IVA support and discussion thread

An excellent post UTMNII as I think it covers a lot of points about what kind of advice there is out there especially. I think a major problem is for some people they struggle on with the debt, hoping things will get better or hope it will go away, or there is a sudden change in circumstances and due to the stress and panic of that, tend to naturally go with the advice they are given dependent on who they first turn to, after all these are debt advice 'specialists'.

Very few people deliberately go out of there way to accumulate debt and so I think a lot of people choose to go for a DMP because they feel it is the right thing to do to pay back all of the money and I think this sometimes gives false data of what some of the debt charities advise. I was never advised to go into a DMP because of my level of debt but I chose it as I needed breathing space until I had final figures.

IVA's and bankruptcy are not to be taken lightly and in my own opinion that it is perhaps the formality that concerns a lot of people and think in some way a DMP is less damaging to their finances.

To me it is all about research and I am very much for the DMP as a stepping stone if you are really undecided about what to do, so you can assess the level of debt and how best to approach it depending on personal circumstances. But in reality how many people can in a way step back from their own debt problems and objectively look at all the options, which is why there is a big reliance on going with whatever advice they are given from both the charities and the private sector.

I think there has been an awful lot of mis-selling of IVA's especially in the past which is creating the problems we are seeing now and I do think that as a whole the industry is learning from the problems that have been created but you will still get the odd rogue firms out there, as is any sphere of business, which is a shame as for some people I really do think an IVA is the best solution out there.

I think what it has show from both my posts and that from yours UTMNII is that yes seek advice but also be strong enough to treat it as just that - ADVICE - and don't just assume that because that is what has been recommended, it is the right way to deal with your debts, and that not to entirely rely solely on the free advice charities but to also get advice from the private sector as if you are choosing the IVA route, generally and this is in my very own opinion, you will may get more specialist advice from those companies that solely deal in IVA's and have a lot of experience in this area (sure DC will correct me on that one!).

Entirely my own opinion but I think the idea of entering into a form of insolvency is scary for a lot of people and that the DMP is a more 'acceptable' form of dealing with debts, regardless of the fact in some cases they are going to spend years paying it off.

It also doesn't help that you tend to hear a lot about how the wild promises made by some IVA firms about being able to write off a significant amount of debt in just 5 years, when in reality it can be more than 5 years and a lot more to be paid in with PPI and windfalls. Bankruptcy can see a far more attractive option, especially it you have negative equity or very little in assets but then there is still the stigma regarding that for some people, how you are forever listed in the London Gazette and how some newspapers are back to publishing the details. Is this culture of being ashamed of debt stopping some people from choosing the right option?

Well I suppose the point I was trying to make rather badly is that some people are very ashamed at being in debt, don't even tell close friends and family and may be put off by details being published in a number of places should anyone care to have a nose for whatever reason by going for either an IVA or Bankruptcy.

I totally agree DC that the debt remedy tool should be made much more clearer it as a very rough guide and should be treated as such. Although it does have it uses for people who are perhaps nervous about speaking to someone in person about their debts in order to get an idea of their options. This after all the internet age where most things are there at a click of a button.

I do agree that there should be more consideration for costs associated with owning a vehicle. With job opportunities as they are, more people are having to travel and to rely on public transport is not always practical. My heap of a car is actually worth the value and (touch wood) is relatively cheap to run but only because it had pretty much had just about everything replaced before I went into an IVA, if it was at that stage now there is no way I would be able to afford to keep it on the road.

So considering that IVA's tend to be more generous in the value of the car as they seem to understand the concept that in a lot of cases there is no need to review the monthly payments due to less repairs, the same criteria should also apply in bankruptcy.

I presume however that the Daily Mail middle classes would be in uproar should a bankrupt be allowed to have a decent reliable car and so this is perhaps why they are so strict on this. It would seem in this day and age public opinion rather than common sense seems to be the norm.