Insolvency, a good route to take?

Hi I have been contacted by someone at Fortis Insolvency and I am currently in the process of discussing my debt situation.


The chap seems quite confident that his company can put forwad a proposal to the creditors that will amount to something like 21k over 5 years and the rest of the debt is written off.


Does this sound legit or are they sharks out for my money as well (what little that I have left now)?


What's funny is that I got put through to this company via StepChange site (Deby Remedy or something).


Cheers,


T

Comments

  • sourcrates
    sourcrates Posts: 28,724
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    What they are proposing is called an Individual Voluntary Arrangement (IVA).


    These can work for some people, not so well for others.


    Do you have property or other assets to protect ?


    How much do you owe in total ?


    The amount of debt that can be written off can often vary throughout the arrangement, your payments tend to increase with your increase in income on a yearly basis, and if you are a homeowner you will be expected to remortgage in year 5, if that is not possible, or you don't own a home, you will have to have a further year of payments instead.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • National_Debtline
    National_Debtline Posts: 7,998
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    Hi tahirk555


    The important thing before entering into an IVA is to have had some independent debt advice from one of the free debt advice agencies, such as StepChange. They are there to offer you impartial advice on all of your available options.


    Although you've completed their online debt tool, if you are still concerned call one of the free advice agencies to confirm the IVA is your best option.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • tahirk555
    tahirk555 Posts: 15 Forumite
    sourcrates wrote: »
    What they are proposing is called an Individual Voluntary Arrangement (IVA).


    These can work for some people, not so well for others.


    Do you have property or other assets to protect ?


    How much do you owe in total ?


    The amount of debt that can be written off can often vary throughout the arrangement, your payments tend to increase with your increase in income on a yearly basis, and if you are a homeowner you will be expected to remortgage in year 5, if that is not possible, or you don't own a home, you will have to have a further year of payments instead.


    A lot, 260k give or take...complex case part fraud done against my name part bad lucking with the housing market.
  • tahirk555
    tahirk555 Posts: 15 Forumite
    Hi tahirk555


    The important thing before entering into an IVA is to have had some independent debt advice from one of the free debt advice agencies, such as StepChange. They are there to offer you impartial advice on all of your available options.


    Although you've completed their online debt tool, if you are still concerned call one of the free advice agencies to confirm the IVA is your best option.


    Susie
    @natdebtline


    Susie hi can you recommend any its bit of a minefield out there.
  • tahirk555
    tahirk555 Posts: 15 Forumite
    Spoke to National Debt advice and then a leading insolvency company and the guy was quite frank after having a chat about the amount and the complexity of the case he advised I would be better of getting legal advice and an IVA may not be possible (Because I would be admitting liability of the two other mortgages that make up the 260k amount).

    A lottery win would be nice right about now....
  • sourcrates
    sourcrates Posts: 28,724
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    tahirk555 wrote: »
    A lot, 260k give or take...complex case part fraud done against my name part bad lucking with the housing market.


    21k over 5 years on a debt of £260.000..........is not going to happen.


    Do you own property ?


    If so, then an IVA may be suitable, but those figures are way out.


    First off it will be six years minimum, if you have a house, you are expected to remortgage in year five to release equity for your creditors, if you cannot do that, the arrangement can be extended up to 7 years at your IP`s discretion, of course it does depend on your income as well.


    Do make sure you take advice from more than one source (who is, by the way, trying to sell you something).


    Any reason why Bankruptcy is not an option ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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