We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Ivas

Options
megastar
megastar Posts: 13 Forumite
in Debt-free wannabe
Ihave read alot recently about IVAs and ahev got the idea that they can affect how you reclaim bank charges, I dont actually have an IVA but am a debt free wannabe, can anyone tell me do IVAs help? How do they work, and what do they affect and how?

Comments

  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    Basically, an IVA is where you offer, through an Insolvency Practitioner, a monthly payment over 5 years, to all of your creditors, in return for which they will accept a reduced settlement figure. In order for an IVA to work, the majority of your creditors (75%) must accept the reduced offer.
    The IVA is managed by an Insolvency Practitioner, who takes a fee (these 'fees' can vary greatly, as can the way in which they are collected).
    There are, currently, many 'companies' who offer an IVA as a 'solution to your debts' and, properly managed that is exactly what an IVA can be.
    An IVA is the alternative to bankruptcy, but beware - if you fail to keep up your payments, bankruptcy is usually the consequence.
    If you are considering an IVA, talk first to one of the FREE Debt Counselling Agencies, such as CCCS or PAYPLAN - whilst they do not, themselves, administer IVAs, they can reccomend trustworthy Insolvency Practitioners.
    Beware of the offers to 'eliminate' up to 90% of your debt.
    I see no reason why being on an IVA should prevent you from reclaiming unfair bank charges.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
  • oscar52
    oscar52 Posts: 2,272 Forumite
    just to clarify, and i am sure i am correct in saying this, isnt the 75% measured by value of debt - ie £15K out of £20K
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    oscar52 wrote: »
    just to clarify, and i am sure i am correct in saying this, isnt the 75% measured by value of debt - ie £15K out of £20K

    I'm not too sure on that one, Oscar, but this could easily be clarified by CCCS, or PAYPLAN. I thought it was by number of creditors, but I am no expert.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
  • blownalot
    blownalot Posts: 124 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    oscar52 wrote: »
    just to clarify, and i am sure i am correct in saying this, isnt the 75% measured by value of debt - ie £15K out of £20K

    You are correct it's 75% but it's 75% of the value of creditors who actually vote, not of the total owed.

    So if you owed £200k and only had votes for £100k of your debt you would need £75k to vote in favour of it for it to be approved.
  • oscar52
    oscar52 Posts: 2,272 Forumite
    Never thought of the vote - but i thought that any that didnt turn up to the meeting or didnt cast a vote were deemed to have accepted by default.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • blownalot
    blownalot Posts: 124 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Unfortunately not. A lot of creditors who may feel its not worth their while voting could be affecting your IVA without knowing it. My IVA was approved by 75.3% of those voting this week but only 65% of creditors actually voted.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture