IVA's are Being Mis-sold and Misrepresented

sandralovescats

Those tv ads for an IVA are driving me mad!


An IVA is really no different to bankruptcy. Your details are still logged with the official insolvency site for the full five years you are in the IVA. You are subject to the same credit restrictions as in bankruptcy.
You pay a substantial fee for the IVA, some £8000. No, the ads don't tell you that, and neither does the paperwork when it arrives from your saviour debt management company. You are subject to the repayments for a full 60 months or five years.

These tv ads should be stopped, or altered so as to paint the true picture of the IVA.

lou_lou_skinty_poos

totally agree them iva adverts are so annoying!!!!! my understanding is that an iva is good for people who cant do bankrupcy because they mite loose their jobs etc. but surely bankrupcy is the best course of action as opposed to an iva where your tied to it for 5 years???

rog2

Hi Sandra,

I think most of us would agree about TV advertising for any of the perceived debt solutions, without making absolutely clear that it is a service which has a 'cost' to the consumer.
That said, IVAs can be a very positive alternative to Bankruptcy for many people, especially those on a reasonable income. Generally, when considering an IVA, I would advise people to talk first to CCCS or PAYPLAN, who can advise reputable Insolvency Practitioners.
Since all IVA's are 'fee-paying' it will, undoubtedly, attract an element of companies who are more attracted by the fees they can earn, than the help they could offer, and this type of company should be discouraged.
However, there are many, on this forum who have chosen an IVA as a solution to their debt problem, and are generally quite happy with the level of service they get.
Most would never reccomend an IVA company that charges fees 'up-front'.
Funnily enough, though, the IVA does not stop there - in the ten days since I was declared bankrupt, I have been targetted by over 20 companies trying to entice me into an IVA which will, their words, 'annul my bankruptcy' and 'turn the clock back'. I don't want to turn the clock back:rolleyes:

sandralovescats

In my case I did go down the IVA route. Along the road I was thinking that it was just as bad as bankruptcy, I might aswell go bankrupt. Then I was told that there was no way I could do an IVA, simply because I only had £45 per month disposable income and they wanted £345 for the IVA.

I don't regret making the decision to go bankrupt, I think it is the best route for me.

scootw1

Could I ask what sort of figures were proposed for your IVA and what sort of income you are on? If you don't mind, if you do tell me to MMOB

lowlowlola

thanks for starting this i had a disconcerting conversation with CCCS today - i advised them that i would have to lower my dmp payment for a month or so as my lodger was moving out and the woman at the end of the phone queried why i hadn't gone on an IVA - 50% of my income currently goes into my dmp and it is estimated that i should be finished in 47 months (just under 4 years)and i will be able to up payments once my lodger is sorted out - i know that an IVA is practically the same as bankruptcy and was very worried that she seemed to think that this was the best way forward

sandralovescats

scootw1 wrote:

Could I ask what sort of figures were proposed for your IVA and what sort of income you are on? If you don't mind, if you do tell me to MMOB

No problem!

At that time I was self-employed and still working, albeit on reduced hours.
They worked out my income was about £800 per month. When they did my outgoings it left me with £45 per month spare.

I think they calculated the debt at £39,000 and they wanted a payment of £345 per month for 60 months. They then advised me to go bankrupt since I have no house, no assets and nothing to lose.

Since then I am now not working due to health.

scootw1

I earn 1361 a month and pay £535 into an IVA. I guess I'm doing okay compared to som ebut not so favourable compared to others. I have thought about bankruptcy but I'm not sure if it will really help me that much as I would still pay a hefty amount for 3 years. I dont know if my IP will agree to lowering my IVA payments just so I can have a bit of money for "entertainment". i don't know what the judge would say when told some (a couple of hundred i would say) of my debt was from fruit machines over a period of time.Not sure if they would let me do it or if it going to be beneficial for me

Bossyboots

Actually, there is huge difference between bankruptcy and an IVA.

Two examples - you cannot be a school governor if you have ever been declared bankrupt. You can if you had an IVA.

You cannot practise as a solicitor while you are bankrupt and you will also not be allowed to handle client money should you be able to practise in the future. You are allowed to practise as a solicitor with an IVA although you are not allowed to be responsible for client money.

scootw1

I'm neither of those, I am a computer programmer

sandralovescats

Bossyboots wrote:

Actually, there is huge difference between bankruptcy and an IVA.

Two examples - you cannot be a school governor if you have ever been declared bankrupt. You can if you had an IVA.

You cannot practise as a solicitor while you are bankrupt and you will also not be allowed to handle client money should you be able to practise in the future. You are allowed to practise as a solicitor with an IVA although you are not allowed to be responsible for client money.

So what!

Also, you cannot be an accountant either !

Basically, an IVA and bankruptcy are the same thing, except for the amount of money you pay back