www.iva.co.uk

morning-feel guilty posting now im on the mend-am i allowed one question [:I]
its just a general question and i think it has been covered slightly before-but reading the newspaper today towards the back pages theres now a worrying amount of companies saying forget an iva and just pay us your normal amount that you would pay your creditors and we can find loop hole clauses to write off your loans and credit cards-it scares me to death-are these companies legit and how is it legal-sorry to ask but it was an interesting thought how many will actually do this .

The companies are legit FD. They do promise to write off your debts, and I have no doubt some of them do manage it - but it will cost you, and it is debt avoidance pure and simple.

I imagine as well that you would find it difficult to get credit with any of the companies who have had to write your debt off!

At least we are safe in the knowledge that we are repaying some of our debts. We can sleep at night.

youre absolutely right kal
im thankful for my second chance.
i just worry that people who are as petrified as i was will think this is an answer to solve their problems

I am sure a lot of people will do that Fergie. They think it is the answer to their prayers.

Of course there are the other ones who have no intention of paying anything back at all if they can help it. The lowest of the low if you ask me.

I started a thread a while back due to a friend starting this process. VERY VERY unsure about all this and it does cost. I feel we will see this rise in the next few months in the media as the first big bunch of cases near their end from the Summer as it can take 6-8 months to complete. My friend has had defaults on her credit cards even though this company says it cannot, wonder when the bailiffs will start showing as she has already started getting the threatening letters, phone calls...very scary.

But to be honest I doubt if many will be able to afford the choice of not going down this route in 2009 when they otherwise would not have. Seeing the financial institutions corruption, Directors fleeing paying creditors, customers and starting a company the next day of 2008, I feel joe public will be heading down the same slippery road, if these bigwigs can find a way out then so can we will be the attitude/sales point.Not as if the Government will be handing out dosh to us.

I also think it will go the same way as the penalty charges and the Government will step in to halt all proceedings and sort it out.

glad im not one of them. im grabbing my second chance with both hands and i know i have a responsibility to sort this out and the iva has allowed me to do that. im so grateful to melanie taking that chance with me.

It is still very wrong - you took the loans and should have read the small print before you signed anything.

You should pay them back, or as much as you could afford and I will never accept that it is a good thing for removing debt.

I agree Jan. It seems wrong to borrow the money and then not try to pay anything back. How many people who can afford the repayments will use this loophole to get out of paying anything back at all?

Hi
It can't be right and I hope that we see a swift closing of this loophole
Regards

That's right Skippy. I am sure that a lot of unscrupulous people will take advantage of it, and it is wrong, wrong, wrong.

Andy, I hope someone closes it asap.

is what theyre doing fraudulent kal ?

I don't think so as these firms are saying they can legally write the money off.

However, if you took out credit without any intention of paying it back, then that would be fraudulent.

I don't think it's fraudulent FD, more immoral. Companies are saying that even though the money was borrowed in good faith someone could get out of repaying it due to a loophole in the law.

im just sooooo thankful for my second chance x