Are there minimum amounts to qualify for an IVA ?

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robert336
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by robert336 » Mon Dec 18, 2017 8:05 am
Are there minimum amounts to qualify for an IVA ? I have 2 debts, one of £400 and one of c.£14600 and have been told by one company that because of the smaller one I might not qualify for an IVA. Is this correct ? They recommended trying to borrow extra to increase the amount of the smaller debt but I feel this will only increase the amount owing and would probably be declined anyway.
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Oya
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by Oya » Mon Dec 18, 2017 8:26 am
Good morning.. I am not an expert but the advice you’ve been giving can’t be true. They can not advice you get more credits knowingly you will not pay for it. It is fraud and no company should advice or support that. I strongly suggest you speak to another company.
When I decided to go for the IVA I still had nearly £5000 credit available on my cards but I was immediately advised to stop using them as any amount I use from that moment I knew I wasn’t gonna pay back for. So even before my creditors knew my decion I stopped using my cards.
I believe the key of success for IVA starts with honesty. I wouldn’t go and get more credits.. please speak to other companies and good luck..
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kallis3
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by kallis3 » Mon Dec 18, 2017 8:32 am
I would suggest speaking to some more companies for advice. If you have no assets you could go for a DRO or, alternatively a DMP.
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Keith White
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by Keith White » Mon Dec 18, 2017 9:09 am
Hi - thanks for your enquiry. Yes there are minimum total debt levels for an IVA - although no statutory minimum. Its a question of when an Insolvency Practitioner deems an IVA workable. Certainly your debt level is well over the minimum - which I would say is around £6000-£7000. The smaller debt is not an issue. It is certainly worth speaking to 1 or 2 different companies, and find out what all your options are.
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Foggy
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by Foggy » Mon Dec 18, 2017 9:17 am
I agree with the above -- do not increase your debt just to make an IVA more attractive to the firm. Have a chat with a few firms and do a more in depth analysis of your whole situation ... it may be that an IVA is best, it may be that other avenues are better in the long run.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 18, 2017 10:19 am
You debts are all dealt with together in an IVA so no idea why you have been told that £400 is too small - are you sure they were referring to an IVA?
IVAconfused75
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by IVAconfused75 » Mon Dec 18, 2017 1:54 pm
I personally think there should be a minimum amount set of around £30k upwards. I don't see the point in locking someone into a debt plan for 6+yrs, with a debt less than that, with no equity or good job/assets.
What do they expect to receive after the plan? Not very much. Is it worth going after someone like that for a payment of £3-4k a year? Especially to a building society or bank creditor.
In my opinion a debtor owing £20k to a business like that, is the equivalent of owing them £200, based on the amount of money they deal with.
Just puts the debtor through a lot of years of stress and maybe beyond.
In 2017, I'm sure they could devise a better repay back system than an Iva, if you own your home.
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kallis3
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by kallis3 » Mon Dec 18, 2017 2:35 pm
I disagree - it should be lower than that - perhaps £15k as it was when I took mine out.
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Lisa Thomas
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by Lisa Thomas » Mon Dec 18, 2017 4:15 pm
IVAconfused75 wrote:
I personally think there should be a minimum amount set of around £30k upwards. I don't see the point in locking someone into a debt plan for 6+yrs, with a debt less than that, with no equity or good job/assets.
What do they expect to receive after the plan? Not very much. Is it worth going after someone like that for a payment of £3-4k a year? Especially to a building society or bank creditor.
In my opinion a debtor owing £20k to a business like that, is the equivalent of owing them £200, based on the amount of money they deal with.
Just puts the debtor through a lot of years of stress and maybe beyond.
In 2017, I'm sure they could devise a better repay back system than an Iva, if you own your home.


This would force many people into Bankruptcy, which may not be the best option and could mean among other things that they lose their homes, rather than getting to keep them in an IVA.
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Ryan
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by Ryan » Mon Dec 18, 2017 4:21 pm
I agree with Lisa.

Regards
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Foggy
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by Foggy » Mon Dec 18, 2017 4:26 pm
An IVA has to remain as flexible as possible to cater for all of the varying situations people find themselves in ( although this ia a bit of a double edged sword).
IVAconfused75
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by IVAconfused75 » Mon Dec 18, 2017 6:39 pm
Option B could come as biting the bullet and maybe getting some help from family, as many people tell noone they're in a IVA. Then maybe negotiate some scheduled lump payments directly to your creditors over a shorter period of time than 6years.
As you say, every circumstance is different and some might have the desire to sell their home and get a smaller property.
In short, I just think there are sometimes other avenues, which aren't always put on the table from those who are just eager to get you into a locked in court arranged debt plan.
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kallis3
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by kallis3 » Mon Dec 18, 2017 10:08 pm
My parents could not have helped us and had no idea of our IVA.. Each IVA is different.
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Lisa Thomas
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by Lisa Thomas » Tue Dec 19, 2017 11:36 am
IVAconfused75 wrote:
Option B could come as biting the bullet and maybe getting some help from family, as many people tell noone they're in a IVA. Then maybe negotiate some scheduled lump payments directly to your creditors over a shorter period of time than 6years.
As you say, every circumstance is different and some might have the desire to sell their home and get a smaller property.
In short, I just think there are sometimes other avenues, which aren't always put on the table from those who are just eager to get you into a locked in court arranged debt plan.


I'm pretty certain if most debtors were able to get help from a friend/family or do a deal with creditors to avoid formal insolvency they would.

IVAs are not Court arranged.

The other avenues will really depend on whether the debtor has got good advice from an IP and done their research or only explored one option instead of considering all options.
IVAconfused75
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by IVAconfused75 » Tue Dec 19, 2017 6:44 pm
The other avenues will really depend on whether the debtor has got good advice from an IP and done their research or only explored one option instead of considering all options. [/i]


I can appreciate this, in theory. It's unfortunate is not part of an insolvency company's normal practice.
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