Can I get IVA written off?

charliedw

I'm currently in an IVA with Grant Thornton. I've been paying about £200 for about a year.
Recently I received a flyer headed:
"If you are in an IVA or Debt Management You need to read this!
5 minutes may save you 5 years!"
It was printed and distributed by "Exxpress Marketing". (Yes, they did have 2 x's in Exxpress) (tel no. 08000 933 757).
Anyway, I rang them up and had a chat. I was told that IVA's were mainly set up to protect assets. Furthermore I was told that if I had my house valued and could show that it was equal to or lower than the value of the existing mortgage then there was the chance I could get the IVA wiped out. They would represent me in court and do it all for me. I believe their fee was £260 a month for 6 months, (which would save me a lot of money in the long run, but make me struggle for 6 months).
Can you advise if this is genuine or not. Or are there any reprocussions that I should be aware of (the guy did mention "bankrupcy" but brushed over it).
Any help or advice would be appreciated. Thanks

mjm3346

I imagine in their spare time they try to sell Buckingham Palace to tourists.

You would almost certainly still have the payments to make if you were bankrupt unless your circumstances have got much worse since the IVA started.

UpToMyNeckInIt

No, you cannot get your IVA 'written-off''.

Basically, it is a firm encouraging you to to bankrupt, and charging you for the privilege.

I've had a couple of letters like these, and I've filed them under 'recycling'. Suggest you do likewise.

If you feel BR may be a better route to go (only really an option if you have no assets), do your homework, and seek advice from CAB or one of the debt charities.

You can save the BR fee of £700-£800 (I think), by missing 3-4 IVA payments, thus failing it, and do the BR process yourself for free. ...or so I understand anyway.

Good luck.

National_Debtline

Hello there.

Although many IVAs are set up by people looking to try and protect an asset (usually their home) there are plenty of people who live in rented accomodation that are within quite legitimate IVAs. Grant Thornton are a major player when it comes to IVAs, as a firm they adhere to the 'IVA Protocol' which is designed to ensure transparency throughout the industry.

It could be true that bankruptcy is a cheaper and faster alternative to an IVA, what's important is that advice is sought from a recognised impartial debt advice agency so that you can be made aware of all the pros and cons of any debt-related options. There are significant implications to consider with bankruptcy although for many people it can be a very positive options for them. You should never pay anyone to help you fill in the form, you can get help for free via the CAB, Stepchange or ourselves. The fee currently stands at £700.

It's important to bear in mind that you are likely to have to pay your disposable income into the bankruptcy for three years, this is known as an income payment agreement. Given the fact that you're already one year into your IVA you may find that the potential savings from switching could be minimal.

As UpToMyNeckInIt has mentioned, should you wish to stop the IVA you can do so by stopping the payments, it would then fail in time. Prior to making any decisions do consider seeking further advice or spending some more time researching this forum.

Best wishes,

David @ NDL.

charliedw

OK, thanks for the advice guys. It sounded good, but I had a nagging doubt. They don't even seem to have a website which in itself is not much, but in this day and age is not a promising sign. They don't seem to want to make themselves too visable if you know what I mean.
I've had my house valued by some local estate agencies as I wanted to explore all options, and I do seem to be in negative equity (more so than I expected)! This was the main condition for them claiming to be able to clear the IVA. However, everybody I ask does not seem to think it's a good idea, so I'll likely leave it.
Thanks again!

National_Debtline

It is possible to become bankrupt and keep your home if you have a negative equity situation. It can be a complicated area depending on your precise circumstances.

The general rules about the home in bankruptcy can be found here:

http://www.bis.gov.uk/assets/insolvency/docs/publication-word/what-will-happen-to-my-home.doc

Remember that with the bankruptcy fee and the potential income payment agreement I'm not certain taking the bankruptcy route would actually save you a great deal - and you'll have the bankruptcy on your credit file for six years from the date of the order.

I've never heard of the company you mention but companies offering what seems to be, on the face of it, a similar service have gotten themselves in to quite serious trouble in the past. If you get time please Google 'The IVA Council' and you'll see what I mean. I really don't know enough about Exxpress Marketing to comment on them at all.

Best wishes,

David.

UpToMyNeckInIt

...just to add though that going BR can involve repaying what you can afford over the next 3 Years. Also, I understand that after that 3 Year period, your house may have improved in value, and may then be taken if it then has any equity.

At least with the IVA, you will be guaranteed to keep your home.

You need to ask yourself if going BR is worth resetting the 6-Year crap credit history clock and risking your home, for the sake of maybe knocking 1 year off your repayments.

Do your research and your sums is what I suggest.