Advice Needed

[susanc22]

I am in desperate need of some advice

Me and my partner have recently set up DMP with a company while we are trying for an IVA but i feel the companies are not helping very much.

The company we have set up the DMP with, have rarely been in touch with us and i have just found out that they have the incorrect amounts that we owe, one of our loans has been missed off completely!

Also, the company we that is dealing with the IVA is hardly in contact either. When i first spoke to the person from this company, i thought she was our IP but then i received a letter from our IP asking us for an A4 narrative of how we got into debt. I have never spoken to him and i am really concerned that they are not going to truly represent us.

Any advice would be greatly appreciated

[MelanieGiles]

Hi susan

Can I firstly ask why you are doing a DMP and not an IVA in the first place? How much do you owe to creditors? How much is your disposable income? Do you owe anything to HSBC or Northern Rock? And are you a property owner?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[susanc22]

Hiya Melanie,

We owe approx £34,000 to various creditors, mainly Barclays and Egg but none the Northern Rock or HSBCWe have estimated that we have approx £300-£400 disposable income, but the company that is setting up the IVA seem to think we have £440-£560 avaiable
We own our own property but have no equity to release from it unfortunately.
I am really concerned that this will send us into bankrupcy
When we first started our IVA we were told to go into a DMP until the IVA was set up, to release the pressure from our creditors.

[aguise]

Susan may I ask which company this is.

Ang

[susanc22]

The DM company is My Vesta and the company that is setting up the IVA is Grant Thornton

[MelanieGiles]

Susan

An IVA should take no longer than 6 to 8 weeks to put together from start to finish, so I cannot understand the logic of them going to the efford of setting up a DMP to then revert to an IVA! In a way this could almost damage the credibility of the IVA proposal.

Taking an average of £350 per month, this ought to make a perfectly acceptable offer to your creditors. Why does your IP firm feel that you can afford to pay more?

If you are unhappy with the service you are receiving, I suggest you get an alternative opinion form another insolvency practitioner, just to compare the advice you have been given. Certainly creditors are getting much harder with regard to allowable expenditure, however it should be their decision to limit your outgoings and not the IP's! This is where so many IVA candidates fall over, because they seem to be told what to put down, and then find that they cannot afford the repayments. A dangerous game if handled incorrectly!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[aguise]

I was thinking the same susan there should be no need for a dmp while setting up an iva.

Ang

[susanc22]

Thanks for that advice Melanie, it is what i have been worrying about all along but have tried to put it to the back of my mind, telling myself that they are the professionals.

Would it be possible to call the number on your website for a second opinion?

[susanc22]

Thanks for your help Ang, i am now concerned that GT will not allow me to stop the process with them

[MelanieGiles]

At the end of the day it is your decision where you place your case - but I can assure you that Grant Thornton are one of the best firms in this business - and because they do a lot of the voting for creditors as well, they are knowledgable of what is and is not acceptable.

By all means call my office for a second opinion if you want to. That does not cost anything, and may help you to understand where the IP is coming from.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[louiseh]

Maybe the DMP was set up because Grant Thornton aren't taking 6-8 weeks to set up IVAs, mines taken 20 weeks to reach creditors meeting date, and I have no complicated issues and have not caused any delays.

[catullus]

A cynic might suggest that the DMP was first set up to extract the DMP set up fees, then to be passed over to GT for a nice commission. Others might see it as a change of mind!!

[keh]

Hi catullus,

My thoughts as well esp when they pass you over to their SISTER company to do the IVA

Clever people getting 2 lots of fees from one debtor

Now they should be ashamed of themselves


Keith

The long and winding road will straighten out eventually....keep the faith

[Adam Davies]

interesting !!!

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Sadsack]

Please tell me that these companies are not trying to capitalise on debtors????!!!!

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/