From IVA to bankruptcy....? HELP!!

NekoZombie

Tr@cker wrote: »

I take your point but i still cant see it they want business and anything done as unprofessional as that i'd say they wouldn't last very long as an IP.
Reputations count for a lot in business and before you ask me, no i dont work for debt free direct or any other credit business.

I think you make a fair point, and in an ideal world this is how things would be.

However it is a fact that IVAs have been consistently mis-sold to people who are insolvent and scared of bankruptcy. I myself nearly had one set up, and in no way was it the right thing for me to do - IVAs are really only an option for high earner with their own homes, or those involved in professions where they would loose their job if they became bankrupt. I'm sure any IP invloved would maintain that they had their clients best interest at heart by protecting them from bankruptcy in a way that was affordable. However, the reality is IVAs are rarely affordable because the SOAs are so far from reality that as soon as an unexpected expense comes along the debtor is immediately in financial trouble.

EDIT - why do you not believe IVAs could be mis-sold? How about endowment mortgages, or PPI, or payment protection plans, or life insurance or god knows what else? Mis-selling is common place!:rolleyes:

Tr@cker

The reason ive taken a bit more interest in this thread is because ive considered an IVA myself. Fees can be as high as 7 grand but in some cases it can be worth it depending on the level of debt reduction they can get you.
DMP'S that in some cases last for umpteen years dont appeal to me. Ive seen a few cases on here where the IP has done a very good job for the debtor so i dont just buy this claim because they're making money (unlike CCCS etc) they arn't any good. For some individuals they can be a good deal but as always its a case of shopping around. Some further input from the poster would be welcome.

NekoZombie

Tr@cker wrote: »

The reason ive taken a bit more interest in this thread is because ive considered an IVA myself. Fees can be as high as 7 grand but in some cases it can be worth it depending on the level of debt reduction they can get you.
DMP'S that in some cases last for umpteen years dont appeal to me. Ive seen a few cases on here where the IP has done a very good job for the debtor so i dont just buy this claim because they're making money (unlike CCCS etc) they arn't any good. For some individuals they can be a good deal but as always its a case of shopping around. Some further input from the poster would be welcome.

I'm not sure anyone has said that on this thread, just that the OP has been mis-sold an IVA. Indeed, I actually said that an IVA is an option in certain circumstances.

Regarding you point about debt reduction, IVAs now tend to be a minimum of 42p in the £, especially if your creditors are northern rock, hsbc, hbos, who are increasinly demanding higher repayment terms. It actually isn't a case of shopping around, as your creditors decide what repayment is acceptable to them. Any less than they want, and the creditors vote against the IVA. The only thing to save on is the fees, but in the end its actually the creditor who pays for those, as it comes out of their total funds.

sadpootle

Thanks for all your help and comments!

My problem with the IVA is that it is very rigid; my circumstances have changed since it was set up (my job and living arrangements) and my IVA doesn't allow for that. What I pay each month is the lowest amount they would allow me. They have also spread it over 6 years instead of the usual 5.

I chose an IVA because at the time I didn't think I had much choice. DFD made bankruptcy sound like the worst possible thing I could do. (They also took months sorting it out and lost some important paperwork I posted to them!)

If I stop paying the IVA my monthly installments they will make me bankrupt themselves, so should I declare myself BR asap if I decide to take that route?

scootw1

sadpootle wrote: »

Thanks for all your help and comments!

My problem with the IVA is that it is very rigid; my circumstances have changed since it was set up (my job and living arrangements) and my IVA doesn't allow for that. What I pay each month is the lowest amount they would allow me. They have also spread it over 6 years instead of the usual 5.

I chose an IVA because at the time I didn't think I had much choice. DFD made bankruptcy sound like the worst possible thing I could do. (They also took months sorting it out and lost some important paperwork I posted to them!)

If I stop paying the IVA my monthly installments they will make me bankrupt themselves, so should I declare myself BR asap if I decide to take that route?

I assume you mean they will not make you bankrupt. That happened to me as well. My IP took their fees from the six months money I paid and there was none left to petition for bankruptcy so i had to do it myself.

sadpootle

Well I'm not sure.....if I stop paying for my IVA they will declare me bankrupt surely? Or is it best to just go ahead and declare it myself??

NekoZombie

sadpootle wrote: »

Well I'm not sure.....if I stop paying for my IVA they will declare me bankrupt surely? Or is it best to just go ahead and declare it myself??

As I said above:

Technically, when you default on your IVA they should automatically start proceedings for bankruptcy, but in practice this is rarely the case and you will probably need to petition yourself

Tr@cker

I didn't say you personally Did claim they arn't any good neko and as for shopping around. Capital One wont accept IVA submissions from IP firms who charge more than 4.5k in fees so it IS a case of shopping arond for the actual IP company.
Ive seen a report that says the average IVA is 46k. At that end of the scale if the IP got a reduction of say, 40% on the overall debt it'd be well worth the fees.
Ive no doubt in their rush for business they've mis-sold IVA's to desparate people but they arn't doing it wholesale or else from feedback alone they'd soon be out of business.
Some poeple-maybe a lot of people-just read an article that says 'oh so-and-so isn't any good' and reapeat this without checking it out for themselves.

Tr@cker

And of course, anybody can a bit creative with outgoings as for whats 'acceptable payments' a good IP will or should know in advance what will be acceptable to creditors and what would likely fail.

scootw1

Tr@cker wrote: »

I didn't say you personally Did claim they arn't any good neko and as for shopping around. Capital One wont accept IVA submissions from IP firms who charge more than 4.5k in fees so it IS a case of shopping arond for the actual IP company.
Ive seen a report that says the average IVA is 46k. At that end of the scale if the IP got a reduction of say, 40% on the overall debt it'd be well worth the fees.
Ive no doubt in their rush for business they've mis-sold IVA's to desparate people but they arn't doing it wholesale or else from feedback alone they'd soon be out of business.
Some poeple-maybe a lot of people-just read an article that says 'oh so-and-so isn't any good' and reapeat this without checking it out for themselves.

More of them seem to be mis-selling these days from what i've read. It isn't just the reduction in your debt that's the issue. it's whether you get an adequate amount to live on after you take it on board and whether you actually SHOULD be doing it that's the issue.