IVA - Peace of mind? No such luck

scootw1

Tr@cker wrote: »

Absolute rubbish. For a start with a bankruptcy you cant have a normal bank account and secondly YOUR name is published in the local press for everybody you know to gawp at and point the finger at you, not so with an IVA.
My point is they're right for some people for those at the lower end of the debt scale probably not. If i had a debt of say 40k and 16 of it got wiped off i wouldn't give a monkeys if the IP made 5k on the deal.

You can't have a "normal" bank account in IVAs or bankruptcy so there is no difference there.

Secondly, I didn't have people "gawping and pointing the finger" as you say. Is this what you do when you know someone has gone bankrupt? I would hazard a guess that you work for an insolvency practitioners office and as such will obviously be in full support of IVAs.

And i think that somebody in that much debt wouldn't give a monkeys about the IVA compnay making some out of the deal IF it all goes through successfully but as has been pointed out 80% of IVAs fail, the creditors get nothing and the IP makes a mint when they should not have advised the IVA in the first place.

wherediditallgo

People naturally worry about their name being in the papers, but only one person made a point of commenting about mine & I gave her a sharp reminder about her own household not being as pure as the driven snow, so that was swiftly dealt with. Few people look at the teeny classified ads at the back of newspapers, & if you have more than one local paper in your area, even less people are going to have a chance to see your name there, since it only appears once & only in one paper (unless it appears incorrectly & it's decided that the issue is big enough for it to warrant a repeat appearance). Too many people try to frighten people with debts into taking any solution that's offered rather than go BR, because of the fear of public scorn. Likewise, bank accounts. Many if not most people in serious debt haven't used their credit facilities in years & are just trying to pay off old debt, so not having a 'normal' bank account isn't half the issue people make it out to be. No, you don't have a credit card or cheque book, but if you think hard about it, you don't have to have one of those & you don't really need the other, & there are ways around the situation anyway. It might be a bit inconvenient, but it's nothing like the drama those who prey on those in debt make it out to be.

In the eyes of some financial institutions, there is precious little difference between someone on an IVA & someone who's gone BR - they've both had debt problems serious enough to require the intervention of others to resolve, & which will result in the creditor not getting all the money back that they were owed. A building society recently gave two of the conditions for application as being that you could only apply for an account if you were "not currently bankrupt or subject to an Individual Voluntary Arrangement (IVA)". We know from our own enquiries that people aren't actually barred from applying, but you wouldn't have thought so from their website, & even if other institutions aren't as open about it, I bet some if not all of them look at account applications in a similar way. If the only thing forums like this one do for others is to take away the fear of the unknown, I for one hope they're around for a long time to come.

It should also be borne in mind that, while IVAs are the right solution for some people, there are many people who have insufficient information about them before they start. Whether that lack of information is down to them or the company running the IVA, the point is they don't realise that whatever solution they choose needs to be able to take into account future & sudden expenses. IVAs can be amended, but it can take months for creditors to respond, & in the meantime debtors still receive letters from creditors which should be being dealt with by the company running their IVA, so they're no better off than they were before the IVA started. Why have a dog & bark yourself? Furthermore, with 80% of IVAs failing, I think questions should be asked about the structure of the fee-charging process. The money that goes on fees could be going towards the debts, & if an IVA can fail so early on in the process it clearly hasn't been set up on the most appropriate financial basis in the first place, so why should the debtor pay the full fees as if it has?

There is a place for IVAs, DMPs, payment holidays etc, just as there is a place for BR. But the only solutions that should be offered are ones that work towards resolving the situation, not ones that either create a bigger mess/debt than the person started off with or leave them no further forward after months (sometimes years) of paying into it. At the moment, debt resolution is money for old rope for the less scrupulous companies & individuals.

NekoZombie

Tr@cker wrote: »

Its 'he' actually nekozombie and i never said IVA's are intentionally mis-sold. But YOU are good at misquoting people.

I know you didn't. My point was that you don't recognise that they are - you said on another thread that you don't believe IVA's a knowingly mis-sold as this would reflect badly on the companies involved. My point is that IVAs are often mis-sold, to the detriment of people desperately trying to get out of debt.

I have said before (and other have also said) that an IVA can be the correct solution for some, but with 80% failing you have to question the maths.

Doesn't 's/he' recognise you as either a 'he' or a 'she'?

Tr@cker

Posthinking, how many people do you know who look on an insolvency website ? You're deliberately misinterpreting what ive said. A close colleague of mine is 3 months into a bankruptcy his name was in the local paper and he had the humiliating experience of having the p*ss taken out him all over work. As for IVA's failing you're implying IP's dont know their own job! You can keep the bank account you already have who said anything about opening a new one ? And for the last time NO i dont work for anybody in the credit business i am saying anybody in serious debt should examine all options and not just take anybodys word as gospel, that includes some self-appointed experts.

Tr@cker

And by the way if an IVA fails depending on the IP firm it doesn't cost you ANYTHING.

Richard_S

Tr@cker wrote: »

And by the way if an IVA fails depending on the IP firm it doesn't cost you ANYTHING.

[EMAIL="Tr@cker"]Tr@cker[/EMAIL],

Apart from precious time and every penny you've paid into it; absolutely NOTHING at all.

scootw1

Tr@cker wrote: »

And by the way if an IVA fails depending on the IP firm it doesn't cost you ANYTHING.

Wrong, wrong, wrong. I got six months into mine, getting on for four grand paid in, lost it all.

backontheup

Tr@cker wrote: »

And by the way if an IVA fails depending on the IP firm it doesn't cost you ANYTHING.

That very statement now proves that you are not in possession of the full facts.

The IP companies make back their fee from your monthly payments before then even think about paying creditors etc. Considering that most IVA's are failing at a staggering rate, they are quid's in. "Money for jam" as my mother never used to say ;-)

rog2

I have just seen this thread, and, putting aside the personal arguments, I think it confirms what this, and DFW, forum has been saying for months.
There are many 'unproffessional vultures' who see an easy profit to be made out of other people's misfortunes.
The IVA is, in principle, an excellent alternative to bankruptcy, when properly administered. Unfortunately, and it probably correlates directly to the increasing amount of debt in the UK, the IVA system WILL always attract the more unscrupulous element, who are more interested in making an easy buck, rather than in the interests of their client - the debtor.
For this reason, we have always said that anyone contemplating an IVA should, in the first instance, take professional advice from one of the debt counselling charities, who will firstly advise as to wether an IVA is suitable, and secondly can reccomend professional Insolvency Practitioners.

As for the OP, I reccomend that you contact your local authority housing department, or the CAB who may be able to help with your housing problem.

jam3162

thanks to everyone for their advice.

Since my original message I have been to CAB. Their advice was for me to go bankrupt. This i will do once i have got the money together.

At the moment my daughters are putting me up and i hope to sort a place out soon.

I phoned my IVA company up yesterday to tell them what was happening. I informed them that i was going to inform the IP regulator about what has happened to me since i began my IVA. the fact that £4000 later and my peace of mind has been shattered to say the least. The fact through the company's inadequate running of my IVA i am ineffect homeless. The company asked me to hold. Eventually she came back and said if i was to continue paying my IVA they would get my CCJ overturned. I told her no as the damage has already been done and it doesnt actually help me in the short term to find me a home.

They also said that the terms of aggreement do not state that they will start bankruptcy prceedings, i have to do that myself.

Through talking to the company i also found out that i have a manager and an adminstrator dealing with my IVA. I asked does that mean there are 3 people dealing with my IVA. she replied yes. so why am i in this situation? couldnt answer. At no point did the girl mention my IP. For me its just a name on a piece of paper.

Would advice anyone contemplating an IVA to seek professional advice. I wish i had. For me it was at the time a light at the end of the tunnel. That light has been truely snuffed out.

On a positive note - its a lesson learnt.

jam3162