DMP - IVA - BANKRUPTCY

[kallis3]

Lloyds TSB, with whom I had a credit card, froze mine straight away - strangely though, they were the only ones who voted no at my IVA meeting!

[MelanieGiles]

To the Major

For every 100 enquiries to my firm, only around 25 end up actually deciding to try for an IVA. Of the balance, around 15% don't really need any professional help at all - they may be looking for alternative finance, having problems with an existing IVA or simply asking questions about various issues. Around 30% end up in debt managment and 30% end up declaring themeselves bankrupt - occasionally asking us to help them with the paperwork which we are happy to do.

This split of options results from myself and my team making sure that clients are fully appraised of all options available to them, and then them actually exercising choice. The role of an insolvency practitioner is not, as you put it, merely to ensure the best interests of creditors. It is to give quality and independent advice on a variety of issues to consumers and corporate clients, and then respect those decisions.

My objection to the majority of bankruptcy assist companies is the method with which they obtain their information, and the manipulative way their letters and discussions are worded. Having acted in the past for around 3,000 voluntary arrangement clients, I can count on one hand those who have chosen to follow this route having taken time to make the right decision in the first place. And for my own clients who later decide that bankruptcy is a better option, or through a change of circumstances is the only option, then we help them with that process where help is required.

[The Major]

Melanie

Believe it or not I am a fan, if all companies operated as you do, I don't think there'd would be any bankruptcy Assist companies accessing the register, it would be in my opinion pointless

[Broke of London]

Only because there wouldn't be any money in it...not because your selfless crusade against poor debt advice was over! That's not to say everyone you 'help' was poorly advised or in need of your assistance as many people are swayed by misleading promotional messages.

[MelanieGiles]

And on that point we can most definately agree! The register needs to be removed from being so accessible. If firms had to pay to get the data, they would need to demontrate their business case and would maybe think twice.

One also wonders how long their shelf life is when it becomes possible to file for bankruptcy on-line. It makes my blood boil when I hear these companies justify their fees on the basis of an offer to attend Court and attend meetings with the Official Receiver, when we all know that this rarely is necessary any longer, and never really was.

[kallis3]

Quite agree Mel. The sooner this register is removed from general public view the better! I have said before that those of us who found the forum are aware of the ambulance chaser companies, but there are an awful lot more who believe what these people say and are fleeced of thousands of pounds they can't afford to have someone do something they can do themselves!

[Broke of London]

It's the companies that use tracker advertising that get me. Whenever I log into sites which allow these I am swamped with ads for bankruptcy assist and writing off ludicrous amounts of debt. At least you can bin a letter...these follow you everywhere!

[kallis3]

I totally ignore all advertising on the net.

Don't forget though that it's not all done through letters. Some people are bombarded with phone calls. As they usually come from a foreign call centre they're not illegal.