About to enter into an iva

Anondebtadvisor

Example: I've come across one IVA customer, aparently in Council Accommodation, whose only income is state benefits and on an IVA. How the heck does that happen? I ask myself. Understandably he is struggling with his £150p/m IVA payment to put it mildly.

It is practices such as this that gives the industry a bad reputation!! How does it happen? It is terrible to put people in a worse situation that they were before!

debtfreenewbie

I am two onths into my iva. Do your homework, although there is a protocal the companies all differ. One firm I spoke to wanted 350 and I said I couldnt guarantee that Id be able to pay that for 5 years.I had another who nearly put me in a worse mess as he hadnt contacted anyone.
I then found a nice chap, he came out to us and had the meeting date confirmed within 5 days. He has arranged a low payment that we can afford with a view to doind a f&f in a yearor so.
No more hassle, we even included utility arrears...
Good luck, just speak to a few until you are happy.

debtfreenewbie

PS Dont pay fees you dont need to....

Depth_Charge

Anondebtadvisor wrote: »

Example: I've come across one IVA customer, aparently in Council Accommodation, whose only income is state benefits and on an IVA. How the heck does that happen? I ask myself. Understandably he is struggling with his £150p/m IVA payment to put it mildly.

It is practices such as this that gives the industry a bad reputation!! How does it happen? It is terrible to put people in a worse situation that they were before!

Hi

Its nothing new, its been going on for years

CAB Report and other articles below from years ago

http://mymoney.nedcab.org.uk/moneyadvice/documents/archive/conference/IVA%20Report.pdf

http://www.guardian.co.uk/money/2006/oct/29/creditanddebt.observercashsection

http://www.moneywise.co.uk/blogs/rachel-lacey/another-mis-selling-scandal-the-making

Trouble is now, mainly due to the economic situation the whole thing is becoming as mess and could fall apart, just read the changing nature of some of the posts across the forums, looks like more have realised the magnitude of the situation, could be too late now though for some (hope not)

Also not all IVAs are protocol ones, and for the new ones there is the good old tick box usually found in the top right hand corner.

Some of the fee chargers job adverts can also make interesting reading

Simple economics, cuts & the alarming rise in the cost of living & travel are putting disposable incomes under the cosh like never before and it aint gonna get any better

The spin just aint gonna work, the fall is just too much

Time for responsible advice and support more than ever before, people need help to get through this and it can be done

You were warned

My take again

Depth_Charge

Hi

Here is probably the most updated information on the IVA protocol from the I/S site - got to be worth a read in my book for anyone considering an IVA or currently in one maybe

http://www.insolvencydirect.bis.gov.uk/insolvencyprofessionandlegislation/policychange/foum2007/plenarymeeting.htm

PS - just been having a google round some of the fee chargers job adverts concerning DMPs & IVAs, oh dear:)

I might put up a few links later, could be interesting to say the least

UpToMyNeckInIt

Hi DC,

I note those links are all pre-IVA Protocol (2010), as was the example customer's IVA. Wonder if it is still such an issue for portocol-compliant IVA customers?

That said, that very well regarded IP you were talking about, admits having customers on their books, who's only income is state benefits and with minimal assets. Not sure if an IVA is the best route for customers in that situation.

Like you say all of the private providers are very upfront about the IVA upsides, many clearly over-sell them, which is wrong. None are very good telling you about the downsides (you will find in usually buried in the small print).

Makes it all the more important for anyone contemplating an IVA to research the subject as best they can.

Depth_Charge

UpToMyNeckInIt wrote: »

Hi DC,

I note those links are all pre-IVA Protocol (2010), as was the example customer's IVA. Wonder if it is still such an issue for portocol-compliant IVA customers?

That said, that very well regarded IP you were talking about, admits having customers on their books, who's only income is state benefits and with minimal assets. Not sure if an IVA is the best route for customers in that situation.

Like you say all of the private providers are very upfront about the IVA upsides, many clearly over-sell them, which is wrong. None are very good telling you about the downsides (you will find in usually buried in the small print).

Makes it all the more important for anyone contemplating an IVA to research the subject as best they can.

Hi

The protocol is a voluntary code and not all IVAs are protocol ones

I am not sure which IP you are talking about and I wont get drawn into names. I cannot speak for individual IVA providers actual cases either and nor will I try.

I will say this on the subject of benefits - no circumstances are the same and indeed the issue of benefits can be a llittle contraversial on occasions especially where Attendance Allowance & Disability Living Allowance is concerned. However at times where the threat of loss of employment, property, priority debts, bailiffs and health are concerned then at times only by using some or part of a persons benefit to make an agreeable payment arrangment can be the only way of preventing these and stopping further action and costs

It is not always the perfect situation but by not making such an arrangement as the above could mean far worse problems for the individuals and families concerned such as homelessmess and serious detrimental effects on health issues through the stress and trauma of it all.

Debt advice takes all forms, emergencies do occur, priority debts have to be dealt with, families homes and health can be at risk and the trick is what is best long term for those suffering in debt not how much money you can make out of them.

Have you had a look through some of those fee charger job adverts? they are interesting, trust me, some of them are also members of DEMSA

Thats my take again

Anondebtadvisor

Some clients i speak to who are mainly or soley in receipt of state benefits simply do not want to go bankrupt or a DRO - even though you offer them advice they still want to do an IVA.

I had one only yesterday, a religious lady who absolutley did not want BR so decided on an IVA - we are not in a position to tell people what they should do only give advice for them to make an informed decision.

Depth_Charge

Anondebtadvisor wrote: »

Some clients i speak to who are mainly or soley in receipt of state benefits simply do not want to go bankrupt or a DRO - even though you offer them advice they still want to do an IVA.

I had one only yesterday, a religious lady who absolutley did not want BR so decided on an IVA - we are not in a position to tell people what they should do only give advice for them to make an informed decision.

Hi

Some clients on benefits I have seen and dealt with clearly have not had the options fully explained and ended up going down the IVA route when other solutions were more appropriate.

Often the above have ended up going bankrupt and I cant remember one that resulted in an IPA.

Not all circumstances are the same though it has to be said and people should not be forced like you say and I have covered benefits in another post, but there is a protocol nonetheless.

There is the other point that benefits such as AA & DLA are there for care & mobility purposes, not really for paying debts and fees and there are stringent tests before these are awarded along with the reviews - ask any welfare rights worker

Anondebtadvisor

I agree and if there is DLA etc it should always off set it in expenditure as other needs relating to the disability. But i know this doesn't always happen and it should!

Not all IPs should be tarred with the same brush!