uk Bankruptcy Ltd want a fee of 1050 pounds

[kk16]

Hi, i have just had a call off a company called 'UK Bankruptcy Ltd', apparantly they got my details off the 'IVA Council', to give you a bit of background....

had debts of 22k, single with 4 year old daughter, no assets, renting, working part time 16 hours / tax credits. this time last year, my debts had spiralled out of control, i was trying to get one loan to pay off everything but because i had missed two payments it was difficult, company called 'Freeman Jones' came to the rescue (or so i thought), i had my own personal IP and we came to the conc that an IVA was the best route, i currently pay and have been paying £200 per month for last 10 months with no problems, i understand that i am tied for next 5years paying this and even after completion it will remain on my file for sometime,. everything seemed to go well, until i had a letter from 'The IVA Council' saying that i have been misold my IVA and that i can reclaim back what i have paid etc etc,. i have just come off the phone from 'uk Bankruptcy Ltd' saying that basically my IVA is a form of bankruptcy and will stay on my file for 6 years once completed whereas bankruptcy means that i wont have to pay anymore of my IVA and by applying to court can clear my debts and have bankruptcy wiped off my file in a year from the court date? i really am confused now, i know that Freeman Jones are taking their cut out of what i pay but at least i am trying to clear what i owe? but now this bankruptcy sounds better, this company want a fee of £1050 payable over 5 months? has anyone used this company or can advise if this is the best solution? thanks.

[MelanieGiles]

How do they know you were mis-sold your IVA - were they in the meeting between you and your IP when you decided that an IVA was the right course of action?

I would discuss this with your own IP - especially if you are having difficulty in paying your payments. You clearly chose the IVA as the right route for specific reasons and to claim that you were mis-sold it is a dangerous allegation.

This company are making mischief for a lot of the larger providers of IVAs, but if you genuinely feel that you were badly advised, the best people to talk to are your IP himself or his regulatory body.

If you feel that bankruptcy is a better way forward, then by all means make an application but I would not pay a fee to someone for merely helping you to fill out a few forms.

[iva experts]

Hello kk16,

I have not heard of the company UK Bankruptcy, however I have heard of the IVA Council and I can tell you that none of it has been positive.

An IVA is not a form of Bankruptcy but they are both a option when an individual is found to be Insolvent. Bankruptcy will remain on your credit file for a period of 6 years, this is the same in an IVA.

Bankruptcy is still individual, the courts will look at your monthly income and expenditure. If they believe you have disposable income you can be making payments to your creditors for a period of up to 3 years. However the usual amount of time that an individual is classed as a bankrupt is 12 months.

I believe that you are being mislead and would not continue with the IVA Council or UK Bankruptcy.

[MelanieGiles]

UK Bankruptcy are the company which the IVA Council refer "cases of mis-selling" to. In reality they are an outfit who make money out of filling in simple forms for people prior to their bankruptcy applications.

[louisa.s]

I would second the advice that you've received from the experts and other forum members.

Avoid the IVA Council like the plague. They work their way through the IVA listing on the insolvency site and their letters are misleading particularly the bit about reclaiming what you have paid!!!. As Paul mentions even in bankruptcy you can still be subject to monthly payments.

If you can manage your repayments and are happy with your IVA then stick with it!

If not and it is making life difficult then bankruptcy would the route to go down and will cost £485 and the forms are not difficult to fill in so please don't pay someone for the pleasure!

We've had our letters (hubby and I) and they are going where they belong in the bin.

if you need anymore advice - you know where we all are!

Lou

[kk16]

thanks for all your help, i did cancel my d/d this morn for my iva, and then i spoke to 'insolvency service' who gave some sound advice, i rang the bank to reinstate d/d and then spoke to my ip at freeman jones, he was very thankful that i had rang him and we have agreed to update my file with current outgoings etc and he will look into it... i know that BR is a final resort and i dont really want to go down that route, have to wait and see what he comes back with i suppose.... he was going to ring these uk bankruptcy ppl on mybehalf... havent had a call this evening from them so i suppose he got thru,.. incidently, 'CREDIT TODAY' are trying to get hold of UK Bankruptcy, but to no avail, they are a bogus company, so i was rite to be a bit cautious.... thannks all.

[MelanieGiles]

Well some good has come out of this in that you and your IP are talking about your difficulties, so perhaps you should thank the IVA Council for that!!!!