IVA - Peace of mind? No such luck

scootw1

As for debt Free Direct, they have already been told to clean up their act and their ads by the Advertising standards Agency for misinformation. I know because I made the compaint.

NekoZombie

To be honest, this whole thread has been an attempt to convince tr@cker that IVAs aren't always the solution their cracked up to be - I've noticed, however, that despite reasoned arguments, we're no closer to convincing him otherwise.

To actually believe the statement: You will only have to repay what you can comfortably afford is almost risible. When I was looking at an IVA, my repayments were no-where near what I could actually afford to pay, instead dictated by how much the creditors were prepared to accept. There is a big difference between what the debt companies promise and the reality of the situation.

I was stupid enough to use the budget from the IVA company as my statement of affairs, resulting in an IPA of £156. The very fact that when I sat down and worked out the numbers properly, I ended up with no IPA and a deficit of -25 is proof enough that the repayments were not affordable.

What tr@cker is steadfastly ignoring is that when you are up to your neck in debt, it becomes very easy to make rash decisions, because *anything* looks better than your current situation. Six months down the line, and many people realise it wasn't the solution that they'd hoped for, and they're facing bankruptcy anyway.

rog2

NekoZombie wrote: »

What tr@cker is steadfastly ignoring is that when you are up to your neck in debt, it becomes very easy to make rash decisions, because *anything* looks better than your current situation. Six months down the line, and many people realise it wasn't the solution that they'd hoped for, and they're facing bankruptcy anyway.

Very true NZ - 'What you can comfortably afford to pay' today could change dramatically in a few months, or even overnight.
An I/E statement is a snapshot of a debtor's situation at the time of compilation. It is impossible to predict that things will only improve over a five year period.

NekoZombie

rog2 wrote: »

Very true NZ - 'What you can comfortably afford to pay' today could change dramatically in a few months, or even overnight.
An I/E statement is a snapshot of a debtor's situation at the time of compilation. It is impossible to predict that things will only improve over a five year period.

Yes, another good point Rog. For some reason most debt companies administering IVAs assume that things remain static over 5 years, or improve. Yes, your salary might go up, but so does the cost of living. Or god forbid, your cost of living goes up and your income goes down. :eek:

rog2

scootw1 wrote: »

As for debt Free Direct, they have already been told to clean up their act and their ads by the Advertising standards Agency for misinformation. I know because I made the compaint.

Well done scoot - I only wish more people would excercise their rights and register official complaints about ALL companies that attempt to make money out of the misfortunes of others.

jam3162

this thread was never an attempt to put people off IVAs. If it works for them so be it. I was wondering however if there has been any positive feedback from people who actually are in an IVA and are happy with it.

It suddenly dawned on me while reading all the replies that when i was at the beginning of my IVa i sent off my budget to Debt matters. When they received it i got a phone call telling me that they were going to amend the rent i paid out each month. They changed it from £750 pcm to £660. I asked why. They replied that it would make the IVA more agreeable to all my creditors. Stupid me agreed.

If anyone has got any address or website that i can complain about debtmatters to or where to get the form i would be grateful.

Thanks

rog2

jam3162 wrote: »

this thread was never an attempt to put people off IVAs. If it works for them so be it. I was wondering however if there has been any positive feedback from people who actually are in an IVA and are happy with it.

It suddenly dawned on me while reading all the replies that when i was at the beginning of my IVa i sent off my budget to Debt matters. When they received it i got a phone call telling me that they were going to amend the rent i paid out each month. They changed it from £750 pcm to £660. I asked why. They replied that it would make the IVA more agreeable to all my creditors. Stupid me agreed.

If anyone has got any address or website that i can complain about debtmatters to or where to get the form i would be grateful.

Thanks

At least the debate that this thread has started could have some positive results for you, jam. Iwould start by talking to your local Trading Standards Office - they will probably talk to the other regulatory bodies on your behalf, but certainly talk to the fsa (Financial Services Association) if Debt Matters are a member. The CAB may also reccomend that you talk to a solicitor.

Your post confirms EXACTLY what NZ and I have been saying.

These people should not be allowed to carry on in business.

Richard_S

Another point for anybody concerned about the stigma of bankruptcy compared to an IVA is that a bankrupt's details only stay on the Insolvency Service's web site for 15 months. Details of an IVA are on for the full five years; if any actually last that long.:eek:

staffssandra

Hi Jam,

If you have a local Citizen Advice Bureau go and see them about this they will be able to help you. Charitable organisation, all staff including volunteers are well trained. Everything they do is free impartial and confidential and they deal with this stuff all the time.

Sorry to hear about your bad experience with IVA, I wish debt management companies weren`t allowed to exist. Not when you have charitable organisations that provide the same service, but 100 times better and with no cost. If you can`t get to your CAB some do phone/email service but for complicated matters it might be easier face to face.

Hope you get is sorted

Posthinking

Richard_S wrote: »

Another point for anybody concerned about the stigma of bankruptcy compared to an IVA is that a bankrupt's details only stay on the Insolvency Service's web site for 15 months. Details of an IVA are on for the full five years; if any actually last that long.:eek:

If you're lucky enough to get an early discharge,as I was, It's only on there for 3 months after that discharge