IVA's are Being Mis-sold and Misrepresented

Broken_hearted

I think the whole thing is scary. Too many people get pulled in to these because they don't know where they can get real help.

rog2

Broken_hearted wrote:

I think the whole thing is scary. Too many people get pulled in to these because they don't know where they can get real help.

That's exactly the point BH. Because these 'companies' can take so much in charges, they can afford the glitzy adverts. The genuine advisers - CCCS, PAYPLAN, CAB etc. are charities and do not earn enough to advertise.

sandralovescats

The fee that I was quoted for the IVA was £600. The fee for the setting up and management of the IVA was quoted at £8000.

There is no wonder that these companies are setting up, they must be making a small fortune with the IVA's alone. DMP will not bring them anywhere near that amount of money.

It isn't correctly regulated, it seems. Like a lot of things that go on.

So many people are so desperate. The ads get to you with this "write off xxx% of your debt" slogan. Sounds good, too good to be true, and it is.

IVA's are so popular - I had a look at the website and there are more IVA's than bankruptcies - in my area anyway.

fatboy88

Hi, i am just about to start an IVA, well if they accept it. There seems to be a big difference even between CCCS and Payplan.
I have about £227 left each month which Payplan says its fine for IVA but CCCS want at least £240. I've worked out i'm paying back 39p in the pound for the IVA but this drops to 27p after Payplan have taken their fees each month.
I thought about bankruptcy but i'm not sure how it will affect me after the 6 years. I dont have any assets so i could have done both really

sandralovescats

fatboy88 wrote:

Hi, i am just about to start an IVA, well if they accept it. There seems to be a big difference even between CCCS and Payplan.
I have about £227 left each month which Payplan says its fine for IVA but CCCS want at least £240. I've worked out i'm paying back 39p in the pound for the IVA but this drops to 27p after Payplan have taken their fees each month.
I thought about bankruptcy but i'm not sure how it will affect me after the 6 years. I dont have any assets so i could have done both really

Both IVA and bankruptcy will affect you for the 6 years, since both stay on your credit reference file for 6 years. After that it is not a problem

On £220 disposable income the IPA repayments on a bankruptcy would be around £110 per month.
If you have nothing to lose then it might be worth investigating bankruptcy. My thoughts on this are that in an IVA they want every spare penny you have got, in bankruptcy they don't.

You would have problems getting a mortgage in those six years, if that matters to you. You can have credit after discharge and up to the 6 year period, but if it is for over £500 you have to disclose it to the lender and you may pay higher interest charges.

I hope this helps!

scootw1

It seems that these IVAs do vary a hell of a lot as I am paying back 61p in the pound. I think I may have underestimated on my figures.

With regards bankruptcy, how long do your accounts get frozen for? I ask because my pay goes straight in the bank and I have utilties, phone etc coming out as DD.

sandralovescats

Not sure about this one scoot. Did you set up a basic bank account when you started your IVA? The OR normally does not freeze a basic bank account.

If yours is not a bba then it would be a good idea to open one and use it for your pay, etc.

It seems that you got stung on your IVA calculation

scootw1

Yes it is a basic bank account with Nationwide. Yes, agree with you about the calculations but at the time I thought this was the normal sort of figure.

sandralovescats

scootw1 wrote:

Yes it is a basic bank account with Nationwide. Yes, agree with you about the calculations but at the time I thought this was the normal sort of figure.

How many months into your IVA are you?

Are you contemplating bankruptcy?

scootw1

I started IVA in April. I am thinking of going to see the CAB to see what they think of my proposals and if it is worth me going bankrupt.