NO matter, for my two pennorth I'm totally with Andy here, if lenders think it is a good idea to advance credit to people on benefits, then they should be prepared to accept whatever debt solution is right for that client, should the need arise.
Whilst any such proposal would by necessity be non protocol, that doesn't really matter if it is the appropriate solution to the problem. As for a 3 year old report on the BBC website, well if a week is a long time in politics then 3 years is an eternity in the debt resolution industry and sweeping statements/generalisations do not do anyone any good in the long run, all cases MUST be treated on their own individual merits.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I would just like to say that I was not being judgemental, merely answering the post where ladyc said she was going to pay her creditors the bare minimum because of the way they had treated her.
For us, as she asked, we are paying back a minumum of 69p in the pound, probably more, dependent upon how much equity is in our house at the time we have to remortgage.
At the end of the day we borrowed the money, with every intention of paying it back. We are doing our best to do so.
I wasn't impressed with the creditors attitude either, but accept that they want their money back.
I just object to the methods they use to do it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I did not think you were judging anyone - your value, to use my husband's words is that you say what you think without fear or favour. H has asked me to say to you "keep it up"! J
The benefits issue is a red herring. Ladyc has sufficient equity to repay her creditors in full so does not qualify for an IVA. It is a shame that because she has worked and built up assets that these have been lost and I do sympathise. Had she nothing creditors may well have accepted an IVA from her benefits.
The DMP option seems to have been the only option available to her and creditors did not play fair as they knew she had assets. I can understand her anger especially when she sees her debts being sold for pennies to companies that then try and take her house. She was not given the option of buying these debts from her creditors and ultimately she has lost her home.
She could try and obtain settlement figures from the remaining creditors which may allow her to retain some of the sale proceeds and if she is unwilling to deal with these creditors there are companies out there who will negotiate full and final settlements for those for whom an IVA is not an option.
Michael Peoples wrote:
The benefits issue is a red herring. Ladyc has sufficient equity to repay her creditors in full so does not qualify for an IVA. It is a shame that because she has worked and built up assets that these have been lost and I do sympathise. Had she nothing creditors may well have accepted an IVA from her benefits.
The DMP option seems to have been the only option available to her and creditors did not play fair as they knew she had assets. I can understand her anger especially when she sees her debts being sold for pennies to companies that then try and take her house. She was not given the option of buying these debts from her creditors and ultimately she has lost her home.
She could try and obtain settlement figures from the remaining creditors which may allow her to retain some of the sale proceeds and if she is unwilling to deal with these creditors there are companies out there who will negotiate full and final settlements for those for whom an IVA is not an option.
thought it was a little fishy!![;)]
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
andydavie wrote:
Hi
My own view is that an IVA should be open to all, even if the income is just from benefits. Creditors lend on this basis so why should they not accept a debt solution on the same basis ?
Regards
Benefits are always an emotive issue - but I have to agree with Andy for the reasons he has given.
I just wanted to say, we have had people on benefits here who have gone into an IVA without being given the full facts or advice on other solutions. Many have been 'scared off' BR and have tried to struggle on with what very little DI they have paying over to the IVA almost too scared to eat. I remember one case where the gentleman concerned was posting his feelings of suicide, as he felt trapped and responsible for putting his family(particularly his wife) under such strain. Eventually he did opt for Br I think and it was a huge release for him. I actually respect the companies who are unwilling to take on people on benefits, is very unlikely that they will have massive amounts of DI but I guess their situation will change. I am sure that the cases that Melanie and Size 5 have were very carefully considered, with the best interests of the clients. Sadly not all IVA companies are that caring.
Lady c, sorry youre feeling so fed up and tired of your situation. Sometimes you do have to lose everything and start again. Once the creditors and the pressure is behind you its amazing how valuable having nothing can be. I am not judging you here, I am simply speaking from experience. Looking back with anger isnt going to get you moving forward with this, sometimes its best to cut your losses and move on. I doubt that you will ever win an argument against creditors, they dont care. If you have money, whatever the circumstances of how you got it, they will want it.
There will be a new life out there for you I am sure. Good luck with that.
Last edited by freelili on Wed Aug 12, 2009 2:30 pm, edited 1 time in total.
Thanks Lily.
I never took out credit while on benefits. I was in a well paid job when I was struck down with an illness that meant I could no longer work.
I have never been a bad payer and I am too ashamed of my situation to tell my children the truth. They think I'm moving into rented accomodation while I look around for another property to buy.
I just can't believe how some of these companies treat you when things turn sour.
I feel I had no choice to pay the creditors that took me to court because the judge doubled the payments, which I wouldn't be able to meet. Thankfully my sister, who I could confide in, helped me out and I feel I owe her to repay her first. She isn't just a creditor, she's my sister. Without her I would have been sunk.
I intend to offer 40% of what I owe now, after paying substantial amounts to all creditors in the DMP which amounts to thousands of pounds.
I am not going to tell them I have moved and that I have the money from my property.If this is considered unacceptable then so be it.
There is only a certain acceptable price to pay for being in debt through no fault of your own and I feel I've paid my dues in blood and tears.
If I was to take out an IVA tomorrow, I would be paying back a further 50% over 5 years.I just don't feel I can go down that route now if they'd have me.
I can't face it now, I just want it to end.
Last edited by ladyc on Wed Aug 12, 2009 5:18 pm, edited 1 time in total.
I do understand your situation, I was in a well paid job also and now I cant work and I am off long term sick for the time being. I have also been judged very harshly for simply being unable to work and its not nice. I have also lost a great deal in order to be debt free.
All I can say hun is this.
You need to free yourself of this nightmare, if that means paying over everything in a lump sum then so be it. Your sister could be included in that. Its the means to the end of this for you. I cant tell you what it feels like to be free of it. Its worth more than anything hun. You need this for yourself and youre only going to be trully happy when youre being honest to yourself as well as others.
I did tell my family of my situation, it was their choice if they wanted to pass judgement but most of them realised I was trying to sort it out and wanted to help. Even though I was still in mire street, I felt so much better for being honest with everyone.
Everyones circumstances are different, the creditors dont care, even after they have ripped the shirt off your back, they want to pick the flesh from the bones.
I understand that youre tired and feel judged, I dont think anyone is judging you, its just that you are tired and cant see or think clearly.
Every problem has a tailor made solution, the problem is its just not the tailor made solution we fancy and think, stuff you, I am not doing that. I felt like that myself at times. I was made to realise that I was making so much harder for myself by pulling the other way, it would have went on longer and I am sure I wouldnt be as happy as I am right now.
Thing is hun, only you have the power to end it. And I for one hope, for the sake of your health, peace of mind and so that you can really begin to look to the future, will do that very soon.
Thanks Lily I'll bare what you've said in mind.
I'm trying to pack up to move and sort everything out as well as dealing with these creditors.It's all getting too much.
I went to stay with family for a break the other week and came home feeling more refreshed, only to find my answer phone full of messages and many more logged calls all from creditors.
I am tired of it all.
I'll let you know how I get on.
Last edited by ladyc on Wed Aug 12, 2009 7:39 pm, edited 1 time in total.
OK guys - I've been out in meetings all day and there seems to have been a fair bit of editing going on here. So given the apology made to me by LadyC - for what I am not quite sure which may already be on the cutting room floor - I'll summarise my thoughts:-
1 Anyone on benefits can propose an IVA - and no professional would have told you otherwise. You may have been told that the IVA could not be based on the IVA protocol, but if you have disposable income the right to propose an IVA is yours.
2 You would, however, have been told that an IVA was not suitable for you as you clearly have assets in excess of your liabilities. By selling your house and realising money from the sale, you are choosing to not want to pay your creditors. I am not judging you on that attitude, and it is possible that you would need to retain some of that money into the future to assist with your ongoing living needs. Fair enough
3 I am sure that you will be able to obtain settlement figures from your creditors im order to discharge the liabilities - no doubt by short payment. No professional would condone the preferring of a family member, if you choose to do so again that is your choice.
This forum often debates may issues which are sensitive and where differing views are shared. As one of the insolvency professionals who is currently posting on the forum, let me explain my position.
I am very happy to share my knowledge and experience with you all - at any time of the day, whether you want to make it public or e-mail me privately. I give up vast amounts of my own personal time, and get great benefits from sharing this fantastic website with all of you - and I continue to learn new things on a daily basis.
But when it comes to professional advice - this is exactly what I am going to give, and I make no apologies if these are not the answers posters want to hear but there is no other way for me to post. I trust that this is understood and respected moving forward.
Last edited by MelanieGiles on Wed Aug 12, 2009 11:06 pm, edited 1 time in total.
