www.iva.co.uk

I was interested to see this piece in the Observer yesterday:

http://observer.guardian.co.uk/cash/sto ... 45,00.html

I'd be really interested in people's views on this - especially other IVA providers: I think (I may be wrong) that we have one potential IVA from a person on benefit - but they have VERY UNUSUAL and predictable personal circumstances. Normally, we'd take an awful lot of convincing that this would be in debtor's interests.

Any thoughts?

Andrew Smith

ClearDebt
www.cleardebt.co.uk

Very interesting Andrew

I would absolutely agree with you and the article that people who's income is entirely made up of benefits should not be entering into IVA. If there are exceptional circumstances (ie where the debtor has a significant asset such as a property which would be lost in Bankruptcy) then an IVA might be considered. However, even then the case would have to be look at very carefully.

I think it would be very difficult to assess a case like this without a face to face meeting with the client. Clearly a firm such as Debt Free Direct who I understand do not meet face to face with their clients would struggle with this.

It is a shame that the article stresses the negatives of the IVA for people on benefits but does not really give any in depth advice about the alternatives. I imagine that anyone having read the article who is currently on benefits with a debt problem is now very worried. It would have been nice to see the author explain the alternative such as the Informal Payment plan and Bankruptcy in more detail stressing the pros and cons of each. At least then the reader would have gained a balanced view.

Thomas Charles is endevouring to achieve this with the journalists known to us

James Falla

If you would like further information about IVAs or other debt solutions, please feel free to contact us.

James Falla
www.thomascharles.com

Hi Andrew,
Yes I read this article too. I guess at macro-level the debate could be about how welfare benefit provisions allow for a surplus income high enough to support an IVA proposal in the first place. That is perhaps a debate for a different forum though.

Generally we see very few pure benefit cases where an IVA would be considered a suitable option without other supporting circumstances.

The comprehensive benefits entitlement check service that we operate at Myvesta is used to boost income via state benefit entitlement to support daily sustainance. We do not view welfare payments alone as a sound basis for an IVA recommendation.

See: http://myvesta.org.uk/media/video/ram/bec.ram




Kind regards

Sean
http://www.myvesta.org.uk