I was offered a 'quick fix'

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lara

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Post by lara » Fri Feb 09, 2007 6:21 pm
How much does an IVA cost?
I was offered a 'quick fix' one where if I could get 18,000k together the adviser said he could get my 40,000k debt written off in 6 months. This didnt make sense and scared me off. I want to be debt free but who do you trust?
 
 

gizmo

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Post by gizmo » Fri Feb 09, 2007 6:45 pm
Lara
You must speak to several different companies - can I recommend www.thomascharles.com. They will advise you fully - I'm not so sure about the 6 months timescale that has been given to you - in usual circumstances it shouldn't take so long for an IVA proposal to be put to your creditors - I'm sure one of the exprts will be able to comment further on this in due course.
 
 

finebridge

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Post by finebridge » Fri Feb 09, 2007 7:58 pm
Hi Lara

The total cost of an IVA is dependent upon the complexity of the case and the length of time the Arrangement runs for. I would imagine charges will vary from company to company, so it's a good idea to speak to a few before you commit to anybody.

I have seen £5,000 quoted as a general benchmark for a lump sum settlement. Although you should be able to get it for less than that I also think quality of service carries some weight, so don't choose just on price, look at the whole package.

As far as timescales go, I don't see why it should take six months. If you have the funds available, you could probably get done and dusted in 6-8 weeks tops.

Kind regards
Brian Baker

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk
Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk
 
 

freelili

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Post by freelili » Fri Feb 09, 2007 8:05 pm
Hello

Just walk away from that offer, there have been some things on another forum where people have had calls from companys offering quick fix solutions, basically it means more debt. Even people on an IVA have been targeted, these companies are either using peoples credit files or the insolvency register. If you are looking for an IVA look no further than this site. It really is difficult to know who to trust but the experts on this site will help you.

Good luck

LILY
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MelanieGiles

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Post by MelanieGiles » Fri Feb 09, 2007 9:47 pm
Hi Lara

The six months period you have quoted is for the IVA to be completed and closed by, not put together within. Whilst you may be unhappy with the way the advice was given, I do not see anything wrong with that offer, providing you have a third party available to provide the funds or assets to realise to generate that sum.

Creditors do like lump sum offers, especially if you have little disposable income to offer on a monthly basis. I have been doing IVAs now for over 10 years, have done more than 1,000, and I have never had a lump sum offer turned down yet (hope I don't get to eat those words!).

My firm would charge fees in the region of £5,000 for this work, so it seems to me that the quote you have had is a little high on fees reading between the lines. Find an insolvency practitioner who has a good track record and knows the creditors very well, and this should ensure success if you decide that an IVA is for you.

Good luck and look forward to a "debt free" future.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

freelili

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Post by freelili » Fri Feb 09, 2007 10:10 pm
This does not make sense to me, sorry. I have less debt and offered slightly more than 18,000. I know it depends on what creditors you have, but why would this be different for lara, than it would be for me? I have also read that people have been cold called and offered quick fix solutions, that is what I feared might have happened here, I really do appologise if I misread the post.
Kindest regards

LILY
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Exsisto an angelus quod planto quispiam sentio melior.
 
 

MelanieGiles

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Post by MelanieGiles » Fri Feb 09, 2007 10:23 pm
Lily - you have not misread the post at all, and I understand you comparing yourself to the originator.

The difference in your case is that you have been unable to quantify your offer, as you do not yet know what your entitlement under your mother's estate actually will be. You have chosen to wiat until your mother's house is valued, when you feel that you are in a better position to make an offer, but that will need to be based upon your share of the inheritance, less the monies you want to retain for living expenses.

I think I have now advised you what I think you should do on several occasions - that is to propose an IVA now based upon your estimate of the figures which are unlikely to change dramatically. I know you have received contrary advice, and are choosing to follow that for which I respect your decision, but Lara's case is somewhat different as she has no assets - simply what I assume to be an offer of third party funding - which will provide a minimum return of at least 25p in the £ being the generally accepted bottom line - unless she has debts with HSBC or Northern Rock.

You have to appreciate that this forum cannot give absolute definitive advice for all of you on every aspect of your difficulties - as we insolvency practitioners need to see the full picture, and preferably have a face to face meeting in order to advice accordingly. I am personally not a fan of DMP's being used as a waiting game, as the reality is your debts are increasing on a daily basis due to the interest which will undoubtedly be charged when final claims are eventually submitted in your IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

freelili

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Post by freelili » Fri Feb 09, 2007 11:07 pm
I appreciate all the advice you have given to me, I do not know what my position is yet. I appreciate all the help I have had from this forum, from everyone. I feel lost and really alone right now, I just want to make an informed choice when I know what my position is. Everything I have tried to do to address my debt, something has changed to make it impossible. I had to do something and a DMP was my only option at the time. It would be so much easier if I had just been given the money, I would be right there with you waiting for a creditors meeting. I have tried so hard just to see it all simple black and white terms, but I just cant. My mother is dead, she was a supportive mom. I have to come to terms with that. I do not expect anyone to understand my personal, individual, circumstances, and I cannot be expected to understand your 20 years experience in less than 2 months, which is made more difficult by conflicting advice. So many people here have been badly advised by other companies and are heading for BR,its a really confusing world to averge people like me. I necer meant the post as a pop at anyone, I just didnt understand the figures. I respect your position and the knowledge that I have gained from being a member of this forum. I wish everyone the very best of luck.

With kind regards

LILY
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DebtDummy

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Post by DebtDummy » Sat Feb 10, 2007 1:17 pm
Lilly, you are so right! No, one here will ever understand your personal circumstances. Feelings around debt is an individual reaction. And you were also correct in stating there is a lot of poor advice out there regarding how to manage one's debt problems.

Interesting, your lovely mother passed away unexpectedly. My father passed away in the late 1990's; and I was devasted. He was a good decent man. Never in debt. Paid his mortgage off. Paid bills on time and raised his children to do the same. So, here I am today petitioning for a BR. All I have been thinking is, ''My father must be rolling in his urn over this!''

What has kept me sane is thinking about the differences between his
society and our society today. They could not go into debt as we did today. Either the income was not high enough or the debt culture mentality was non-existant. The buy now pay later schemes did not exist. They did not have IVAs and BR was a mortal sin. So, people tended to be frugal and go without until they could save for what they needed. Notice the word 'need'.

Today, our wants have become needs. Credit is widely available to give us instant access to our wants. Our incomes are higher, so we can be lent more. To own a home 4,5,even 6 times your salary is often required to obtain a mortgage. Not in my parent's day. They bought homes based on what they could afford; and it was based on the man's salary.

So, what does all of this have to do with this topic? Probably nothing, then maybe something for all of us in debt to consider. For me I had to accept, I made the debt, I have to pay the debt. My father may not be pleased if he was alive today, but at the end of the day it's MY life and I have to make the best decisions for MY family just as he did for HIS family.

Same with YOU. You have to make the best decisions for YOU and YOUR family even though your mother may have disapproved. It's life isn't it, Lilly (sigh). And we just have to muddle through it the best way we can;and hope and pray that the mud does not stick weighing down our spirits and emotions. Our parents didn't have crystal balls to view our futures. They did the best they could with what they had for us just as we tried to do for our children. I do believe they(your mother, my father) will rest peacefully with that fact.

So, my sister in debt, continue to make those choices that benefit you and yours because...who else will?

I shall leave you with a joke to add some cheer to your day.Q: Why did the penguin refuse a BR? Drumroll please! A: He didn't want his 'ass'ets frozen.





All I have left is my humour. :)
All I have left is my humour. :)

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.
 
 

freelili

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Post by freelili » Sat Feb 10, 2007 2:50 pm
Thank you DD and bless you, I will find a way that feels right to me, Its a mad mad mad world, of do's and dont's. numbers and nothings, living and exsisting. yes and no. brain scrambling IVA's. Do I Dont I, will I wont I. Rule with ya head and not ys heart ah. I think I love you.

LILY
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Skippy

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Post by Skippy » Sat Feb 10, 2007 3:01 pm
Only you know what is right for you Lily, and you will make the right decision - the same as you DD, and hopefully me. We will all make mistakes on the way - we wouldn't be on this forum if we didn't! However, I believe the mistakes are what helps us do the right thing eventually - that probably doesn't make sense, but I know what I mean!

Your mum Lily, and your dad and mine DD are up there looking down on us, and yes, they know we have made mistakes, but I'm sure they are proud that we are trying to put it right.

Onwards and upwards!!!
 
 

freelili

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Post by freelili » Sat Feb 10, 2007 3:19 pm
Yes I know skippy, I just had a bad day yesterday. My mom knew all about it and would have given me the money when she was alive, she offered, I refused, my debt, my problem right. I was only trying to help the girl that posted, 6 months for an IVA? Quick fix,just sounded dodgey, to me. the figures did'nt add up to me. But I stand corrected. Anyway, my mom went a little extreme to help me, didnt she and I just want to do the right thing by her, thats the most important thing for me. I know I will be out of debt. Thanks for your replies, I really needed it and good luck with your BR and DD too.
Loads of love

LILY
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I asked God for an answer, I have to live with his reply.
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Dominic

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Post by Dominic » Sun Feb 11, 2007 12:01 pm
i would walk form this now, this sounds too good tobe true and I feel 100% certain it si too good to be true.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Feb 11, 2007 1:44 pm
Perhaps the words "quick fix" have been badly used, but there is nothing wrong in principle with what this person has been advised.

I very regularly put together IVA's for persons whose relatives are raising money to offer the minimum dividend to creditors - and yes these types of case really can be closed down and finished within 6 months.

It may sound too good to be true - but true is is, the legislation fully allows for it and creditors rarely turn them down as they get their money a lot earlier than via monthly contributions.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
 
 

freelili

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Post by freelili » Sun Feb 11, 2007 2:27 pm
I would just like to add something, make sure that you talk to two or three companies before going ahead, if it is a lump sum proposal. The company should be aware of everything, particularly the creditors that you have, I say this simply because if I didnt have HSBC as my main creditor, it would be a lot cheaper to propose. I really hope this helps.

I have had a couple of cold calls myself offering 'quick fix', they say everything you want to hear and seem to know a lot about my debt, then try to suck you in to more debt if this is the case,,,walk away.
Good luck

LILY
Last edited by freelili on Sun Feb 11, 2007 2:34 pm, edited 1 time in total.
LILY

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I asked God for an answer, I have to live with his reply.
Exsisto an angelus quod planto quispiam sentio melior.
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