www.iva.co.uk

I am with Baines and Ernst at the moment who are managing a debt plan for me. I am disabled but have a steady income of disability benefits. My mortgage and debts are more than the equity in my property so I would like to know whether I qualify for an IVA

Hi
Under the new IVA protocol an income solely made up of benefits will mean that an IVA is not possible.
However I suggest that you speak with B&E and see what they suggest.
Regards

You don't have to do it via the protocol Andy. If the circumstances stack up, there is no reason why a disabled person cannot put forward a non-protocol IVA.

Hi
Good point Melanie !!
Why do we have a protocol ?
Regards

It is daft Andy in certain circumstances. And the discrimination towards disabled people is particularly unsavoury in my eyes, as creditors were not so choosy when they were lending the money!

Very good point

The Protocol, Melanie is not daft and represents approximately 80% of all IVA's that are put forward. What a Protocol compliant IVA means is IF from the IP's point of view it qualifies then creditors in the main have to accept it unless they give proper sustainable reasons as to why not. I suggest that Melanie and Andy read the Insolvency Service Website regarding this.

All other IVA's are treated on their merits and if the circumstances are right then many non-Protocol compliant IVA's are acceptable - we have done loads of non-compliant ones based on individual circumstances. Disabled persons are able to put an IVA forward - hence there should be no discrimination in respect of having an IVA - but not a Protocol compliant one.

Hi
The point is David why have a protocol that is not universally open to all ?, seems daft to me.
Regards

Because only on the benefits point - creditors felt that they did not want the tax payer being responsible for funding their debt - as simple as that.

Hi
But it is money that has been lent on the basis that it is repaid from benefits [ tax payers funds ]
Why is it different once a debtor finds themselves in trouble ?
Regards

Because lenders were not happy to receive re-payment basically from the Government using taxpayers funds. Bit hollow now that most banks have been bailed out using taxpayers funds - might wish to revisit this at next IVA Standing Committee meeting

Hi
May be worth revisiting David, can't be right that they will lend money to people where income is soleley benefits based but then exclude them from a valid debt solution when they find themselves in trouble.
Regards

Thank you for the steerage David, which is not necessary. I have been using the protocol in my firms since it was introduced in February, and fully support it in the majority of cases. The point I was making relates to one specific area if you read my post again.

Accepted Melanie, but that one specific area is only not acceptable for persons on benefit income - for the reasons I have articulated above - I don't think that that is daft at the time the Protocol was debated and implimented as creditors are entitled to their views however perverse we might think they are.

I was delighted to receive a phone call from one of Melanie's associates in order to discuss a possible IVA for me. I am fed up of having to do battle with everyone just because I carry a disability! Everyday is a physical battle and, even though I know that I got myself into this debt, it would be very refreshing to have something useful to rely on. This is in no way a reflection on Baines and Ernst, they have been really good to me, but, it would be great to think that I could solve this problem in a shorter time than 30 years!