IVA support and discussion thread
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UpToMyNeckInIt wrote: »Thanks for the input FTR & DC.
Go to agree about the 2 quite different attitudes that apply to this and the other forum respectively (hence why I regularly peruse both, and form my own opinion).
DC: That report (I'm guessing from c2008/2009?), made interesting reading. I agree that much of what the author was concerned about is still present today - particularly regarding mis-leading claims, and selling the product to people for whom it is not the best solution.
Oh yes, and the use of DLA 'income' by some IVA firms in general income/affordability calculations - utterly disgraceful, and something which I recall from a recent forum post, may still be an issue.
However, paras. 40 & 110, imply that IVA homeowners WILL HAVE to remortgage/equity release 100% equity or sell the house!!! Not the case now, but was it really as harsh as I have read it, back then? (I am aware that pre-2010 protocols had much harsher equity release terms, so perhaps this was the case the time - certainly not a prospect for the faint hearted as you say).
A clear equity release of up to 85% and subject to affordability criteria is enshrined in modern IVA's - certainly would not have signed up to the pre-protocol version!
Interesting as well that the ASA did not pursue the complaints about claims of up to '75% debt being written off'; and 'set you debt free in 60 Months' (paras. 100-101). Is this because this is true in many cases? (Clearly not in all cases admittedly, obviously).
Other areas of the report, such as the fees involved, clearly are not quite so much of an issue today (£3-5K fees seem the norm nowadays) £10K back then? - pure extortion!!!
Seems to me that the competition from the debt charities may have gone some way to drive fees down and remove misleading advertising (a good thing), and I only hope that the CAB, the charities, the OFT, ASA and the private sector, continue to work to improve things further.
As I said on the other forum: Clearly a lot more work needs to be done to reduce the 35ish% of IVA terminations.
Hi
Very interesting post again
It was 2008 if my memory is correct with much debate before then.
The report is a little dated now and there have been many developments since, for the better or worse are good questions and open for debate just as it was then really.
As I have said in my post to FTR it is fascinating to look back and compare today.
The PPI issue was not heard of then and now we have the secured loans, the failure rates are horrendous whichever way you look at it my opinion.
A really worrying aspect of the report is that it was from 5 or 6 years ago, time has flown, it really has.
Time and tide waits for no man, they say, they are right yer know
My take
DC0 -
Hi
Talking about reports, what about this from R3?
Really interesting 'talked about' reforms, the DRO stuff has been 'talked about' a while now and would make a real difference for many
http://www.r3.org.uk/index.cfm?page=1114&element=19651&refpage=1008
Radical stuff but it has been coming
If implemented this would shake the debt advice sector
What is best for those in debt I say, wonder if some of the other agencies and companies will agree:)
My take
DC0 -
The change to the 2014 IVA Protocol is real.
The problem for you and for others looking at an IVA now is that you are being asked to agree to something that might or might nor happen in 5 years time. I suggest you google
IVA Protocol 2014 change
to see how people are reacting to this.
This doesn't mean that it will have to be used for your IVA, you could ask for the clause to be removed from your proposal.
Or Stepchange could assure you that they would never make someone take a secured loan, but I think I would want that in writing from them!0 -
Depth_Charge wrote: »Hi
Talking about reports, what about this from R3?
Really interesting 'talked about' reforms, the DRO stuff has been 'talked about' a while now and would make a real difference for many
http://www.r3.org.uk/index.cfm?page=1114&element=19651&refpage=1008
Radical stuff but it has been coming
If implemented this would shake the debt advice sector
What is best for those in debt I say, wonder if some of the other agencies and companies will agree:)
My take
DC
It was a very interesting read DC although naturally it does have to be taken in context of who commissioned the report. However there were some valid points in there, especially about the bankruptcy fees being an issue for those with little assets but with a debt too high for a DRO.
One thing that was interesting was the figure that 97% of IVA's in 2009 were modified by creditors before acceptance, based on my own experience that required a modification even though it was a very straightforward F&F IVA, I would assume this is probably still the case and could be one of the many reasons why failure rates are still high, as people are willing to accept terms that are detrimental just to ensure the IVA is accepted.
I am not sure it is entirely agreeing with the recommendations as there are pro's and con's to each of the changes but the report has offered some sensible solutions to debt that are now in their current form very much out of date, especially with the levels of debt that are a factor with some of the options.
In order to instill confidence in the public as a whole, the idea of a different tier to bankruptcy could be a more suitable form, as although the majority of those entering into bankruptcy see it as a last resort and are desperate, recent celebrity high profile cases of bankruptcy have done little to dispel the public perception that those who are reckless can just apply for bankruptcy and then go back leading the life they did previously (which ties in with an earlier R3 report that 58% of the population believe this)
There are never going to be solutions that will cover every scenario in debt but I did think the report made some headway in looking at modifying the current debt solutions into something more workable. As we have debated on here many a time, the options that are currently available are rarely in the best interests of those in debt, and in many circumstances are weighted more towards the creditor. Although I suspect that in some cases of those providing "impartial" advise would not agree that the changes would benefit the people they advice, especially when you consider the rise of DMP's which are very more often than not in favour of the creditor, especially as the reforms would lead to more people seeking a permanent solution to their debt problems rather than being 'trapped' in a never ending DMP.
However it is all rather hypothetical as many bodies have called for debt reforms but we are unlikely to see such radical changes.
Wisdom comes from experience. Experience is often a result of lack of wisdom.0 -
Hi
More interesting stuff from R3 -
http://www.r3.org.uk/index.cfm?page=1114&element=19676&refpage=1008
DC0 -
Thank you for the very helpful responses.
I had a phone meeting with an IVA advisor this morning who answered LOADS of questions for me.
I still have one major question though.
Does this new 2014 IVA protocol 9.2 mean i could be forced to take out a secured loan to release equity?
I have AGAIN asked a different advisor who apparently asked the IP and they stated NO THEY WOULD NEVER MAKE ME TAKE OUT A SECURED LOAN!
They said basically the secured loan IS the remortgage so i would be expected to take out a secured loan purely because that is what a mortgage is.
What am i expected to believe?0 -
Just completed my first review one year into my IVA.
The paperwork came through over Christmas and so got left for a while. I completed it quickly and sent it off leaving the budget as it was and making no changes, assuming that repayments would remain the same.
Received a letter yesterday from Stepchange (formally CCCS) advising that my monthly payments are to increase by £34 to £144. I'm unsure why as my wages are the same as they were a year ago and can only assume they underestimated when I took out the initial agreement.
Anyway, I have 2 questions that hopefully somebody will be able to advise on....
(1) Am I able to amend the budget to increase expenditure now the review is complete or do I have to wait until the next review in a year's time?
(2) I've also noticed and entry on the budget for a TV License payment (£19 per month). This would have been listed when negotiating the original agreement as I was in the middle of moving house and assumed I would have to pay it. I since discovered that my landlord's license covers me so do not pay this. Should I contact my IP to let them know or should I say nothing? I understand they are likely to increase my payments even higher by this amount (making it £163 per month) but my greater concern is, are they likely to request repayment of this amount for the previous year (12x19=£228)
Many thanks for any advice greatfully received!0 -
Hi, i'm new to the forums but have read most of the comments regarding IVAs.
I am currently in month 54 so yes there is a light at the end of the tunnel. I received a letter from my IP requesting that we now obtain two re-mortgage quotes from reputable brokers/lenders to satisfy the Supervisor that the equity realisation is the maximum achievable.
Now i'm sure you are all not suprised when I tell you that I can't even get past the first page of mortgage quotations online, i've printed off the "sorry we cannot help you" screens, will that be enough?0 -
wetweekend wrote: »Just completed my first review one year into my IVA.
The paperwork came through over Christmas and so got left for a while. I completed it quickly and sent it off leaving the budget as it was and making no changes, assuming that repayments would remain the same.
Received a letter yesterday from Stepchange (formally CCCS) advising that my monthly payments are to increase by £34 to £144. I'm unsure why as my wages are the same as they were a year ago and can only assume they underestimated when I took out the initial agreement.
Anyway, I have 2 questions that hopefully somebody will be able to advise on....
(1) Am I able to amend the budget to increase expenditure now the review is complete or do I have to wait until the next review in a year's time?
(2) I've also noticed and entry on the budget for a TV License payment (£19 per month). This would have been listed when negotiating the original agreement as I was in the middle of moving house and assumed I would have to pay it. I since discovered that my landlord's license covers me so do not pay this. Should I contact my IP to let them know or should I say nothing? I understand they are likely to increase my payments even higher by this amount (making it £163 per month) but my greater concern is, are they likely to request repayment of this amount for the previous year (12x19=£228)
Many thanks for any advice greatfully received!
Hello wetweekend and welcome. I would say the increase was probably due to the tax allowance as I had a similar increase last year.
As for the TV licence I would rather be inclined to leave it as it is as it leaves you a tiny buffer, and seeing they accepted a £19 payment when it is only £13 per month then they obviously haven't queried it! Of course others on here may have a different opinion but an IVA is tight enough on budgets without quibbling over a small amount such as that.
Wisdom comes from experience. Experience is often a result of lack of wisdom.0 -
SecretaryTypeBird wrote: »Hi, i'm new to the forums but have read most of the comments regarding IVAs.
I am currently in month 54 so yes there is a light at the end of the tunnel. I received a letter from my IP requesting that we now obtain two re-mortgage quotes from reputable brokers/lenders to satisfy the Supervisor that the equity realisation is the maximum achievable.
Now i'm sure you are all not suprised when I tell you that I can't even get past the first page of mortgage quotations online, i've printed off the "sorry we cannot help you" screens, will that be enough?
Hello Secretary and welcome. As each IP seems to have different rules and ideas, it would probably be best to contact your IP to see if this is acceptable and if not what paperwork they require to show you are unable to re-mortgage.
Well done for getting this far and wishing you all the best for the remainder of your IVA.
Wisdom comes from experience. Experience is often a result of lack of wisdom.0
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