Worst Case Scenario

[OPTIMIST12]

With the worrying news about Debt Matters scaling back their IVA Division following the clampdown on the level of fees - how will this all pan out if more and more companies start going the same way?

Is it in any way possible that IVAs will no longer be an option for people?

I really hope that the Banking and IVA industries can reach an amicable agreement. It will be tragic if IVAs fall by the wayside.

I have however been reassured by the experts posts on other threads that existing IVA customers should be safe.

[bagpuss]

so are they saying its the IP's fees thats the problem...? or have i got it wrong. x

I didnt begrudge a single penny the IP got, and the lenders shouldnt either as it was the IP that got them some of there money back...without the IP they wouldnt have got anything cos i would have had to go bankrupt.



Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Adam Davies]

Hi
Yes in a nut shell it,s the squeeze by creditors on fees that are causing the problem.Average IP fees have been about 8k over the five years but now many creditors are insisting on fees that may bring that figure down to less than 4k on an IVA proposed at £300 per month.Plus there has been a shift from IPs having the majority of their fees paid first before the creditors receive a penny,now creditors want to see money returned after just a few months into the IVA.
We all see posts of poor service from IVA providers and reduced fees will almost certainly compound the problem.
The secret is to go with a smaller company with the personal touch and not with the stock market listed companies that are driven by profit.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp