www.iva.co.uk

hi all just a small question i have read somewhere that the big companys sell their debts on some for as little as 10p in the pound to eversheds etc if this is the case then surely when offering a final settlement to end early the dividend should be lower?these companys must make huge profits i had 12 creditors and all of mine have been sold on i recieved a letter saying they wont be in touch again

You are right in saying the debts are sold on for very little.
This does not mean they will accept a lesser dividend than you have already promised. You will find that although they have spent very little on these debts, they will still want the best return possible.

Hi
Some of the sold on debts will never be recovered and the admin involved in recovering debts is costly.
It's swings and roundabouts,they make good money on some and lose on others
Regards

eversheds brought up a load of my debt, guess they are hoping that I'll end up paying more back in my IVA than what they paid for the debt.

But if it was 10p in the pound well my creditors could have got that from me instead of going to eversheads lol.

As I have just posted on another thread I am sure that my recent F&F offer was successful mainly because Max Recovery now held most of my debts and were prepared to take a slightly lower dividend than under the IVA.

Debbie

Forgive me if I've missed something here, but does that not mean that Eversheds are getting shed loads of money for something they ae paid next to nothing for? Why don't the banks hang on for longer in case people do go into an IVA or DMP so that they can recover more?

I'm not sure but I think it's something to do with the banks not liking to look as if they have lots of debt on their books ... or there may be some kind of tax relief involved if they 'write off' the debt?

Debbie

My debts were sold onto eversheads after the IVA went through. They are gambling that the IVA will run its course. A good bet I hope in my case.

But then I hear them buying up debts of people who have been discharged bankrupt which seem silly to me.

Only one of mine went to Eversheds, and now you come to mention it, it was after my IVA went through. A couple of my others went to Robinson Way, and one went to Blair Oliver Scott. All of these were way before my IVA was even thought of. They must be making money from this though.

Yes so long as they pay less for the debt than what you eventually pay back in the IVA they will make shed loads. Pardon the pun.

I'm in the wrong job!!!!!!!!!!!

Its not always the case that they will just accept a lesser dividend if you offer a F&F.

They owned the majority of hubbys debts when he made an offer for F&F and there still had to be an adjournment.
On the day of the meeting they asked a lot of questions about why the offer was being made and a few phone calls later it had been adjourned (we found out later)

I think it could be dangerous to just assume they will accept just because they have already made a profit.

Absolutely, they are in the game to make as much money as possible, and just like any other creditor want to see the maximum return.

The clue is in their name Max Recovery

I won't be offering any F&F and will run the full course of the IVA as originally planned.