IVA - moneyplus father in laws debt and death - please help!!!!!

heather_helo

Help!!

father in law rang today and advised me he was entering in to an IVA with moneyplus.com - he has seen a local rep and was advised to take out an IVA ; i have some issues - please could someone advise me about a few things.

So you know: father in law is 75 - health is ok - but he in convinced he is very ill - im not so sure - debt total on c.cards total cerca 10k. has 2 pensions - army and state. claims no other benefits - no other income - rents a property, owns a car.

has been advised that his repayments would be 100 per month not 260 that they are now,

this is my query:
1) he has been told that if he died the iva would end - and would have no claim on his estate? true or false? he has an insurance policy which pays out on death - hes been told that iva creditors couldnt have this- true or false?

2) is the debt sufficient for an iva?
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4) has anyone dealt with this company? are they reputable/ anyone had problems with them?

i live 300 miles away from father in law so i cant read everything or meet the practitioner before he applies - please help!!!!!!!

thank you

cheesedoffwithdebt

HI-I am not absolutely sure on all of those points but my first reaction was why they haven't explored a debt relief order or even a debt management plan? Because of his age, the sustainability of repayments over a five year period is more risky surely.

on the other points some of the things he has been told seem a little dodgy- there are others on here who know chapter and verse but this is my take;

1) he has been told that if he died the iva would end - and would have no claim on his estate? true or false? he has an insurance policy which pays out on death - hes been told that iva creditors couldnt have this- true or false?- if there are debts remaining at death there might be a bankrupt estate- its not as simple as the IVA ending.

2) is the debt sufficient for an iva?-not sure but it is within the limts for a DRO
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4) has anyone dealt with this company? are they reputable/ anyone had problems with them?-no but they don't sound that credible from what you've said!

UpToMyNeckInIt

Hi Heather,

I'm in an IVA, but no expert, but some advice:

First, make sure all this advice is confirmed in writing.

A £10K debt is low for an IVA, but not unheard of - it's all relative to owned assets and disposable income.

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Never heard of the IVa company you are using. Check out some reviews on iva.com, and get a few other opinions from some other firms, and seek advice from the creditor-funded debt 'charities': National Debtline and Stepchange.

Good luck.

Anondebtadvisor

I agree, i would not put someone in these circumstances in an IVA, a Debt Relief Order would be a better option for him. I hope he tells them to get lost

Good luck :-)

Max_Maxwell

Moneyplus is a fee-paying company. Your F-i-L needs to talk with other companies particularly those that don't charge fees upfront; CAB will be able to advise him.

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Has he tried negotiating with his creditors directly?

milliemonster

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If he dies before the iva completed, the iva would still be able to claim from his estate and this amount would be anything up to the total amount of debt he has plus fees, not just what was agreed to be paid back at the start, the insurance policy would also have to settle the debt, anything left over would then go to his beneficiaries.

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I agree a DRO would be better and he would be free of debt within a year.

manzanilla

He has a car - a DRO will only be possible if the car is worth less than £1000

Depth_Charge

Max_Maxwell wrote: »

Moneyplus is a fee-paying company. Your F-i-L needs to talk with other companies particularly those that don't charge fees upfront; CAB will be able to advise him.

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Has he tried negotiating with his creditors directly?

Hi Max

I ceased to be surprised & stunned by some IVA companies many years ago.

Profit and debt advice

Oh, did I forget to mention commission & sales

Then there are the much debated PPI issues and the subject of secured loans that seems to be 'creeping' in.

The IVA industry does at times seem like a ship with no rudder.

The more reputable companies are perhaps the only ones that will survive in the long run the way things are going.

Having said all the above an IVA can be the right and sensible solution depending on circumstances.

Just my opinions and take as always