Hi
I am interviewing Martin Prigent from The Insolvency Exchange [TIX] on the 23rd September,for IVA.co.uk TV,and will be asking him about the new Debt Standard,amongst other things,that they are introducing for Debt Management Companies.
Please post any questions on here that you would like me to ask and if any of the professional experts want to email me direct with questions then that would be great.
TIX are representatives of several creditors and have almost single handedly changed the shape of both the IVA fees and acceptance criterea.
Will they be doing the same with DMPs ?
I AM CURRENTLY ON A DMP AT THE MOMENT AND ALL MY CREDITORS ARE PLAYING BALL EXCEPT ONE. I THINK THE CREDITORS SHOULD BE MORE FAIR WITH PEOPLE ON THESE PROGRAMMES AT THE END OF THE DAY WE ARE TRYING OUR BEST TO PAY THEM BACK AND THEY SHOULD REALISE THAT. I THINK THIS KIND OF DEBT SOLOUTION SHOULD HAVE SOME KIND OF REGULATION I HAVE HEARD IT MAY WELL DO BUT IF AND WHEN IT DOES WE WILL HAVE TO WAIT AND SEE.
Regulation would be very welcome especially in the assisted Br arena.
I often wonder wether the banks relaise the implications of their actions and the fallout on the ordinary person.
We have seen hurdle rates rise, and in some. cases the lengthe of IVA's increase. Some Creditors are taking the stance that if a DMP will work for 10 years then they will reject an IVA for 5 years.
If creditors push too hard then people will move away from the moral and "trying to do the right thing" standpoint and start taking an extremely commercial view.
This will mean that bankruptcies will rise. 3 years os an IPA vs 5 - 6 years IVA ( with an equity clause) vs 10 + years for a DMP.
Similarly if second charge mortgage companies were a little less aggressive about letting properties being sold at just under the mortgage advance, and perhaps even looked at erasing the early redemption penalties, then there would be significantly fewer voluntary hand backs and reposessions.
The pendulum swings and eventually it will balance out, but in the meantime some people really suffer and others get £2M in bonuses.
Paul Johns
Reviva UK
Assisted Bankruptcy Specialists www.revivauk.com
Hi
Some very good points Paul.
I often think that Joe Public is not recognised well enough for attempting to enter into an IVA and the goalposts for a successful IVA application seem to be moving all the time
There are a huge proportion of people that I have spoken to in the last few weeks who's only viable option is bankruptcy even though they want to enter into an IVA and pay something towards the debts that they have accrued.
Regards
I have to agree with you wether people choose and iva or dmp to solve their debt problems depending on their individual circumstances. It goes to show that we are facing up to our responsibilites we borrowed the money so we want to try and pay it back.
I for one am trying too pay my debts back along with many others and I think that creditors should work with you and not against you. At the end of the day they were happy to be giving out the money to people regardless of wether they had the means too pay it back just too line their own pockets.
I would have thought that the long term effects on the economy would be far greater if many people seek bankrupcy as the only viable soloution as these financial institutes are not going to get their money back just incur further loses.
