www.iva.co.uk

When i went in to an IVA i owed about £26k.

With the payments i made it came to £23k. Less ip fees etc i actually paid back £13k, about 50p to the £.

Now if creditors would get their head out of their axxe and try to work with people in debt, and basically try to set up an iva direct without an IP they would be alot better of, but instead they add interest, threaten ccjs and balliffs, and instead they make us to the point of dispear.

It makes me wonder weather creditors budget for loosing some of the debt and if they do, they try to make peoples life hell, hopefully this credit crunch will make them change the way they are.

I have to say now i am out of debt, i am sticking to my budget and even have over £1000 in bank, i can not remmber last time i had a £1000 in bank and no debts it feels sooo good

Unfortunately though James, you have to have an IP to set up an IVA, so unless they start employing their own, and they would be working in their own banks interests, no one elses - you're stuffed!

And I wouldn't hold your breath on the creditors changing their attitudes anytime soon.

Debt solutions of whatever sort has to be one of the few growth industries at the moment.

Interesting post james,it demonstrates no lateral thinking in the UK banks....infact the dumbest Banks are made in UK, in the so call G7 riches nations, as only UK banks have virtually collapsed and living in permafrost....or hell in ice!

I hear the most disturbing news today that the £37 billion Brown bailout of Banks will be all gone with new debts the Banks will show in their 2008/09 results....and beyond.Money 'burnt' through and racked up further in budget deficit!

They are INSOLVENT!!!! Haa

It's all very well to be smug and say the banks are stupid but at the end of the day it's the workers in the banks who are going to suffer with job losses just like the rest of us. I don't think that's anything to gloat about.

You get more sense getting Iggy Pop running the Banks than a weasel in a suit and glasses who can't make a living doing a hard days work other than to speculate and espouse nonsense geek babble

Whatever you see, hear or read at the moment there seems to be a lot of nonsense spoken so I don't expect the banks to be any different.

James, to answer one of your points. When I worked for a very large loan company, built into every loan was what was known as a BDP, standing for bad debt provision. In effect a pot of money was set aside to cover losses when a loan could not be recovered.

Perversely, it was often said that the most profitable department was the recovery department as it was not lending, just collecting bad debts that would have otherwise had to be written off. As those debts should have already been budgeted for in the BDP then any monies collected in the end turned into pure profit and could then be recycled into loans to produce interest from someone else.

Makes your head spin if you think about it too closely......

Regards.

Hi Size 5

With been in business i understand what you are saying, its quiet good really.

They make provisions for bad debt, then write it of, then had it to the recovery department, and any money they get back is a bonus and 100% profit.

I suppose thats what business is about

Exactly - and as UK plc's economy is so reliant upon consumer spending, banks will continue to lend, and sometimes they will not be repaid in full. That is life, and it happens in all western economies.