Sfc - iva

pedroferrao78

Hello,

Hope someone can help, I am currently being offered an IVA by SFC.

I am currently in debt for roughly around £13000 that includes some payday loan companies. I was contacted by SFC to which they informed me my best offer would be to go down IVA route.

I would need to pay £100 for first 2 months to get the draft set-up.

Any ideas if anyone has dealt with them and is it as simple as they say.

Thank you for any help in advance.

Anondebtadvisor

SFC? i have never heard of them but if they are charging upfront fees i would avoid rhem to be honest.

I would recommend that you take advice direct from insolvency practitioners as it sounds like SFC may pass your details onto an IP and charge you £200 for the privilage. Usually you pay the 1st month in advance and if the IVA is not approved it is returned to you.

Are you sure an IVA is right for you? with low debts have to considered the Debt Relief Order "DRO"?

To qualify you must have debts of less than £15,000, Assets of less than £300 and a disposable income of less than £50?

debtinfo

Never ever go with a company that cold calls you. Simple as that.

Anondebtadvisor

I tried to find them on the internet and no sign of them!

Not a good sign

pedroferrao78

That is what i thought.

I have looked at DRO and going to contact CCCS later for some advice.

I live with my gf will her income be taken into account?

debtfreenewbie

I would say a dro would be better. If you look on cccs website you can do a financial statement and it will advise you on the best course of action.

Do take your time deciding,choose the company carefully whatever route you take. There are iva firms that dont charge.
Good luck.

Depth_Charge

pedroferrao78 wrote: »

Hello,

Hope someone can help, I am currently being offered an IVA by SFC.

I am currently in debt for roughly around £13000 that includes some payday loan companies. I was contacted by SFC to which they informed me my best offer would be to go down IVA route.

I would need to pay £100 for first 2 months to get the draft set-up.

Any ideas if anyone has dealt with them and is it as simple as they say.

Thank you for any help in advance.

Hi

If you do eventually decide to go down the IVA route there are companies like CCCS (Stepchange) Payplan & others that dont charge any up front or 'introduction' fees.

Like others have said I would steer clear of any company that cold calls as they are probably only sales people anyway, not debt advisers.

Full independent impartial advice on all your options from a genuine free charity agency such as CCCS (Stepchange), CAB & National Debtline is the way to go.

UpToMyNeckInIt

By all means try Stepchange etc, but it is ignorant to suggest that they will give you 'impartial advice' when they are funded by the banks etc. I would also suggest contacting a number of private insolvency practioners (see iva.com). Many of them don't charge you a penny up-front, as they get paid by your creditors, and forms part of your monthly payment. I hasten to add that this also applies to the debt 'charity agencies' - they all charge fees!!!

That said, I'm not certain if with £13K of debt, an IVA may not be the best option, a DRO or DMP might also be worth considering.

Best of luck.

Depth_Charge

UpToMyNeckInIt wrote: »

By all means try Stepchange etc, but it is ignorant to suggest that they will give you 'impartial advice' when they are funded by the banks etc. I would also suggest contacting a number of private insolvency practioners (see iva.com). Many of them don't charge you a penny up-front, as they get paid by your creditors, and forms part of your monthly payment. I hasten to add that this also applies to the debt 'charity agencies' - they all charge fees!!!

That said, I'm not certain if with £13K of debt, an IVA may not be the best option, a DRO or DMP might also be worth considering.

Best of luck.

Hi

IVA fees are not paid by the creditors and it is very misleading to suggest that they are.

IVA fees are paid by the debtors subject to the IVA, they come out of their payments, just ask those whose IVAs fail, should not be hard as tens of thousands of IVAs do fail.

I see this on a regular basis, sometimes it runs into thousands of pounds, its a fact.

It also applies (the fees that is) to full and final settlement IVAs and where the full amount of debt is paid in the case of assets and windfalls etc.

I hope the companies and IPs on the site that you keep referring to (iva.com) would agree, I would be interested if they did not as maybe I have got it wrong and if so perhaps they could enlighten me and others of the same opinion, we might all learn something.

I challenge them to come on here and say it is not so!

UpToMyNeckInIt

Depth_Charge wrote: »

Hi

IVA fees are not paid by the creditors and it is very misleading to suggest that they are.

IVA fees are paid by the debtors subject to the IVA, they come out of their payments, just ask those whose IVAs fail, should not be hard as tens of thousands of IVAs do fail.

I see this on a regular basis, sometimes it runs into thousands of pounds, its a fact.

It also applies (the fees that is) to full and final settlement IVAs and where the full amount of debt is paid in the case of assets and windfalls etc.

I hope the companies and IPs on the site that you keep referring to (iva.com) would agree, I would be interested if they did not as maybe I have got it wrong and if so perhaps they could enlighten me and others of the same opinion, we might all learn something.

I challenge them to come on here and say it is not so!

Depth Charge - I assume from your anti-IVA bias in this and other posts, that you are not actually in an IVA?

Allow me to elaborate: IVA fees are paid as part of the Arrangement and are included in the monthly contributions made to the IVA. These fees do not generally affect the total amount payable, but instead reduce the final dividend that each creditor hopes to receive from the IVA.

Thus by default, the creditor 'pays' for the fees by way of receiving less in dividend payment. Indeed, it is debated and voted upon at the creditor's meeting when agreeing the IVA. (Not to mention that it is also outlined in my IVA agreement).

As a result, an Insolvency Practitioner must agree his fees with voting creditors before an IVA is accepted.

That said, for the duration of an IVA, the debtor remains liable for the the original outstanding credit + these fees (and sometimes, statutory interest - particularly with older non-protocol compliant IVA's). If a debtor receives a windfall etc. or 'fails' the IVA (usually means your creditors will petition for bankruptcy), it all goes into the pot.

After your 5-6 year plan however, any remaining debt is written off. Indeed, for the most part, if the IVA is arranged by a reputeable IP, correctly managed, AND the debtor does not receive an unforseen windfall, this is usually what happens.

Sure, you hear on the various forums of people coming into some money unforseeably, or getting a big job promotion/pay rise, grumbling that they ended up paying back more than they thought that they might. Well, that's the risk of any IVA - I know it, and accept it, because I had little choice in the matter. It was also made clear to me at the outset.

Depth_Charge

UpToMyNeckInIt wrote: »

Depth Charge - I assume from your anti-IVA bias in this and other posts, that you are not actually in an IVA?

Allow me to elaborate: IVA fees are paid as part of the Arrangement and are included in the monthly contributions made to the IVA. These fees do not generally affect the total amount payable, but instead reduce the final dividend that each creditor hopes to receive from the IVA.

Thus by default, the creditor 'pays' for the fees by way of receiving less in dividend payment. Indeed, it is debated and voted upon at the creditor's meeting when agreeing the IVA. (Not to mention that it is also outlined in my IVA agreement).

As a result, an Insolvency Practitioner must agree his fees with voting creditors before an IVA is accepted.

That said, for the duration of an IVA, the debtor remains liable for the the original outstanding credit + these fees (and sometimes, statutory interest - particularly with older non-protocol compliant IVA's). If a debtor receives a windfall etc. or 'fails' the IVA (usually means your creditors will petition for bankruptcy), it all goes into the pot.

After your 5-6 year plan however, any remaining debt is written off. Indeed, for the most part, if the IVA is arranged by a reputeable IP, correctly managed, AND the debtor does not receive an unforseen windfall, this is usually what happens.

Sure, you hear on the various forums of people coming into some money unforseeably, or getting a big job promotion/pay rise, grumbling that they ended up paying back more than they thought that they might. Well, that's the risk of any IVA - I know it, and accept it, because I had little choice in the matter. It was also made clear to me at the outset.

Hi

I am not anti IVA, but do spend a lot of my time advising and helping people with IVA problems and failed IVAs (usually this means helping them petition for bankruptcy as I have done only this week and will be doing next week along with sitting with them explaining that a substantial amount of what they have paid in has gone on fees and not towards paying off their actual debt an in some case nothing has been paid to creditors)

I know how IVAs work I have been involved with them for approx 15 years and it does not matter how it is dressed up, I can tell you that the bottom line is that the creditors do not pay the debtors IVA fees and I believe that IVA companies are not supposed to imply that they do.

I refer to my last post again and the invitatiion still stands.