www.iva.co.uk

Hi there i have been in an IVA with baines and ernst now for about 3 years and i was just wondering whether it wud be better to stay with them or transfer to another company as they charge us £35 a month and if we did swap IVA companys how easy would that be or how hard!!!

Hi and welcome to the forum.

You cannot swop firms when you are in an IVA. Is the £35 a month their Supervisory fee?

I am a little suspicious that you may not actually be on an IVA at all.

It is telling that you mention Baines and Ernst and not Blair Endersby, (Baines and Ernst don't provide IVA's, although their IP arm Blair Endersby does)

The fee that you mention is that particular firms minimum monthly fee for a DMP, which also suggests that you are contributing less than £200 if that is the case, so I would simply ask the question of are you sure you are in an IVA and not on a DMP?

Regards.

hi the £35 i pay is there management fee for dealing with our creditors they say our plan will last for 14years 10 months can IVAs actually last that long??

Hi,

You are not in an IVA you are in a DMP.

An IVA will last 5/6 years maximum

I was sold this as an IVA i didnt know anything about a DMP what is it??

Hi,

An IVA is where you pay a fixed sum for a period of 5 to 6 years and and at the end of the period the remainder of your debt is written off. It is a legally binding agreement and none of your creditors can take any action against you or add charges etc. Payments can go up and down during the term subject to your individual circumstances.

A DMP is a debt management plan where you pay an amount each month but your creditors do not have to accept it and can still charge interest each month which I am sure they probably will. These can go on for 15/20 years.

I would seriously go back to Baines and Ernst and find out what is going on as Size5 said previously it is only Blair Endersby who do the IVA's (I am with them)

A DMP is an informal arrangement whereby you pay an affordable figure on otherwise unaffordable debts. Your DMP provider will look to make sure that interest is frozen to allow you the chance to get free from your debt in the quickest possible time. This is not guaranteed as it is in an IVA, but generally creditors will play ball. The DMP runs until the debt is paid back in full, or until you can fund an informal full and final settlement of the debts. DMP's are a valuable tool in helping people out of debt, but really they are not designed to run for 14 years plus.

As a matter of interest, how much do you owe and how much are you currently paying?

Regards.

Hi
We have read of this before on the forum. People told that they are eligible for an IVA with Baines and Ernst, making a payment only then to be put into a DMP because an IVA is unsuitable.
David may need to look into this so that this kind of practice is stamped out.
Regards

I am onto it.

i currently owe £13.000 and am paying £100pm for the next 14 years is this still the best way forward for me as both myself and my wife are not working due to disabilities

You could be ideal candidates for the new Debt Relief Order process - you need to satisfy the following criteria

Debts less than £15,000
Disposable monthly income of less than £50
Assets less than £300
You cannot be a homeowner

Would you meet the above criteria?

We spoke to Baines and Ernst, who passed us to their sister company and took a £750 payment for doing this. They advised us that they did not deal with IVA and for a fee introduced us to Blair Endersby.

Who are basically the same company! Disgusting that you should have been charged that much for putting you in touch with their IVA arm.

What did they say the £750 related to?