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| T O P I C R E V I E W |
| debs1007 |
Posted - 04 August 2010 : 13:14:33
Hello
I was reading the bankruptcyhelp org forum and noticed Melanie advise a customer "Another more important reason for you to speak to your IP is that there may have been a clause in your IVA proposal whereby the IP was to retain sufficient funds should the IVA faile and bankruptcy the then option, so that the monies to fund the bankruptcy (£600 each) may be being held by your IP" - regarding failed IVA's dated 4.08.10
I entered an IVA with Debt Free in 2006 which failed in 2009 as I was unable to afford the monthly payments due to a change in circumstances.
I received my IVA failure report stating I had paid in total £6657.32 in 2009.
My creditors originally totalled £36417.
Please can you confirm what happens to the monies paid to the IVA once failed, and where I would confirm if Debt Free have earmarked £600 for bankruptcy and if so why have they advised me?
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| 15 L A T E S T R E P L I E S (Newest First) |
| Skippy |
Posted - 07 August 2010 : 15:03:45
Halifax aren't BR friendly so you would be better off opening a Co-op Cashminder or Barclays basic account (I can't remember the name of it) if they aren't one of your creditors.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| debs1007 |
Posted - 07 August 2010 : 12:48:49
I'm seriously considering declaring myself bankrupt as a DMP looks like I will be paying this debts forever!
I just need to know one thing - when I started my failed IVA I was told to open basic bank account - I have a Halifax account and an Electron card so my salary and DD can be paid, therefore will I have to close this account on becoming BR or as its basic can I keep it open or would Halifax freeze it?? |
| Richard P |
Posted - 05 August 2010 : 18:55:05
i think that it important for someone giving advice on this or the other forum to listern to the client and find the correct option for the client and not pigeon hole an individual because it is easier for the advice giver.
The experts on both forums come highly regarded.
when i sat down with Paul and Ken @ reviva we looked at each scenario, based upon the information provided a DMP and Bankrutpcy was the options i chose.
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| Daniel Griffiths |
Posted - 05 August 2010 : 16:12:15
Not so long ago we had rising house prices full stable employment an IVA was an affordable long term solution, all the debtor had to do was pay all he could afford over to an IP for five or six years, and providing he kept to the agreement it was considered the debt was paid in full, great for the debtor the best a creditor could hope for and an IP made a living along the way. At this time I was involved in writing up IVAs so I know a little bit about them, however we are not in those times any longer I used to know of many proffessions that were safe from the chop of unemployment I do not anymore, as I said even public workers are now in line to lose their jobs and not many can safely say they can keep up this type of arrangemnt for that period of time, an IP by way of his/her proffession can only in their role of supervisor look after the interests of the creditors not the debtor, there are possibly many who are happy with their IVAs but a good percentage come on the site thinking an IVA will solve their problems and see it as some sort of Olive Branch only to report on here 12 to 18 months later that the arrangment has failed. Although I personally could still make good fees recomending IVAs and introducing cases to IPs I have agreements with I find due to the present failure rate I am not willing to do so. |
| Bridgewood |
Posted - 05 August 2010 : 12:31:38
I think the last few posts sum this up particularly well
It isn't that any one procedure for dealing with debt issues is inherently bad or wrong, it is that some procedures are better than others for some circumstances.
The main point is that you need to know what the options are, and the advantages, disadvantages, pros and cons of each one to enable you to make an enlightened decision.
It isn't for an "advisor" to tell you what is best for you, it is for the advisor to give you all the information you need to enable you to decide which route is best for you
You may decide to take a course of action that others would not recommend (e.g. DMP instead of IVA, or IVA instead of bankruptcy for example), but, as long as you are fully aware of the options and alternatives that is your choice
Soapbox has now been put away for today
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
| Skippy |
Posted - 05 August 2010 : 11:13:22
I agree. That's why if I suggest that someone speaks to an IP I point them in the direction of IVA.com as you can see reviews of companies as well. Also, the experts who post on the IVA site are all extremely reputable and give unbiased advice.
An IVA wasn't the right option for me, but the company that I spoke to didn't even tell me about a DMP (although it wouldn't have been suitable really) and they told me that I didn't want to go BR.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| gettingoutofdebt |
Posted - 05 August 2010 : 10:58:39
quote:
Originally posted by Skippy13
I do feel that Daniel Griffiths' comment about IVAs is very harsh as many people are happy with an IVA as they either have assets to protect, have a job that would be affected by BR or feel a moral obligation to repay money that they have borrowed.
I think the main problem is that people are being made aware of all of their available options. People who have creditors ringing them 20 times a day are very stressed and when they find a way to resolve their financial problems they jump at the chance even though an IVA may not be their best option. I agree that an IVA is a good option for some people but there may be better options for other people.
I was very lucky in that I stumbled across the iva.co.uk forum and spoke to Tina from Melanie Giles who explained the DMP, IVA and BR processes and, after thinking it through, I decided the best option for me was BR. The problem is the debt management industry is completely unregulated so there are lots of companies that advise people to set up a DMP or IVA so that the company gets a lot of money and make BR out to be a very bad choice, which isn't always the case. |
| Skippy |
Posted - 05 August 2010 : 10:20:02
I am neither pro IVA or pro BR as both are excellent debt solutions. I do feel that Daniel Griffiths' comment about IVAs is very harsh as many people are happy with an IVA as they either have assets to protect, have a job that would be affected by BR or feel a moral obligation to repay money that they have borrowed.
I tell people to speak to an insolvency practitioner as they can then discuss all options, whereas many BR assist companies will obviously lean towards BR.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
| debs1007 |
Posted - 05 August 2010 : 08:47:06
I feel like I have been paying these debts forever!
Originally the larger loans were accepted on joint incomes using my ex-husbands and my names, income ect.
Previously repayments were made every month. Then in Dec 2003 I suffered a near fatal asthma attack and was in ITU for 10 days, I had PPI but the insurance refused to pay as I had a pre-exisiting condition! We struggled to pay the repayments.
Then in 2004 my husband and I separated and I was hounded for the debts. I kept telling the loan companies they were joint debts and they didn't take any notice. I later found as the loan applications had my name first I was liable for the debts.
In 2004 I contacted the CCCS and entered a Debt Management plan to repay something. In 2006 I decided I would sort out my finances and spoke to the CCCS about an IVA who passed my details to DFD, and my IVA started in Aug 2006.
Then in 2008 my daughter lost her job and I lost her contribution to the household income and was unable to afford the IVA repayments, subsequently the IVA failed in Aug 2009.
I checked my credit report on Experian and found the total amounts defalted to my creditors had not changed, the full amount borrowed was still showing?
So after all the payments made to CCCS & DFD made no difference to the balance of the debts as made my credit file does not reflect these payments. Now it feels like I've been paying towards these debts for ever hence my search for debt help and advice.
It looks like to be totally free of these debts will be to go down the bankruptcy path, I have no assests, no car, luckily I work, and rent my house from a HA.
Thanks everyone for your help  |
| debtinfo |
Posted - 04 August 2010 : 21:00:05
quote:
Originally posted by Daniel Griffiths
I have lost count of the number of people who enter these schemes for them to fail between one and two years,
About 30% of all the IVA's that start, IVA's were up by a big amount last year, thats going to be alot of bankruptcy in a couple of years |
| Daniel Griffiths |
Posted - 04 August 2010 : 20:13:58
Hi Debs 1007
This is a miserable position to be in but typical of IVAs, I have lost count of the number of people who enter these schemes for them to fail between one and two years, debtors have to pay out thousands of pounds in fees to an IP before 1p goes to any creditors. In these very uncertain times debtors should think very very carefully about entering these schemes as many will lose their jobs,even now public workers, many are put on short time, some ending up divorced many reasons for failure. Before I am jumped on by the Pro IVA soldiers who refer people on this site and the sister site to proffessional IPs, I understand that debtors wish to as much as they can, repay what they can afford to creditors, and should be applauded for doing so, but an IVA against an Income Payments Order in Bankruptcy will only give a better dividend if the IVA runs its full course. I am sorry Debbs but even though there may be a clause in the IVA to retain funds for your bankruptcy creditors at the final meeting will most likley go against it especially if you have no assetts, you have been penniless for three years and are back to where you began, you only have one choice and that is to beg, save, or borrow the £600, around 10% of what you have already paid out to petition for bankruptcy and hope your story may save others from similar fate. |
| debs1007 |
Posted - 04 August 2010 : 18:51:08
Thank you
But does anyone have any suggestions what my next options should be... I do not have £600 to declare myself bankrupt and from my last IVA experience I do not want to enter another IVA as not that I have the disposalable income to repay an IVA.
So far I've only had 1 creditor chasing me for payment which I haven't agreed to anything yet as it was the smallest debt. But the larger debts were dating back to 1997 & 2002 can they still request repayment? |
| gettingoutofdebt |
Posted - 04 August 2010 : 18:26:29
No wonder there are a lot of debt management companies that are pushing people towards an IVA and scare them off bankruptcy. You have struggled for the last 3 years paying 100% of your disposable income to try and clear your debts and all the money you have been paying has gone to the IVA firm and nothing to your creditors!
If this isn't a good reason for debt management companies to be officially regulated then I don't know what is. |
| Bridgewood |
Posted - 04 August 2010 : 17:32:37
Hi debs1007
From what you have said it appears that everything you paid went to DFD for their fees and expenses, nothing was paid to creditors, and nothing retained for bankruptcy.
It may be worth checking the original paperwork to see if they should have retained anything to cover the bankruptcy, but I think it is standard for DFD that they don't
Good luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
| debs1007 |
Posted - 04 August 2010 : 16:35:34
Thank you Bridgewood
I have checked my paperwork and located the final report and its states I made contributions totalling £6653.00
Intrest = £4.32
= £6657.32
Payment breakdown by Debt Free
Nominee Fee £2500.00
Supervisor Fee £2872.17
Office Holder Expenses £315.55
Distributions £0.00
VAT £969.60
Total: £6657.32
Does this mean no monies were paid to my creditors and Debt Free kept all the monies I paid, and I don't think they've emarked any of the payments incase of bankruptcy as I can not find any record of it.
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