Help IVA/DMP?

System

UpToMyNeckInIt wrote: »

Glad to hear that you have thought through all your expenses (good of DC to highlight this though, as so many customers miss stuff off, and then struggle with their IVA from day one).

I too have heard of only ONE IVA firm attempting to make some customers take a secured loan in lieu of a remortgage - this has been extensively debated on another IVA forum. This gist was that some pre-protocol compliant IVAs required equity release, by forced sale if necessary, without the 85% LTV clause, so it should not be an issue now).

I also know of one customer who successfully disputed the secured loan offer with this company, and was granted a 12-Month extension to the IVA instead - in line with protocol-compliant IVA terms.

An argument in favour of the secured loan however was that, if you were granted a remortgage, the entire amount would be at a sub-prime rate, so in some cases - ie: where a customer HAS been offered a sub-prime remortgage, a sub-prime secured loan would work out cheaper (as only that element would be at a sub-prime rate).

Regardless, the monthly repayment is limited to half your IVA repayment, with any remaining IVA payments reduced accordingly (thus making it affordable).

However, this is only likely to be of concern if you have significant equity come Month 54, and let's face it, most solvent people cannot get a 85% mortgage at the moment, so you stand no chance if you are insolvent. BUT who knows what the economy will be like in 4 Years.

Clarify these points with your IP if in doubt though.

I have a cynical view of the so-called 'independent' charities (Stepchange, National Debtline etc…) - they are all sponsored/funded by the banks/credit companies, and I can't help feeling that was who’s interests they were looking out for when they advised me. They tried pushing me towards a debt management plan (would have taken 10 years to pay off my debt + loads of interest).

Do a bit of research. In the rare instances that 'Stepchange' recommend IVA's, they outsource most of them to 'Grant Thornton' (a widely complained-about firm - mostly surrounding delays in the completion process). Sadly, even the CAB cannot claim impartiality. They too have a close working arrangement with GT (just google 'CAB Grant Thornton' and you will see that they are virtually in each others pocket, as far as IVA referrals are concerned).

I accept the point that IVA AND DMP companies (including the charities, who accept 'donations' of around 11% from the creditors) charge fees, but this makes not a jot of difference to your IVA payment. It becomes relevant in F&F offer situations though I guess.

Finally, if you have decided upon the IVA route, might be worth checking iva.com for some customer reviews of the various companies out there (ClearDebt seem well regarded though).

Hi,

Just to clarify most of our IVAs are done in house by StepChange Voluntary Arrangements. Only people who are self-employed or live in Northern Ireland are referred to Grant Thornton for IVAs.

I hope this helps.

Mat

FiatFan_2

Depth_Charge wrote: »

5 & 6 years is a long time and a lot of things can happen and they do, I deal with failed IVAs almost every week now (including two cases just yesterday) and could write a book (maybe I could call it IVA horror stories)

Of the failed or failing iva's you've dealt/dealing with, are they all because the I/E was unrealistic at the time of entering the iva or following reviews or have the customers reverted to old ways and began over spending again?

I have to admit we have had moments where we've reverted to our old ways, but soon realise and snap back to reality of fixed budgets and watching what we're doing.

yat360 wrote: »

We handed the keys to our home back to the mortgage provider as we went into our IVA. God it was hard decision...but sadly we had huge secured debt against it. You know, you soon learn that a home is made with a family and not necessarily a house that has a mortgage attached to it.

We originally chose an iva due to work restrictions and retaining our home. But we soon changed our minds once the mortgage company wanted to increase our capital & interest payments by 300pcm pre-iva. We found an ideal rented property, handed the keys and been much happier for the change. Your right yat360, the home is made with family not the house. Although in hindsight, we stuck with the expenditure of our owned home and our rental is significantly more expensive to run, but we decided to preserve with the existing budget till review time.

Depth_Charge

FiatFan wrote: »

Of the failed or failing iva's you've dealt/dealing with, are they all because the I/E was unrealistic at the time of entering the iva or following reviews or have the customers reverted to old ways and began over spending again?

I have to admit we have had moments where we've reverted to our old ways, but soon realise and snap back to reality of fixed budgets and watching what we're doing.



We originally chose an iva due to work restrictions and retaining our home. But we soon changed our minds once the mortgage company wanted to increase our capital & interest payments by 300pcm pre-iva. We found an ideal rented property, handed the keys and been much happier for the change. Your right yat360, the home is made with family not the house. Although in hindsight, we stuck with the expenditure of our owned home and our rental is significantly more expensive to run, but we decided to preserve with the existing budget till review time.

Hi

No, not all, far from it, there are numerous other reasons and issues (examples below)

Diabolical advice

Reduction in income / lob loss

Relationship breakdowns

Illness

Debts not included in the IVA or incurred after

Rising cost of living (big current issue and can only get worse before it gets better)

A combination of the above in some cases.

5/6 years is a long time and a lot can happen and it does.

These are difficult times with help and support for people struggling with IVA payments vital and there are IPs & companies that stand above others in this respect (my opinion of course)

Again, for the record, IVAs can be the appropriate, right and sensible solution and people have the choice at the end of the day.

PS - There are a number of us who go back a long way on the subject of IVAs and have debated (sometimes in a heated fashion) over many years at conferences, meetings, by telephone and on forums like this one etc and know each other well off stage if you like. It looks like nothing changes on that front. Sorry guys had to get that one in as I know you will be looking in:)

Best wishes with your IVA by the way.

My take as always