future

[RBS]

hello everyone
i would be very appreciate if you can help me with my questions: i have quite large debt struggling to make payments from last fews months, planning for IVA, sametime i am bit worried of my future, i am a agraduate in finance, studing Cemap now i am thinking to work for myself , my ques. are:
1, Does IVA affects by job in finance.
2, Can I register a Company for myself while i am on IVA???

thank you,

[MelanieGiles]

Hi RBS and welcome to the forum

1 An IVA should not affect your job or CEMAP qualifications, but you ought to check with the FSA and your terms and conditions of employement to be sure.

2 If you are wondering can you incorporate a Limited Company whilst in an IVA - then the answer is yes.

Good luck with your search for the right solution - and your future career in finance.

[RBS]

Thank you,melanie, that means i can change the job whilst in IVA??

[liberta]

You should be able to change jobs but the Supervisor of your IVA (your IP) will want to ensure that this will not affect the payments to your arrangement.

For example, your Supervisor would not want to return to your creditors to ask them to accept reduced payments because you had taken a less well paid job. Unless of course there was a convincing argument as to why you had made such a move.

The same could be said if you were planning to start up in business for yourself. You would need to have put together a strong business plan. Even though this may show a reduced income to start with, if over the period of your arrangement, your creditors will be better off as payments to your arrangement will increase again once you are trading, then there should not be a problem.

[MelanieGiles]

It is also about life's priorities - and sometimes the offer of a lower paid job can spell greater long term success - so please don't put your life on hold just because you are repaying a few debts. That is important, but should not dominate the career decisions you made over the next five years.

[Adam Davies]

Hi
Very well said Melanie
Regards

[David Mond]

Before entering into an IVA - if that is the appropriate advice that has been given to you - by the way have you discussed your financial affairs with an IP? - What must go into the equation is your income possibilities over the life of an IVA and whether changing jobs or setting up as a self employed advisor in finance will produce sufficient income to enable your promise to creditors being fulfilled - that is if you do enter into an IVA - I am all for bettering ones self - but sometimes responsibilities to your crediors is just as important matter and sometimes putting career moves on hold might be a good thing especially as you are seeking a future life in finance! Melanie and I have differing opinions here but in the end it must be your decision. Good luck.

[Andrew Graveson]

Hi RBS,

If you're studying Cemap and thinking of working for yourself do you intend to work as a mortgage broker?

If so have you obtained a consumer credit licence yet?

[RBS]

yes i am thinking to work as a mortgage broker. no i have not, as i have not completed it.

[go_4_broke]

I was just looking at the Consumer Credit requirements for debt counselling/adjustment.

It seems the OFT now see this as a 'high risk' activity and require the submission of a 'Credit Competence Plan' which seems quite onerous.

Wonder if anyone has done one of these ?

[David Mond]

The old days of paying seven shillings and six pence for a dog license have gone. That is what it used to be like and anyone could get a CCL. Not anymore and thankfully there are more stringent rules and regulations. That is why the Debt Resolution Forum was founded for and 40% approx of the Debt Resolution Industry are members and over the past 3 weeks another 6 or 7 of the bigger players have joined. What with the possibility of Regulation of Debt Management Plans by the Ministry of Justice in 2011 standards are beginning to move forward in this area.

[go_4_broke]

Well, yes and with the debt 'industry' having more than it's fair share of cowboy outfits fair enough I guess.

[Andrew Graveson]

Hi RBS,

A couple of challenges to think about:

1 - You'll need to work for a "competent person" in a mortgage firm for a period of time before you are signed off as "competent" by that person. You will not be able to have your own firm until you're signed off as "competent".

2 - Firms may have rules about whether they will contract an advisor who is in an IVA. If you have a firm in mind you might want to ask them about their attitude to this.

3 - Many firms will want you to be self-employed rather than employed. You'll need a consumer credit licence to do this. You might want to contact the Office of Fair trading to ask how they'd view an application from you while in an IVA.

Not insurmountable problems but will need to be dealt with. Good luck with Cemap - I remember it fondly!

[Andrew Graveson]

Hello go_4_broke,

I've recently been involved in the first "credit competence plan" submission in our part of the world for a new project. Thankfully it has also proven to be the first succesful plan submission locally as well.

It involved a site visit and extended interview/report by local Trading Standards Officers. They spent three hours with us and then reported back to the Office of Fair Trading. Demonstrating "competence" meant the actual evidencing (documentary) of competence in every area covered by the original CCL application.

It's actually not onerous at all if the competence is in place already. Where competence doesn't exist the new regime should serve as a deterrent and barricade for those who previously entered this industry too easily.

As for the "cowboys" who are here already....they have anything up to five years left on their CCL's before they have to submit to the new regime and get re-licenced.

[go_4_broke]

Thanks for that Andrew - very interesting - and Congratulations !