Hope you can help me, my parents have just told me that they are going to go down the route of an IVA, as they have got themselves into a lot of debt. The total amount comes to £70k. Could I just have clarification on the following please:
- They are looking to use Freeman Jones, can you confirm they are a genuine company?
- The information that I have read states that there will be 60 monthly payments and after this you will not owe any of your creditors any more money, can you confirm this is correct?
- What is the success rate of someone being accepted for an IVA?
- If there is no equity in their property at the end of the term then and they don't have a lump sum to offer, what happens?
- What other assets do they look at? and to what value?
I am worried sick for them, they have never spoken to me about this before and I didn't realise how much they had actually borrowed, I just want to some reassurance that an IVA is the right decision for them.
My 1st piece of advice is to shop around for a couple of more IVA providers. Nothing against the one that has been used so far but check out iva.com for listing and reviews.
What other assets do they have??
Yes after 60 months you will owe nobody anything.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Hello
I'm with Freeman Jones and have been for the past 42 months, I have found them excellent, my contact there is Beverlie.
My debt was approx the same as your parents.
My Iva and most IVA's run for 60 months - mine is. After which my debt is dismissed.
With regard to success rate it might be better to wait for a expert to answer this one!! I was accepted first go!!
Currently I have an equity clause to raise a lump sum at end of my IVA if I cannot raise the lump sum by way of re-mortgage or loan then my IVA will be extended for a further 12 months.
I was able to keep my Renault Megane but other than my house and car I really didn't have any other asset, but again an expert will be along to help.
My life is so much better since I went into my IVA (back in 2005)I can breath again.
Hey don't worry at least they are seeking help!! There are some great people on this forum, you have found the best place good luck and try and support them with a smile.
Karen xx
Last edited by kabby3 on Mon Jan 19, 2009 6:05 pm, edited 1 time in total.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Dont worry what Kabby is paying compared to what your parents are being asked for. You cannot compare contributions in that way,its what can be afforded that matters.
At least with Kabby's reference you may be a little easier about things having heard 1st hand about FJ.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I agree with Paul in that your parents should give a couple of companies a ring. There are several on here who come recommended and can be found under the experts link on the left hand side of the page. The advice is free.
Each IVA is decided upon the amount of disposable income you have after all your priority debts have been paid.
With the 4th year clause, if they have it, then a lot of the time if you cannot remortgage then sometimes the IVA can continue for a further 12 months.
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
You should get your parents to visit (or you can on their behalf)www.iva.com and see reviews on several iva providers.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
It would be best to have a look around and see what other companies advise your parents.
An IVA does normally last for 5 years unless there is a change in circumstances part way through and revised proposals are put forward.
If they dont have any equity or cannot release any due to income or age, it is normally the case to pay for an extra 12 months.
Your parents have admitted to this debt that they have encountered, which for some is the hardest thing to do.
But it may be best to have a look at the website as suggested by David above.
Over 80% of IVAs which are presented to creditors are now accepted, with a number of firms experiencing much higher results. Freeman Jones are an actual firm of IPs, in fact they are one of the larger volume processing companies.
Your parents assets will all be taken into consideration in proposing the IVA, and assuming that Freeman Jones have adopted the IVA protocol, they will be asked to get their property revalued during the final year of the IVA and raise equity based upon an 85% loan to value ratio. If this would not result in any monies being available, then they would have complied with their requirements and the IVA will conclude once the final payment is paid.
