Anybody know about IVA's (debt)?

[ukpartydj]

I'm a creditor to an individual who has contacted a debt management company and has filed an IVA proposal which includes the monies they owe me.

I've received a shedload of paperwork on the matter and quite frankly think the debtor is taking the absolute :Censored::Censored::Censored::Censored: - £95 per month for clothing, over £100 on TV, Phone and mobile and a random £160 "you can't touch this fund" per month yet they cannot pay me more than £20 per month!
Does anybody know how these work, I don't really want to agree with the proposal as they have control of the debt however the paperwork seems to suggest I chose the proposal or making them bankrupt which doesn't benefit me at all.

[djdj]

I'm a creditor to an individual who has contacted a debt management company and has filed an IVA proposal which includes the monies they owe me.

I've received a shedload of paperwork on the matter and quite frankly think the debtor is taking the absolute :Censored::Censored::Censored::Censored: - £95 per month for clothing, over £100 on TV, Phone and mobile and a random £160 "you can't touch this fund" per month yet they cannot pay me more than £20 per month!
Does anybody know how these work, I don't really want to agree with the proposal as they have control of the debt however the paperwork seems to suggest I chose the proposal or making them bankrupt which doesn't benefit me at all.

Used to work for a debt company and my advice would be if you are offered some sort of payment take it!
If it goes to court and the judge can see that payment has been offered and refused (however small) it doesn't go down well.

[Andy Collins]

If the sums on that IVA proposal are correct then I very much doubt that it will be accepted. A application means nothing. If I were you I would seek professional legal assistance asap.

[ukpartydj]

Used to work for a debt company and my advice would be if you are offered some sort of payment take it!
If it goes to court and the judge can see that payment has been offered and refused (however small) it doesn't go down well.

I quite agree - previously I agreed they could pay £200 per month, they failed, then £50 a month, they failed - court action, bailiffs involved who failed, agreed on £20 a month which would take 7 years because I refused to be the nice guy and stop adding interest which they are currently paying minus solicitors fees at £10 per collection.

If I accept this one the payments will fall even more so I'll be getting like £5 per month on the £1300 they owe.


If the sums on that IVA proposal are correct then I very much doubt that it will be accepted. A application means nothing. If I were you I would seek professional legal assistance asap.

If it was a year ago Andy I would, I've had enough with this debt malarky, many wasted hours and ££ I know from the figures and because the debtors are telling porkies about their income expenditure etc the court don't give one because they look financially crippled on paper.

They must not have a single brain cell in their heads because the debt management company is adding £2500 to their total debt of £12k for "managing their debts".

Done a bit more research and it seems if I and 75% of the debt owners don't agree they may file for bankruptcy which means nobody gets anything really because they have "no assets" ... I'd like to know what they're watching their £50 sky package on... surely thats an asset?

[DazzyD]

Sky is a contract and if they're still in their contract period, they've got to pay it regardless.

I'll be honest in that I know a lot about debt collection - from both sides of the fence - and these IVA companies take your eyes out. When I got in to bad debt that I couldn't handle, I got advice and help from StepChange which is the former Consumer Credit Counselling Service (CCCS - government backed charity) and they've been brilliant. And their service is free! What I will say is that they were pretty thorough with my income and outgoings and not one of my creditors have refused the offer from them. It'll take me 6 years to be debt-free but I've finally gotten off this debt/credit merry-go-round and I can see a clear future which, a year ago wasn't the case.

You're probably best off taking professional advice on this matter but, if you don't want that expense, then maybe take the offer as something is better than nothing.

[djdj]

Really feel for you!
IVA is a minefield, and it looks like you have already bent over backwards for this one.
I know anyone can get intro debt problems but there are those who know how to play the system and end up paying nothing.

[ukpartydj]

Sky is a contract and if they're still in their contract period, they've got to pay it regardless.

I'll be honest in that I know a lot about debt collection - from both sides of the fence - and these IVA companies take your eyes out. When I got in to bad debt that I couldn't handle, I got advice and help from StepChange which is the former Consumer Credit Counselling Service (CCCS - government backed charity) and they've been brilliant. And their service is free! What I will say is that they were pretty thorough with my income and outgoings and not one of my creditors have refused the offer from them. It'll take me 6 years to be debt-free but I've finally gotten off this debt/credit merry-go-round and I can see a clear future which, a year ago wasn't the case.

You're probably best off taking professional advice on this matter but, if you don't want that expense, then maybe take the offer as something is better than nothing.

I understand what you mean I just feel it's simply wrong and quite funny that a Sky TV package is a contract they need to pay and spending £500 on food, £100 on clothing a month as an essential whereas the contract they made with me nearly 2 years ago is something they are allowed to pay off over 7 more years!!!

Also it should be added that they received my money and decided to spend it rather than give it to me, which in my opinion makes it robbery but anyways I'm just ranting now, I just find it disgusting that they spend more money per one person than myself and my girlfriend spend between us and this bent system allows them to force me to wait for my money whilst they enjoy spending it!

Sounds like you've managed to sort things out for the better, I think the only reason they want an IVA is because legally I cannot chase them anymore


Really feel for you!
IVA is a minefield, and it looks like you have already bent over backwards for this one.
I know anyone can get intro debt problems but there are those who know how to play the system and end up paying nothing.

Indeed, I know if they go bankrupt all their debts are written off - the cost to them would be they would have a limited life in that mortgages, credit cards, jobs etc are out of range but it seems no consolation.
Feel like the government (or whoever makes these rules) has screwed me by not treating them like criminals and calling it a "civil matter", screwed me by not allowing the bailiffs to enter their home and take everything they have without their permission and now is screwing me even further by telling me I have to agree to this stupid IVA or possibly get absolutely nothing!

[DazzyD]

My solution isn't an IVA it's a Debt Management Plan. It's more flexible and doesn't have the legal constraints of an IVA. But, because I'm doing it with the help of StepChange, this carries a lot of weight as my creditors know StepChange has done all the groundwork with my finances so they don't have to. Also, the benefit to me is that it's free. With IVAs, the debt company puts on their own fees which can be substantial. The downside is that, unlike IVAs, creditors don't have to freeze charges and interest but I've been lucky as my creditors (payday loan companies - all my fault - I don't blame anyone or anything else) have been quite good. There are a couple of exceptions , though! :o

But my situation is very different to yours - not just in being on opposite sides of the fence, so to speak. And there's only you can decide which way you want to work it. :)