Catallus - In an attempt to answer your last question!!
I personally still meet approximately 50% of my own clients - and a face to face meeting is always offered and encouraged. For those clients who choose not to take time out to make the trip, a telephone interview is always conducted and these can often take longer than the face to face meetings. I am sure you do the same in your own practice.
I then issue clients with detailed notes of the meeting(s), as often there is more than one in the process of putting together an IVA, and these cover such important issues such as the decisions made in choosing an IVA over other options, equity release, 50% uplift provisionjs, timing of reviews, default provisions, risks from difficult creditors and anything else of note. I know that clients actually read these, as they often call to have things explained further. Whilst this is a requirement of SIP 3, I am alarmed to note that a lot of IPs still seem to be not issing meeting notes and getting clients to sign them.
Putting myself into the shoes of an IVA client, I can equate to three things which have happened to me recently, which are unusual to my normal sphere of operation, and in which I have little knowledge or experience:-
1 Taking out critical illness insurance
2 Concluding a shareholders agreement within my company
3 Dealing with my dog's mystery illness
For all three occurances, I needed to use a professional - financial advisor, lawyer and vet. For the first two, i tended to rely upon what I was being told/sold, but did take the documents away to read through thoroughly in my own time. The shareholders agreement took 3 trips to the solicitor before I understood some of the terms, but in the end was signed once things had been properly discussed and explained.
My little dog's illness, however, was by far the most worrying and important, as this affected us personally more than the other two. We had three differing opinions from the vet, and because of her age did not know whether to allow them to operate or just let her live our her days as peacefully as possible. Although this sounds daft now, the stress and worry was incredible - my hubby and I could not agree, the vets opinions differed, I tried to find every web-site I could to try and find my own answers, and in the end we made a decision partly based upon professional advice and partly based upon our gut feeling.
This story has a happy ending, as my little Yorkie is fighting fit after having a major operation - which incidentally discovered something fairly minor that none of the vets had suspected. Just glad that it all went OK.
I equate this experience to that of our own clients - and in order to ensure that our clients understand, all we can do is ask them and ensure that we give them as much information and advice as we can, bearing in mind the stressful circumstances they are operating under. Some clients will always believe what they choose to believe, or simply forget some of the things that we deem to be important.
I personally do not believe that IVA's are generally mis-sold - there may be some argument for this happening in the past. But there are definate misunderstandings, and as we know this as professionals I suspect that we are even more careful to highlight those issues which tend to have a habit of biting - such as equity release in the final year.
Gosh what a ramble, but really an attempt to put myself in clients shoes and understand that not everyone will understand everything at first.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
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