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Posted: Mon Jul 21, 2008 10:48 am
by nauman.a
I am planing to open an IVA company and is gathering information on all aspects of its function. Could you please help?
Your help would be much appreciated
Many Thanks
Posted: Mon Jul 21, 2008 10:49 am
by Viki.W
Hey nauman, welcome to the forum. There are lots of IPs on here so they will be able to advise you so hang in there and good luck for your company. X
Posted: Mon Jul 21, 2008 10:56 am
by pbeck
Hi there
There are lots of IVA companies already. If you check out the share prices of ones quoted on the stock exchange they are having a really tough time because of creditor pressure on fees, IVA rejections, market competition etc.
If you're going to make money in this business you need to be able to run a tight ship, get quality clients and not spend too much on marketing, office cost etc. Do you have a good source of leads to get your IVA business running ?
Posted: Mon Jul 21, 2008 5:32 pm
by MelanieGiles
Are you an Insolvency Practitioner already?
Posted: Mon Jul 21, 2008 8:45 pm
by nauman.a
May I know the difference between Debt Management and IVA please.
Posted: Mon Jul 21, 2008 8:46 pm
by nauman.a
May I know the difference between Debt Management and IVA please.
Posted: Mon Jul 21, 2008 8:47 pm
by Viki.W
I think that to start an IVA company you would need to know this nauman, have we mis read your post? Or, is it a debt management company that you want to start?
Posted: Mon Jul 21, 2008 8:52 pm
by MelanieGiles
Whole books have been written on this subject, but in brief:-
An IVA is a formal insolvency appointment supervised by a professional suitably qualified for such purpose. IVAs are a legal, contractual arrangement between debtor and creditors which cannot be amended once accepted unless with the agreement of both parties. The agreement sets the terms of the IVA - to be payments by monthly instalments, or the realisation of assets or a combination of both, over a formal set time period during which creditors cannot continue to charge interest or take enforcement action against the debtor. At the end of the agreement, the debtor is formall released from any balances owing.
A DMP is an informal agreement between debtor and creditors which has no basis in law, or affords any protection to the debtor from the ongoing actions of creditors. Notwithstanding this lack of certainty, a lot of creditors are currently accepting DMPs and freezing interest, and I suspect that we will see growth in this industry over the next couple of years.
Posted: Mon Jul 21, 2008 8:57 pm
by Viki.W
We were talking about this at Bradford. Melanie, would creditors accept DMPs from any DMP company if the offer was good or do they also base it on the reputation and length of time the company has been trading?
Posted: Mon Jul 21, 2008 9:16 pm
by MelanieGiles
I think that reputation has some bearing Viki, but at the end of the day the creditors simply want their money repaid!
Posted: Mon Jul 21, 2008 9:17 pm
by LoneRanger
Sounds like alot of work needs to be put in before you even think about opening an IVA comapny. How can you start a an IVA company when not knowing what an IVA is? IS this a wind up?
Posted: Mon Jul 21, 2008 9:18 pm
by Viki.W
Good point Melanie, thanks.X
Posted: Mon Jul 21, 2008 9:21 pm
by Skippy
I was wondering that Steve!
Posted: Mon Jul 21, 2008 9:23 pm
by Viki.W
Yeah, quite important stuff to know if you want to start a company.
Posted: Mon Jul 21, 2008 9:30 pm
by kallis3
Sounds like a wind up to me as well.