Soulgrowth wrote:
.... but ... at risk of paying devil's advocate ... this is the problem ... the "IVA Council" may well have a point taking a hypothetical situation as Matt's into account ... would Matt have been better off in bankruptcy?
Debbie
I'd just like to ask the question ... 'Better off?'
what does that mean?
From the IVA Council's perspective, they are looking at it as a way of referring work to A N Other for a commission. A N Other would then 'Assist' Matt to fill in forms so that Matt can make himself Bankrupt. Now Matt is probably perfectly capable of filling in the forms himself and in doing so he would save himself One thousand and odd pounds. No doubt he is being advised that it is a very complex process. Tosh.
What the IVA Council are also assuming is that because Matt is in an IVA, he has potentially been mis-sold that IVA. How does the IVA Council know that? Well, they make the assumption that, no matter what IP you use, no matter how big or small the Practice is in which the IP is involved, Matt is in an IVA. He has therefore potentially been mis-sold it, period. The IVA Council when they wrote to Matt (and the thousands of others) wrote because his name appeared on the EIIR. They have no other facts about Matt's or anyone's IVA for that matter other than the IP appointed Supervisor, the Court in which the application was made, the date his IVA was approved and because the EIIR deems it necessary, they also have the address at the time the arrangement was approved.
I think the biggest thing that the IVA Council are guilty of is forcing their views on those they contact. They effectively are insisting that the debtor forego any obligations they may have felt or had to repay their creditors and become bankrupt. The debtor is sold on this fact because they will no longer have to make their contributions they had been making in their IVA and as such is better off.
What will happen to this country if everyone adopted that attitude? I dread to think.
Matt, in your case, if you make yourself bankrupt, two years in to your IVA and therfore only 3 years from a cleaner credit record, you will find yourself bankrupt. Yes it may only last a year. But it's going to be on your record for another 6 years. Further if the duly appointed Trustee reviews your IVA history and after contacting your IP finds out that you were in an IVA that had not been subject to any default, that Trustee is going to do their best to secure income payments ... (Correct me if I am wrong) you're looking at three years worth.
But hang on ... your IVA has only three years to run ...
You've spent a thousand and odd pounds making yourself bankrupt ... but now you've got an income payments order.
Unless I'm mistaken, you aren't going to be better off at all, in fact you're going to be worse off and add to that the added six years on your credit record.
If you feel you have been mis-sold your IVA then by all means contact the IVA Council, but think very carefully about the advice that they give you ... They will probably suggest to you that they have a wonderful QC acting on their behalf, who has a cast iron case against a number of IP's. They have had this wonderful QC for a very long time. They have had this cast iron case for a very long time. They can talk the talk but when it comes to providing any credible evidence they are not so forthcoming.
I am sure that ultimately, they will suggest that you go bankrupt. I am sure they will ask you to stop making payments in to your IVA. They will then suggest you make payments to them. I'm going to go as far as suggesting that they may well even provide a pre-printed letter for you to sign and send to your IP that advises that you have stopped making contributions and requesting your IP writes to the Court and advises of that fact, to assist in your petition for bankruptcy.
You have to consider what you are comfortable with.
When anyone contacts an IP in connection with their financial difficulties, that person should only consider an IVA after they have been given an explanation of the alternatives available and the advantages and disadvantages of each of those options. If you are not given that basic information before being told you are suitable for an IVA, then I would suggest you look to another IP.
I would also suggest that if you are not given that information, you should also visit the website
http://www.IVA.com and leave feedback there to warn others of the advice you have been given. If everyone were to do that then those organisations who are not acting in the interests of their clients and the interests of the creditors, but merely seeking to line their own pockets will become easily identified. If they continue on those lines after receiving persistent negative feedback, it will not go unnoticed.
Tell it like it is.
