IVA is a watered down bankruptcy ??

[Ash4]

I have an existing IVA for 1yr so far with 4 yrs to go, a company has contacted me saying that they got my name and address from the insolvency register, I did not know that an IVA is a watered down bankruptcy, and means the same to creditors, I was not told when I took out the IVA that I would be placed on the insolvency register. I did not know that an IVA was protection for creditors, and not protection for me debtor, all the monies paid so far for 14mths of the IVA has been fees to the company, and nil has gone to my creditors, the company that has contacted me want me to stop the IVA and file for bankruptcy as I have no assets and am a tenant, they say that my debts will be cleared in 12 to 15 mths time, their fee is £1700 to do the work, what should I do?

[langerbridge]

Keep with the IVA. Do not listen to these ........ (feel free to place a suitable word here!). An IVA is better for a lot of people than BR. If you are struggling speak to your IP. Yes most of first year is fees but the IVA will for most of us write a significant amount of debt off.

[mattyboy]

There are much more severe consequences to bankruptcy than an IVA. these companies are praying on people in a vulnerable position. They basically want £1700 from you and would be prepared to make false promises to get it.'if you need advice consult with your IP. They wouldnt have recommended an IVA if it wasn't the best option for you.

[Foggy]

Ask yourself how this company know these things they are telling you. All they know is your name and address. They are also talking out of that place where the sun don't shine !

[Broke of London]

Hi Ash4 - these people are scum. If you want to go BR, you can do this for £700 without their help. Did they tell you that? If not, it just shows exactly how interested in your financial welfare they are!!

[kallis3]

Hi and welcome.

Do not touch this company with a ten foot barge pole! They are just trying to get you to part with more money for something you can do yourself if you have to. On top of their fee you would have to pay court costs of £700. Your BR would last for twelve months, you will probably have an order to pay over any disposable income for three years and your credit rating will be shot for a further six years.

Your IVA protects you - not the creditors! They are quite happy to take a smaller amount of money.

If you are struggling then please speak to your IP in the first instance. If not then I strongly urge you to carry on with your IVA.

[ginger3232]

Ash4 - would you be prepared to name the company on here - as this can help other people in the IVA situation. By google searching the name of the company ofter it will throw up previous consumer concerns etc.

It may just help someone - to make an informed choice about that company

[kallis3]

I quite agree Ginger - we need to know who these companies are.

[back on track]

tell em to take a running jump of a long winged plane preferably the shuttle.
they are less likely to know your situation than i am.
b***** incompetant idiots
tell us ash who they are bet i can guess

[kallis3]

[:D]

Shuttle's no good anymore - have to be a jumbo jet!

[kazzafunk]

Now I am on the register I can't wait for these calls or letters to arrive..bring it on !![:D]

[Adam Davies]

Hi
What they will not tell you is that you will end up paying the same, if not more, into your bankruptcy for a three year period. An IVA is protection for you, there are no further interest or charges added and creditors can't take any legal action.
Bankruptcy may be a better option for you but you do not need to pay £1700 to go down this route.
Regards

[MelanieGiles]

If you feel that bankruptcy is now a better option for you, and that this was not advised to you properly as a solution when you entered into your IVA, then this may well be a sensible path for you to travel along - but charging someone for drawing that to their attention and filling out a few forms of £1,700 cannot be justified. Very simple to do on-line, and a quick trip to the Court. It will cost you around £700 in statutory and Court fees however, so you will need to think how you fund this.

Wasn't a key driver in your original decision making process the fact that you wanted to pay something back to your creditors over a realistic timescale? If so, bankruptcy is unlikely to provide anything like the return to creditors that you will effect if the IVA runs its full course.

[plasticdaft]

Googling iva will provide lots of info on what one is so nobody should enter an iva blindly!

Paul

[Ash4]

[:D][^]Thank you all very much for your sound advice.
I phoned the company this morning, and said that I will not be going ahead any further, as I have researched all the relevant information, and their option of bankruptcy is not the right option or advice for me in my current situation, I had seen earlier the replies to my question, and that you are all against the option of bankruptcy over an IVA, and took your sound advice, so I have decided with all your help on this forum to stick with my existing IVA arrangement, I can see it through as I am fully employed, although I still feel the loss of £170.00 a month paying back a debt of £20.145 for another 4yrs, on a monthly salary of £1,017.00, that is without all of my other out goings, although daunting I will prevail, as I feel that with the useful supplied information you have given me, I will have made the right decision, and achieved a better result with an IVA rather than filing for bankruptcy with all its woes, as for naming the company that sent the letter which started all of this off, and in reply to Ginger3232, the company to watch out for the is, IVA DEBTLINE, Consumer Credit License No. 0438753.
Thank you all again for your responses.
all the very best ASH4