A friend who wants to go through an IVA is wanting to borrow a significant amonut of money from me to pay for the process? What are the costs involved - nature and magnitude?
Hey jdr88, welcome to the forum. You friend shouldn't need to borrow any money from you, even if she/he goes through an introducer company it will only be the amount that is agreed for the IVA payment and she/he should be able to afford this anyway as this will be the payment they make for the next 5 years. X
There are fees associated but they are usually written into the IVA and come out of the regular monthly payments
Mine was about 5K plus 1K per year roughly speaking. So when I make my payments, my IP keeps them to cover their fees until there is enough in the kitty to start dishing it out.
Some "introduction" companies charge up front, but these fees, as far as I was concerned, were the amount of the regular monthly payment, so if I wasnt able to afford them, I wouldnt have been able to afford a IVA anyway. (I did stop paying creditors and got some grief for a while)
Some people do get charged larger amounts than they would be paying in an IVA, but I think those companies are very few and far between. These companies are usually intermediaries who 'introduce' you to an IP and obviously want paying for it.
Your friend should either not be making payments to their creditors, or just token amounts, and the money he/she is not paying should be enough to cover any up front payments.
If your friend cannot afford these payments now, depending upon how much they are, then I cannot see how they can afford to pay into an IVA.
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
