My policy when talking to clients in the early days, is to outline all of the options available. Just because we don't feel they are the best option, our clients might. I have to say, however, that in my opinion a DMP is possibly the best option for you - as this will not necessarily affect your credit rating and may make it easier to raise funds in the future against your property to offer an early settlement to creditors.
You appear to be concerned that the option of an IVA was not discussed with you, and you may have a valid point, but in my opinion it is unlikely that creditors would have accepted this, so perhaps that was the spirit of the advice you were given.
Hi
I think that an IVA was probably not the right option for you given the combination of your equity level, your disposible income and more importantly the fact that your DI could well increase in the short term.
Had they discussed and explained this to you in detail at the time then maybe you would not feel so aggrieved.
I think it will come down to opinion because when dealing with insolvency there is very little that is black and white. On the info provided I think that you were given correct advice.
Regards
MelanieGiles wrote:
But you had disposable income you could also pay on an ongoing basis!
Please clarify what you mean by this Melanie.....I get the feeling that you think I had additional money over and above the payments i was already unable to keep towards my creditors...
My so called 'disposable income' was and is in fact the only money left after paying household related bills (i.e not loans, CCs etc) for mortgage, council tax, utility bills etc. So it was not 'disposable' as such at all....
Last edited by topgeeza on Tue Sep 29, 2009 10:59 pm, edited 1 time in total.
Aren't you paying £420 int your DMP on a monthly basis? This is called disposable income. So over a 5 year period you would have paid £25,200 to your creditors if you had maintained regular monthly payments at that level.
MelanieGiles wrote:
Aren't you paying £420 int your DMP on a monthly basis? This is called disposable income. So over a 5 year period you would have paid £25,200 to your creditors if you had maintained regular monthly payments at that level.
Agreed, but people with IVA's also have 'disposable income' that they pay into their IVA
Hi
25K plus the 30k that you could realise from your property would repay your debts within five years. This is why an IVA was not a viable option.
Regards
Hi
Disposable income is the money left from your income once all reasonable living expenses are deducted. This is the amount that you have available to pay your creditors each month and this will be the amount that would be paid into any IVA.
Regards
Plus the payments may well go up over the five years with pay rises and/or overtime and bonuses if there are any, so your debts could be repaid in full over a fairly short time.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I think this is one of the most interesting and valuable threads I've read on here. I'm pretty happy the CCCS gave good advice but they may not have explained it clearly enough.
By their own admission they only do 60-80 IVAs per month and given the huge number of calls they deal with they could and probably should do far more.
CCCS earn money from doing IVAs like everyone else.
There are Debt Advisors who would have fudged and fiddled you into an IVA, or least tried. They might have earned a big upfront fat fee, then possibly a mortgage or secured loan referral fee, or sent you off to a fee charging debt management company and earned another fee. CCCS have done none of that.
I certainly don't agree with all the advice CCCS give their clients but I think they got it right on the figures you gave us.
An extremely interesting thread.
Last edited by johnnybriggs on Wed Sep 30, 2009 7:51 am, edited 1 time in total.
Thanks for taking the time to reply, I accept the opinions given on here.
However, I would also appreciate your comments on the other points that i've raised:
1) The option of an IVA was never mentioned to me by the CCCS. surely they, in an expert advisory capacity, should have presented me with ALL of the options and explained whether they were suitable or not?
2) The CCCS did advise me of the approximate duration of the DMP and that my credit rating would be impact during the lifetime of the DMP, however, they did NOT Advise me that a creditor MAY record an 'Arrangement to Pay' on my credit file until the debt was cleared. This will actually affect me for 15 years! This is equivalent to 2 1/2 bankruptcies! I feel that it is totally unacceptable that the CCCS did not advise me of this possibility! Comments please...............
3) Why would I not be a suitable candidate for an IVA due to the amount of equity in my home when others with greater equity and similar debts are deemed suitable?
Hi
1; that is a valid point, hopefully CCCs will reply and clarify
2; I think that the fact that CCCs told you that a DMP would impact your credit record is enough info. They can't be sure on what steps creditors will actually take with regards to this point.
3; Have you spoken to other companies/experts to see if an IVA is actually an option now ? It could be that your equity/disposable income is such that an IVA may now be an option ?
3; Have you spoken to other companies/experts to see if an IVA is actually an option now ? It could be that your equity/disposable income is such that an IVA may now be an option ?
Hi Andy,
Thanks for your reply. Can an IVA be done now with a remaining debt of £18.5k? My DMP is due to clear by July 2013 (ish).
