IVA mis sold. Best route to go down..?

harveybobbles

Helping a friend who currently has their head in the sand.

Brief outline:

What would the best route be to proceed with an IP company who ill advised an IVA as the best way to clear debt when someone has no assets at all?


They were in their 20's, had close to £30,000 unsecurred debt on various CC's and loans etc, was living with parents and had a modest car (value under £2000)

IVA was paid for 4 years before it was completed.

The IP company in question did a comparison of the fees of BR vs IVA:

BR fees:

OR Costs £1650
Trustee Costs £1000
Trustee Remu £3450
Sec of State fee £1575
Petittion costs £1000

Obviously someone with NO assets wouldn't need a Trustee as there were no saleable assets, so the £1000 + £3450 wouldn't need paying. And neither would the SoS fee..

Reading thru the IVA paperwork the IP had listed the car as an asset (even though it was worth less than £2000)

This has all been misrepresented from the start as far as I can see..

dancingfairy

What paperwork was there to support why an IVA was recommended at the time?
What IPA would they have had under bankruptcy (and also the car may have been taken). Ok so an IPAa may have lasted 3 years but it might have been higher than an IVA overall?
Costs - not sure what bankruptcy costs would be certainly not anything like what they have made them out to be.
Um, what does your friend what to achieve? Presumably now the IVA has been paid off that's the end of it? Presumably they don't want it revoked or anything as that would leave them in a mess. They could and probably should complain to the IVA company in thefirst instance depending on what they want to achieve. After this they could ask who the regulators are and could then complain to them. df

Anondebtadvisor

If the IVA was successful and now complete - the debts are now cleared. - what are you hoping to acheive?

If there was an IPA in place there would be fees associated with the bankruptcy even though there were no assets

milliemonster

The car would have been listed as an asset in the iva as it WAS an asset as it was owned by your friend, regardless of its value.

It is likely that the company who represented your friend for the IVA gave them all the options that were open to your friend regarding debt solutions and your friend chose the iva route as opposed a to dmp or bankruptcy, an iva can sometimes be the best route for someone despite having no assets and indeed many people without assets still choose an iva as they want to repay as much of their debt as they can, this doesn't mean it was missold and I think you will have a hard time proving that an iva was missold, unless your friend was coerced into signing it.