IVA Dilemma - please help

mrskingandthescarecrow

Last year I found myself out of work and pregnant so struggled to get a new job so me and my husband decided an IVA would be the best way forward. We looked at a few but went with Debt Matters as they charged the least fees for their service (next to nothing from what I can remember).

I also remember that one of the creditors requests were that Debt Matters did not take an annual managers fee. I agreed over the phone but have never received any paperwork after the meeting of creditors confirming the final figures agreed.

The IVA started in May 07 and we have paid every month.

In March 08, we received a letter saying that our IVA would be transferred to a company called Grant Thornton but as there were no changes everything would carry on as normal and we didn't need to do anything.

I haven't given it a second thought until I received the annual statement today. From May 07 to March 08 we have paid £4,884 into the IVA BUT Grant Thornton have deducted fees and vat to the tune of £4k leaving £800 left to be distributed to our Creditors!!!!!!

Now I know the amount we have been paying every month hasn't changed but my worry is that we have a mortgaged property and they are going to ask us to re-mortgage in year 4 of the IVA and the more they take off us in fees, the less we will have paid off the original debts and the more they could potentially ask us to take on our re-mortgage.

Another worry I have is that if these IVA companies can just transfer our IVA when they feel like it to another company who then do what the hell they like with the money we've paid in. who is to say that the next IVA company are committed to seeing it through to the end?

I'm just gutted that we have gone without so much this year to pay that £4884 into the IVA and what for? House repairs and car repairs have not been looked at, we are all wearing second hand clothes, I haven't had my hair even trimmed in over year and dentists and prescriptions are considered a luxury that we can't afford.

Probably a daft question but would I be able to terminate the IVA and get the money back that I've paid into the IVA? After all, Grant Thornton have done absolutely nothing on my case and I haven't signed anything to say that I agree with them taking over my IVA.

I really feel like ditching the IVA and paying my creditors directly. At least that way I know they will get some of the money we are budgeting towards our debts. Does anyone know if this is possible?

Any advice, support, help is greatly appreciated as I am at my wits end.

10past6

mrskingandthescarecrow wrote: »

Any advice, support, help is greatly appreciated as I am at my wits end.

Hi mrsking

I feel for you I really do, your post is one reason why fee paying debt companies are not worth the paper there written on.

Click here, it a list of debt charities, I suggest you call one of them on Monday for further advice, they all offer IVA's.

Take a look at my signature.

mrskingandthescarecrow

Does anyone know if I could terminate the IVA or do I just stop paying?

Miss_Marple_2

I don't know the answer, but I'm sure someone will be along who does.

I don't think stopping paying the IVA is a good idea, until you have something else in place.

Phone CCCS or National debtline on Monday and get some professional advice.

mrskingandthescarecrow

Hi, thanks for your reply.

I have spoke to payplan this morning to get some advice. Am going to phone Grant Thornton and get a copy of any second meeting of creditors proposals and go from there but if they have increased the fees since taking over I am considering paying my creditors directly so at least they will get more money.

At the end of the day I would be happy to pay 100% of the debts owed to my creditors but I would not be happy to pay 100%+£15k fees to Grant Thornton.

10past6

mrskingandthescarecrow wrote: »

Am going to phone Grant Thornton

If you enter "Grant Thornton" under search button on this forum, there are a few posts.

Depth_Charge

Hi MrsKing

I have read quite a number of posts / enquires on other sites relating to Debt Matters IVAs.

I understand that the Debt Matters IVA Portfolio was purchased by two companies in February 2008, I believe one was Grant Thornton and the other I understand was in fact Payplan!! (approx 4000 IVAs each I believe).

Might also be worth getting a third opinion from someone unconnected with the above.

Take care and wish you well.

D.C.

muzzymiller

Hi there, I am also in the same situation of having an IVA transferred from DebtMatters to Grant Thornton, the part I am worried about is that Grant Thornton were one of the companies who represented one of my Debtors when taking the IVA out. Does this compromise the integrity of the IVA and will they be acting on my behalf or that of the debtor they represented?

mrskingandthescarecrow

Hi, I'm not overly impressed with GT so far. I've been trying to ring all morning and can't even get through.

I would be wary about them representing one of your creditors prior to the iva but things are decided on a majority vote so would like to think that particular creditor couldn't sway anything now more than before the iva transferred to GT.

I am thinking about jibbing mine off after seeing the fees taking all the money I paid in last year. I was thinking yesterday that I have never once been given a figure of the fees that the IP intended to be deduct from my contributions and if I had been told that there were going to take as much as they have I wouldn't have bothered and just paid the creditors directly. We are starting to get back on our feet now financially so they will be wanting to up our payments but I'm starting to wonder how the fees will be taken, i.e. will it be a % to what's collected or is it a fixed amount? Only GT know!!!

mrskingandthescarecrow

Just got through to GT!

Been told that they intend to hold a meeting with my creditors to agree the transfer to GT. Told them that I don't agree with them taking it over until I have seen copies of the proposals and the nominees fees in writing (something I have never had after the first meeting of creditors with Debt Matters). The woman was a bit stroppy with me after I told her that! She said that I wouldn't get any of the money back that has been paid into the IVA if I stop paying into it and it fails and the amount originally owed to my creditors would still be due!, which gives me a whole new worry! - what if between now and when the iva is due to end (4 years) something happens, e.g. husband loses job, gets run over by a bus, leaves me or something happens and we can't keep up with the iva payments and it fails through no fault of our own? Does that mean we will lose all the money we have paid into the iva then?

Starting to sound like money for old rope. She said a lot of people are worried at the moment because IVA's are getting a lot of bad press and some companies are being investigated by the regulators. She gave me an example of a company charging a lot of money to assist with bankruptcy, when in effect it was just helping someone to fill in a form. When I said well I've been charged x amount for making a payment agreement with my creditors and I think that's steep. She just said hmmm.

RAS

Hi

You need to talk to one of the debt charities urgently, preferable CCCS or NDL, both of whom have phone lines available

See here for contact details.

http://www.moneysavingexpert.com/loans/debt-help-plan#help