955i Posted February 2, 2012 Report Share Posted February 2, 2012 Due to cash flow problems with the business and the need to reduce my outgoings to suit incomings I talked to a company about an IVA. It all sounds good on paper, but I can't help thinking that there is a catch (must be my suspicious nature ). Does anyone have knowledge/experience of these schemes? Quote Link to comment Share on other sites More sharing options...
Mungler Posted February 2, 2012 Report Share Posted February 2, 2012 Yes, they are the death of a thousand cuts, and the debtor normally ends up paying back substantially more than the principle debt (the administrator's fees will be outrageous, and the longer the IVA e.g 5 years then the more you pay). Also, as far as credit referencing goes, going into an IVA is as bad as going bankrupt. I see lots of people who end up going into IVAs or bankruptcy for all sorts of wrong reasons - bloke down the pub said it would be alright etc. Best one, bloke with shot credit rating and at least £100k of equity in his house (which he couldn't release because he couldn't get a re-mortgage or further secured borrowing and because he didn't see it coming and gear up to an orderly sale of his house to cash out and get the equity) - he went bankrupt for £3k non payment of council tax. The thing was though, the trustee who was then appointed to administer his affairs then geared up 12 months laters for forced sale of the house for rock bottom auction money and then add on £15k of trustee's and legal fees for the process. Quote Link to comment Share on other sites More sharing options...
welsh1 Posted February 2, 2012 Report Share Posted February 2, 2012 Contact your creditors yourself and arrange meetings,be upfront with them and thrash out a repayment plan with each creditor,get it all written down and both sides sign. That way they will see you as a human ,not someone semi official from a liquidators office or debt management company,and most will appreciate you being up front and wanting to pay. Also you won't be paying fees to anyone else,therefore all your money is available to sort the debts out. Just be realistic,and don't offer more than you can afford,otherwise you will soon come unstuck,sometimes honesty really is the best policy. Good luck. Quote Link to comment Share on other sites More sharing options...
Sprackles Posted February 2, 2012 Report Share Posted February 2, 2012 Go to consumeractiongroup.co.uk Google it. You will find all the help you need there. An IVA is as has been said, death by a thousand cuts. Only use in extreme circumstances. Once you have completed it, you will be expected to refinance your home to pay back and in 99% of cases, you pay back more than you owed in the 1st place. Quote Link to comment Share on other sites More sharing options...
Vince Green Posted February 2, 2012 Report Share Posted February 2, 2012 (edited) A work collegue did it couple of years back. Death by a thousand cuts is about right. Go to Citizens Advice Bureau PDQ and listen to what they tell you to do. DO NOT talk to any of these companies. They are vultures. Edited February 2, 2012 by Vince Green Quote Link to comment Share on other sites More sharing options...
marktattoo Posted February 2, 2012 Report Share Posted February 2, 2012 as per post #3 contact your ceditors yourself and try to come to some suitable arrangment, did this many years ago in the early 90's recession. Had to come to a arrangment with one of the high street banks to a lot of arranging as they wouldnt belive a word you tell them and demand the unrealistic, with me in the end it got to the stange where I just told them to take me to court and I would basically guarantee they would get less than I was offering to pay them, after this they settled with what I offered and I also got any further intrest and charges frozen. However it may effect your credit rating for a peroid, at the time didnt bother me and since paid them off and rebuilt my credit rating many years ago. Best of luck Quote Link to comment Share on other sites More sharing options...
Iced Tiger Posted February 2, 2012 Report Share Posted February 2, 2012 (edited) As per above, contact them yourself. Edited February 2, 2012 by Iced Tiger Quote Link to comment Share on other sites More sharing options...
handy4454 Posted February 5, 2012 Report Share Posted February 5, 2012 A few years ago I ran into trouble getting my money in,I was owed several thousands of pounds and as a subcontractor could not pay off my monthly accounts for materials,the red reminders and threats of account closure started so my only chance of continuing work was to contact the firms that I owed and work out a plan to repay,all but one company accepted this and allowed me to to use my accounts to work my way out of trouble, talk to the people involved and form a realistic plan,do it soon chap and all the best handy Quote Link to comment Share on other sites More sharing options...
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