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| lee8040 |
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lee8040
Nearly there...
Joined: 27 Jan 2006
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| Drew |
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Drew
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 Posted: 17:36 - 08 Oct 2006  Post subject: |
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This will be a fun post if R1stu's post is anything to go by 
Yes i am in an IVA, but im not getting 80% wrote off, i got maybe 12% at max wrote off, but at least im paying most of my debt back  |
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| Davo |
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Davo
Davo To The Rescue!
Joined: 05 Apr 2004
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| Posted: 17:41 - 08 Oct 2006 Post subject: |
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Go & have a look at www.fool.co.uk or www.moneysavingexpert.com , there are forums specifically set up for these kinds of issues.
Below is a what one of the users wrote a while back.
| TMF User wrote: | An Individual Voluntary Arrangement (IVA) is a formal arrangement proposed to creditors, by a Licensed Insolvency Practitioner (IP) on your behalf and is designed to give the creditors a better return than they would get, than if you declared bankrupt. IVA's usually last for between 2 - 5 years.
As always, there are advantages and disadvantages with an IVA but it is generally thought preferable to bankruptcy. IVA's have evolved quite a bit since I first started this website. Much of the changes have been brought about by Insolvency Practitioners acting on behalf of finance and credit card companies and they have advised their clients to introduce new clauses into the agreements, such as a remortgaging clause where the individual is asked to remortgage in year 4 to introduce a lump sum into the pot for the creditors. Remember, that an IVA is your proposal to creditors and your proposal should be something that you can realistically afford.
For your IVA to succeed, it must be realistic and it must provide a better return for your creditors than would be otherwise the case if you declared bankrupt. You must also achieve a vote of 75 per cent in value, of your creditors attending the creditors meeting, for your proposal to be binding on all of the creditors. If one of your creditors has been notified of the meeting and does not attend, then they will also be bound to the proposal.
These days, you are no longer asked to pay up front fees and most IP's will agree their fee with the creditors and this will be deducted from the contributions that you make on a monthly basis. It is vitally important that you choose an IP who will be on your side and who will not treat you as just a number like the big IVA factories do. Under no circumstances, enter into an agreement with an Insolvency Practitioner or an agent acting on their behalf, who requires you to make any payment up front. If you are not sure who to trust, contact me and I will either recommend an IP to you or will point you in the right direction, free of charge.
So how do IVA's work? An IVA is an agreement between you and your creditors to pay a per centage of the debt that you owe to them over an agreed period, usually between 2 and 5 years. It must be prepared by an IP who will be known as your nominee. Your nominee will prepare a statement of affairs from the information that you have given to them and will calculate a proposal which will be presented to creditors, at a creditor's meeting. The first thing that your nominee will do, is to get an interim order from the Court, which will prevent any of your creditors taking any legal action against you, before the creditor's meeting.
You do not necessarily have to attend the creditor's meeting but it is advisable in case any variations are needed. At the meeting, your nominee will present your proposal to creditors and they will vote for or against or, they may vote for the proposal with modifications. If the proposal succeeds (you achieve 75 per cent (in value) or more of the creditors voting for the proposal) then it becomes legally binding upon the rest of the creditors, regardless of whether they have voted against it. Your nominee will now become your supervisor and you will pay the agreed monthly payment to your supervisor, who will distribute the dividend to creditors at the end of the arrangement.Provided that you keep up your payments, your IVA will be satisfied at the end of the agreed term and you will not have to pay anything further to your creditors. |
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| lee8040 |
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lee8040
Nearly there...
Joined: 27 Jan 2006
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| Ste |
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Ste
Not Work Safe
Joined: 01 Sep 2002
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| Posted: 18:20 - 08 Oct 2006 Post subject: |
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Whats the disadvantage of getting yourself into stupid amounts of debt then getting a IVA so a large amount of it is written off? Don't
see any real life disadvantages to it, all it does is encourage people to not look after their money and let soceity foot the bill.  |
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| KevTM |
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KevTM
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Joined: 15 Apr 2004
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| Drew |
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Drew
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| Posted: 18:49 - 08 Oct 2006 Post subject: |
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They claim your credit rating wont be affected after the 5 years, but in all honesty, you will find it very hard to get credit i would think for a long time to come in the future.
if you are in bad debt, you have 3 options
1, pay it back, which i would do if i could, but i was stupid, i admit it, and got in too deep where i could not even manage the minimum repayments.
2 bankrupt, where your creditors get nothing i belive
3 IVA - where the creditors get a percentage of what is owed to them, which they usually accept as its better for them than the bankrupt option.
As for the people who say, well i will spend loads of money, get into debt, and take this easy way out of paying it back, then go for it, but you will find getting credit hard in the future.
Last edited by Drew on 18:54 - 08 Oct 2006; edited 1 time in total |
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| KevTM |
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KevTM
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Old Thread Alert!
The last post was made 19 years, 360 days ago. Instead of replying here, would creating a new thread be more useful? |
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