Like you Jan I wouldn't be 'gutted' if I knew someone who had done that, I would think of them as dishonest for getting out of their debts by what at the end of the day is lying.
And of course don't forget that all these companies don't try and get your money back for free.
They charge you, usually a fair amount of money per 'audit' as they call it.
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 think the loophole may already be closed. There seems to be a cutoff with post-2007 agreements following a change in the law. I don't know the exact date.
However that means there are still millions of agreements out there subject to the old rules.
I don't think anyone reading these posts could possibly get the impression that the forum condoned the use of this tactic!
Good, I'm glad that's the impression we are giving!
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
its an interesting debate looking at it from both points of view.
many people who enter an iva do so with a feeling of wanting to try and do the right thing by paying as much of there debt back as they can.
other would take the view that they should not have got into the debt in the first place.
there are many loopoles in the law that get exploited and if a company wanted to lend you what could equate to many thousands of pounds without covering these loopholes that is there problem.just like these same people will happily reposess a house off a family,to them its a cutthroat world out there,i have a lot of sympathy with people with genuine money problems,i ave no sympathy at all with the banking system that exploited people letting them get into dificulties,yes,all these people ad a choice not to borrow,but to be honest it did all become too easy and now everyone is paying te consequences.
Last edited by lil.me on Thu Jan 29, 2009 6:48 pm, edited 1 time in total.
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 completely agree with the advice that this is not a moral way of dealing with debt, but from an IP perspective it is a useful way of agreeing claims which are submitted at a higher level that the debtor stated on their statement of affairs.
We always obtain documentary evidence of claims prior to proposing the IVA, and then if claims are submitted at higher than 10% of the stated claim we ask for documentary evidence. If this cannot be produced, we would then insist on the debtor's figure being accepted, which creditors generally tend to do.
But even doing that, you are not asking for the debt to be written off, just the portion that is believed to be incorrect.
The debtor will still have paid into their IVA, and fulfilled their obligations.
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
