and then sit down and weigh up every single option. He seemed very reluctant for me to go into my bank, saying they'd just sell me another loan. I know they would, but I believe I'm in a position where they could possibly extend my existing loan and avoid having to take the IVA route.

I felt a little pushed into the IVA thing, and I want to be sure it's for me before I go ahead. Who do you think I should talk to for the most impartial advice?

Thanks!

:-Joe

james32_uk

I strongly recommend you ditch ADS and get in contact with CCCS or Payplan. They will give you independent advice free of charge and set out all your options without being driven by their own profit targets!

How much do you owe and not including unsecured debt repayments what is your approximate disposable income after all expenditure?

jowie

james23_uk wrote: »

I strongly recommend you ditch ADS and get in contact with CCCS or Payplan. They will give you independent advice free of charge and set out all your options without being driven by their own profit targets!

Do you have any dealings with ADS? I gave them a ring today and they laid it all out in black and white, he seemed extremely helpful - but that's just how it seemed to me. Although an IVA was one of his suggestions, we both decided on the "Structured Management Plan" option - it meant a lot of similar things to an IVA, however I can change the repayment amount based on changes in my situation whenever I need to. This is a good thing from my perspective, since I am paying off a private loan to my parents which will be finished in 4 months time.

I asked him about the charities - CCCS and PayPlan, and he naturally plugged a few bad things about them (charities that still manage to make a 30m profit apparently) but I did take it all with a pinch of salt. ADS do charge 15% which is figured in to the monthly payment. Of course it is a cut but even then it's a huge difference to what I am currently paying out.

How much do you owe and not including unsecured debt repayments what is your approximate disposable income after all expenditure?

Jointly, my partner and I owe approximately £31,000. We have no disposable income including debt repayments, but not including them it's about £750 (which is what we pay towards them each month).

I really don't know who I should be trusting and who I shouldn't so if there is any SPECIFIC reason I shouldn't go with ADS I would like to know as soon as possible. The wheels are already being set in motion...

Cheers

:-Joe

Dr_Hook

jowie wrote: »

ADS do charge 15% which is figured in to the monthly payment. Of course it is a cut but even then it's a huge difference to what I am currently paying out...

...if there is any SPECIFIC reason I shouldn't go with ADS I would like to know as soon as possible. The wheels are already being set in motion...

CCCS and/or Payplan will do exactly the same in terms of a debt management plan, but without taking a 15% cut. You'd be much better off going with them.