hi, i'm new here... hope everyone is doing ok. i was hoping that i could get some advice.
i am 22k in debt through 2 credit cards. i have been contemplating taking out an agreement with one of those companies that say that they can wipe your debt out due to changes in the consumer credit law 2007.
i've also considered taking out an IVA. but would i still be able to apply for IVA after i've attempted to wipe my balance (although this is a perfectly legal procedure).
really don't know what to do at the moment, i can just about make the monthly payments (never miss them) but i have very little left after that. i'm continually broke and it's getting me down a bit.
can anyone give me some advice. at the mo, it's giving me sleepless nights. i really don't know what to do...
hi abit worried and welcome.
its up to you but me personally i would avoid these wipe your debt companies-therer something about them that makes me morally uneasy but it will be for you to decide.
if you would like some advice regarding an iva have a look on www.iva.com where you can ring an ip and have a free initial chat and discuss your options. good luck if you decide to persue the other avenue and if you need any help or advice we're here
The difference between the two procedures you refer to is that one tries to dump your debt due to a legal loophole and the other one (the IVA) tries to help you repay your creditors.
In order to decide which is the best route forward, you have to decide whether you want to pay your creditors or not. I personally will have little to do with debt avoidance companies, and therefore have no knowledge of how they operate, and I do not feel able to compare that service compared to a legitimate process for assisting with managing unaffordable debt.
just thought-if youve only 2 creditors that may not be enough for an iva but i would definitely give someone a call for free and get some expert advice first good luck.
A moral dilemma. Do you after receiving the loan/credit and spent the money try and get out of re-paying because of some "unenforceable" term of the agreement? Or do you try and re-pay? It is for the debtor to decide.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I agree with Melanie that it is debt avoidance, legal or not, and I would never condone anything like this.
You can always do a debt management plan - at least then you know that you paying your debts back rather than avoiding them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I dont think we can judge people on this forum who choose to use a loophole in the law to avoid paying what they owe.
What we can do is point out that most of the companies who assist in this sort of practice are unregistered,unlicenced,and ungoverned,and many people who use their services can end up worse off.
If debt avoidance was that easy why are IVA/BR numbers on the up??
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Plus you wouldn't get all of your money back anyway as these firms will take a chunk of it as fees.
They also charge to 'audit' each credit card or loan - the one site I looked at was £495 per audit!
Stupid!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
And times will get more desperate, so as long as we can advise people not to throw good money after bad with these sort of companies (and I lump 'assisted' br companies in with that as well)then that's all we can do.
With apologies to Reviva, who I know are a reputable firm!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi all,
I might be a bit late on this topic but it really touched a nerve with me. When I go into debt, it really went against everything I believed in, while at the same time, I wanted to save my business and home. For me an IVA gave me the chance to pay back in my case 50p in the pound and keep my house and business. For me this had if you will a karma or balance to it. It really depends if taking some responsibility for your situation is important or not? Because in my experience an iva is not an easy route (for me bankruptcy would have been easier) but sorry not everything in life is easy, and really in my case that is what got me their in the first place, thinking everything was free and easy[:(]
The majority of persons in debt want to do something about their situation and pay back what they can realistically afford to pay. It is only the free loaders that look at ways to get out of their obligations by attempting to claim that they have "unenforceable contracts" and try to avoid their responsibilities. I accept if over indebted people have no disposable income and no assets then bankruptcy would be the right route for them.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I agree with David that the majority of people do want to pay back at least part of their debt, I am one of them.
However, as he points out, people with little or no income can't do that.
Similarly, if leepy continues to post on here, he will see that the number of people who are coming on after redundance, having been happily paying into their IVA's, is growing. Other circumstances also dictate that IVA's are not a viable prospect.
These people have taken responsibility, and their IVA's may fail through no fault of their own and bankruptcy may be the only option.
I really don't like the fact that leepy seems to think that people who go BR take the easy way out and don't take responsibility for their actions.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
HI kallis3,
this is the downside of the written word what I said kallis3 you misunderstood, I do not believe bankruptcy is the easy way out,but for me the truth in money terms it would have been, but my point wasI wanted to and was able to make payments to an IVA and yes I feel fortunate for that choice, that yes others do not have that option.
the money thing is not easy, and as I have posted myself, even though I am well on they way to finishing my iva, I still have the daily fear I might not make it.
My point which i did not make clear was and is, of personal responsibility, not blame, just the recognition that in my case I spent too much[:)] I know that may not be true for everyone, I let others speak for themselves on that one.
kallis3 I am sorry if i offended you but my intention was to reply to the original post which was musing the possibility of using a debt agreement.
