How long have IVA's been in existance?

[scooby0]

Hi
Out of interest I was just wondering how long IVA's have been around and who decided what the criteria was for expenditure and allowances?

I've thought of this as I was reading the post regarding reasonable expenditure...

Are there guidelines that all IP's have to follow for individual expenditure and is this in writing anywhere or is it just purely something that each IP decides on an "individual" basis?

I ask this as there seems to be differing opinions, not just for debt consolidation, but for example, child tax credits, on how much should be input for essentials such as groceries, electricity, gas etc.
As an IVA is introduced by government and child tax credits has been introduced by the government, together with other schemes, wouldn't it be better if all government applications were singing off the same song sheet for the expenditures?

I know each and every person have different needs but if there are guidelines set out for companies to follow then surely the outcome for each would be based fairly? Or is an IVA such a complex operation that a guideline would make it too difficult to produce and this would stop many being accepted? [?]

regards to all..

[MelanieGiles]

Hi Scooby and welcome to the forum

IVAs were introduced into the UK in 1986 and were initially targeted at sole-traders, professionals and company directors as a positive alternative to bankruptcy proceedings. Over recent years we have seen more and more consumer debtors relying upon the procedure as a method of offering a debt repayment plan to their creditors.

As you can see from the earlier post, there are now guidelines which have been introduced by the Consumer Credit Counselling Service which are now relied upon by most creditors. IP's should never have decided on what expenditure to present for their clients, that is for the client to justify and creditors to agree upon.

It would be interesting to get a copy of the allowances used for the calulation of other benefits such as tax credits. Do you know where these can be found?

[bigpete]

Up here in Scotland we don't have IVA's, we have The Scottish Trust Deed (bit like an IVA) and has a long history, Sir Walter Scott, born in 1771 perhaps Scotland's most famous 'bankrupt', signed a trust deed for his creditors. His sense of obligation for his debts was so strong that he repaid the whole amount he was due, although it took him many years.

[scooby0]

Hello Melanie

Thanks for response.. In today's financial climate I think there are going to be more and more people seeking the assistance of IVA's..

In answer to your question about where to find calculation of other benefits I'm sorry I don't.

I think your answer regarding "IP's should never have decided on what expenditure to present for their clients, that is for the client to justify and creditors to agree upon" has answered my question that there isn't a generalised basis for this, as an IVA is simply that - and Individual Voluntary Arrangement..and everyone is an individual case. Have I understood your answer correctly?..it is late and I do have (dare I say) blonde moments [:)] (o dear have I opened a can of worms with the blonde comment [:I][:)]

Would it make your job and other IP's harder if there were strict guidelines for expenditure?
If there were I think, and this is just my personal opinion, that it would make it a lot harder for IVA's to be approved and that disposable income would be a lot less therefore an IVA would not a viable option for a lot of people?

regards
scooby0

[MelanieGiles]

There are now guidelines which have to be followed by IPs and their clients with regard to expenditure allowances. I do not feel that the existence of such allowances aids the position of the IP at all, in fact I rather suspect that it will create more work in the long run as clients will struggle to maintain their repayments.

Time will however tell, and I am very happy to be proven wrong on this point if creditors receive the returns that were originally anticipated.

Don't worry about the blonde comments - I am a dark brown by birth, blondish by courtesy of Toni and Guy, and grateful that I do not have to live by a £5 per month hairdressing budget which is now enforced upon my clients!

[scooby0]

Hi BigPete

my word, hasn't debt been around for a fair few years.

I think that we all want to repay our debts and would like companies to be more forgiving to us all and allow us to repay them as our expenditures will allow..

There are so many genuine reasons why we have got ourselves into debt, and it is so easy to bury your head before you bite the bullet and admit that the debt has to be dealt with..but it is scary when you start making the calls as you only need one really negative response from one of your creditors, who make you feel the lowest of the low, (and how dare they make you feel this way, don't they realise how hard it has been to make that call?) and you feel that other companies will treat you the same so what is the point? And you bury your head again, still trying to rob peter to pay paul and you get further and further into more debt.

For myself personally an IVA has been a godsend and I am awaiting a 2nd (long story) approval full and final meeting on the 2nd May but I feel for people who are just starting out on their road to a debt free life...good luck to all who are just starting [:D]

[MelanieGiles]

The first bankruptcy laws were instigated by Henry Vlll in 1571, but we can trace debt solutions back to Roman times in this country!

[scooby0]

wow Mel that far back?..who would adam and eve it?? does it go back that far I wonder?? lol..

regards
[:D]

[sillymoo]

i wonder if junk mail goes back that far too

[Beans on Toast]

MAXIMUS RECOVERUS [:D]

[OPTIMIST12]

I think sillymoo's Avatar is fantastic!! Not quite sure what all the jumping creatures are exactly (cats??) but they are certainly full of energy!! Wish I had as much myself!!

Brilliant Avatar. Makes me smile every time I see it.