I have changed my mind about setting up an IVA. Am I free to cancel and get my money back ?

[MelanieGiles]

I am not sure why you have been making monthly IVA payments to your creditors if the IVA is not already set up, but you should be able to get these returned if you decide not to proceed.

[Natalie.ks]

Thank you for everyones replies.

Would it be unwise of my to try and take on my debts myself? Should I go with the IVA? I don't really know what to do. I don't think a DRO would work for me as I have slightly more than £50 a month left after everything is paid.

[Shining]

I personally think you probably need to speak to another couple of companies that will explain the IVA to you in detail before going ahead. Some people arrange things with a creditor themselves, others have DMP's that are managed there is no right or wrong. I have no regrets re my IVA but do feel it might be a way forward to chat to a couple more professionals before making any decision about all debt solutions.

[Kelly O]

I agree that you should seek further advice to see if you qualify for a DRO and if you do not discuss your other options.

A DRO is a one off payment of £90 and unless you have a change in circumstances in 12 months the debts are written off.

[MelanieGiles]

Natalie - how have you managed to pay £700 to the IP firm, if your disposable income is only slightly higher than £50? How much did they calculate your monthly disposable income at?

[Natalie.ks]

Hi, I never said my disposable income is only slightly higher than £50, a Dro is just something someone mentioned here...I have paid them £140 a month since August and my creditors meeting hasnt even been set up yet, this is due to my documents apparently not being received and then me taking a while to resend them. I can just about afford 140 a month...my issue with the IVA is where it states that if I do any overtime I will have to pay them more...

[Foggy]

Hi Natalie -- the overtime thing is standard as the point of an IVA is to pay back as much as you can reasonably afford -- so, if you earn more, you pay more ( as you probably would with the debts at the moment). At least you get to keep half of any extra

[MelanieGiles]

I still don't understand why Natalie has paid payments on account to her IP since August? Has any of this money been distributed to your creditors Natalie, and how was it intended that this be shown in the IVA proposal?

[Natalie.ks]

As far as I am aware, none of it has gone to my creditors yet. When I asked about it before (id only made a few payments then) they said that it would just sit on my account and that once everything was agreed at the creditors meeting they would make my first payment. I really am wondering if I should just ask for my money back and contact my creditors myself.

[MelanieGiles]

I just don't understand how this money is being treated. What do they mean by "just sit on your account"? This is at a time when you are not servicing your creditors in any way, and is presumably acting to their detriment as well as your own. I think it is time to make some decisions as to whether an IVA is the right solution for you - it would seem it might be from the facts you have shared with us here - but importantly whether you have chosen the right firm to represent you.

[UpToMyNeckInIt]

Hi Natalie,

I am afraid there is no easy way out of debt.

In addition to the excellent information here, it might be worth a look at the following website for a jargon-free comparison of all your options.

http:// xxxx

As for getting your money back, I do not know what to advise: It will depend what you signed-up for. Whilst there are some reputable IVA companies (some of whom post here), there are I suspect, plenty of unscrupulous firms (eg: the 'up-front fee-chargers'). So you may find that you have already paid for an 'IVA-packaging' or 'administration' service and not be entitled to a refund.

Based on the information provided (eg: you have little in the way of assets, but cannot qualify for a DRO), then really, your only options are a lengthy DMP (which you have tried already), negotiating directly with your creditors (good luck with that!), an IVA, or bankruptcy.

In your case, if you are thinking of insolvency, then BR might be worth looking into.

Good luck.

[size5]

Hi,

As a DRO uses as a base the Common Financial Statement, it is by no means a given that a suggested contribution level into an IVA of higher than the "less than £50" figure used for DRO's actually means that a DRO is not an appropriate solution.

As regular viewers, posters and contributors etc will doubtless be aware from this and other forums, there is a world of difference between the CFS and the guidelines widely used for IVA proposals, issued by Stepchange. Whilst I wouldn't want to open that particular can of worms again, it has been debated to death here and elsewhere, I would most definitely suggest that the OP talk to as many people as necessary to get a good idea of ALL options.

A DRO may NOT be suitable, but then again an IVA might not be suitable either. There certainly seem to be some issues here regarding payments taken in advance, as well as possible issues with the original estimate of affordability.

Regards.

[MelanieGiles]

The website link used by Uptomyneckinit provides some very poor comment about the use of IVAs and DMPs. May I ask what led you to that site, as I think it is inappropriate to be promoting given its clearly very baised views about the commercial debt management sector.

[UpToMyNeckInIt]

Melanie,

Yes, I have to agree that there is a whiff of anti-IVA bias, but in my opinion, the site otherwise does predominantly give some good jargon-free comparisons of the various solutions in lay-person terms - hence why I suggested it as a point of reference.

But to be honest, in my experience, there is no such thing as an un-biased opinion on the subject of IVA's (please point me in the direction of some genuinely impartial IVA advice - I will gladly point others in the same direction).

The 'Charity' organisations are funded by the banks, and anecdotally, I have heard that they, and even some CAB offices, refer potential IVA customers directly to GT half the time anyway.

The IVA advice on another popular money saving expert site is dreadfully anti-IVA, and completely out of date.

Interesting that the person who runs the Debt Camel site appears to be a CAB Advisor - one of the reasons I did not feel there would be an issue suggesting referencing this site. (I know a CAB branch occasionally posts here - maybe they can verify this?).

All of the above naturally claim to be impartial.

So what is a potential customer to do? Are you advising that they go instead directly to an Insolvency Practitioner? Are you telling me that everyone in your profession is as open and transparent as you?

Sadly from my viewpoint, as this and other forums attest, this is appears not to be the case. There are clearly loads of IVA customers struggling with something that was ill-advised, possibly mis-sold, and the fact that nationally 35% or so of IVA's fail has to tell you something.

The sad truth is that in any profession, the desire to make money, (and I inherently have no problem with that), will lead some 'sales people' in some IVA firms to suggest an IVA when it may not be the best solution - particularly those whose wages are 'commission' or 'perk' based in any way.

Personally, I am satisfied that the IVA was the way to go for me. But before making that decision, I researched all my options, spoke to the CAB, the charities, as well as an IVA company (who sold the socks off the IVA to me by the way - not that they needed to by that point).

I merely suggest the OP does likewise before jumping into another debt management solution which they are unhappy with.

[MelanieGiles]

I think that the headline "Don't take IVA advice advice from commercial firms!" probably highlights the naivety of this site. Where on earth do they think you are going to get an IVA from, other than a commercial firm! I could go on, as I find many inaccuracies through the site.

If you feel that organisations like mine are incapable of providing unbiased advice - a view I personally would find very hard to stomach - then I suggest you direct posters to the Insolvency Service website. I am sure that no-one could accuse that of being unbiased in any shape or form.

I'd be interested if you reviewed my website - www.pjgrecovery.com and let me know if you feel that that is baised. Consumer views are very valuable for me, and we are always keen to know how we appear to the naked eye so to speak.

Yes - I am advising people to seek advice from an insolvency practitioner - and I mean directly from an insolvency practitioner rather than the sales team. Are you able to share with us which option you plumped for when researching your own case, and which firm you actually chose - also the pointers that put that firm ahead of the rest.

As I don't think you are one of my clients, hopefully I can avoid any sniff of being unbiased.