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IVAs - confused

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GoodAfternoon, I would really appreciate some help please. My partner and I have debts in the region of £20,000. We have been in touch with the CCCS over the past year or so on and off and in April we were advised that my partner should go for a DRO and I should go for bankruptcy to end our debts.

A friend advised me to call Release Money (part of Debt Release Direct) as we are having trouble raising the money for the bankruptcy fees and also with the paperwork which is pretty extensive.

I spoke to this company last night and they have advised an IVA instead. As we are low earners we have been told that we would make a first payment of £150 to cover their costs, then a courier would come and collect all the necessary paperwork which I need to prepare (bank statements etc), then once the IVA goes through we would pay £150 per month for 5 years and then our debts and credit ratings would be clear.

Does this sound okay? I really do not know if the company are trying to pull the wool over my eyes and will charge more, or whether the IVA may not be accepted or whether we should even be going for an IVA.

Any advice would be much appreciated.

Thank you in advance.

Comments

  • memberme
    memberme Posts: 213 Forumite
    Debt-free and Proud!
    The repayment percentage seems fine and an IVA may be the best option.
    I would try a couple of other company's thought to get a general concensus. I'm a little concerened with a company couriering as though they are desperate to tie you up before you re-think. There are free advice agencies out there. I personally have mine with Cleardebt who have been excelltnt. They all make money one way or another ....Cleardebt charge nothing until the IVA actually starts so all discussion and advice is without obligation. There main man David Mond recently won the best IP award and has frequently been on tv discussing IVA's.

    Good look
  • WE have just had our iva agreed at 140 and we owe a lot of money.I had been advised by one firm that we would need 350. Just do your homework and call a few companies, why are you paying them first?
    I went with one who did nothing for 3 weeks and nearly out us in more trouble. I have now gone with afree one and it was sorted really quickly.They even added gas and electric arrears. Hope this helps.
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Hi Cham Cham, just wondering if you are having trouble raising the £700 bankruptcy fee, how are you going to pay £150pm for 5 years
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • GD2_2
    GD2_2 Posts: 53 Forumite
    edited 2 November 2012 at 2:02PM
    If you need a DRO and partner needs BR, then it is possible that partner has over £15k and you have the remainder. You wouldn't get an IVA accepted for that level of debt, and £150 per month is not enough per month to cover an interlocking IVA. Alternatively, partner may have a car worth £1k plus of course or assets of over £300.

    Whilst partner may want to consider IVA, avoid always firms that want money up front. The reputable ones will not ask for any payment prior to acceptance. No risk if rejected that way. That said, if you save the £150 for 6 months, and put up with creditor nonsense in the meantime, then you have enough for your DRO and partner has enough for the BR. Certainly a cheaper route methinks.
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