I had a couple of questions in regards of my IVA. It has been 1 year and a half I am on IVA I pay £102 every month for 7 years with Vanguard Insolvency
My question is, from the detailed creditor lists it appears I am repaying only £3500 to my creditors and the other half to Vanguard. Did I go with the wrong company? Is there a Governmental Practitioner that does it for free?
If so, can I change and pass my IVA to the new Company?
Another question is, being on IVA is it worth it to create an account with LoqBox to increase my Credit Score or it doesn't do anything?
Shall I consider Bankruptcy? I live in a council flat and I literally own nothing, are they allowed to come and take furniture in my flat? For how long it stays in the public record? I read it stays for 1 year only. I find myself always very tight at the end of the month and really need to consider what would be the option for me.
Regards
Fees are pretty much standard and are agreed by your creditors --- there is no free IVA service available, however, the money for fees means the creditors get less, not that you pay more.
Bankruptcy: You will, usually, be discharged in a year, but the bankruptcy will show on your credit files for 6 years afterward. You could end up making payments similar to your IVA payments for three years and your creditors would be getting a lot les, as the fees in bankruptcy are usually more than in an IVA. Also, you will have to pay £750 up front in court fees.
Depending on the level of debt you have, a DRO might be worth exploring.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
thanks a lot for the quick answer. I know there are some fees, but basically the creditors are getting half of the full amount I am paying over 7 years and the other half goes to Vanguard Insolvency.
I thought there were some non profit companies that would only charge the fees. I read in my IVA agreement that my Supervisor is getting something like £1000.
One more question, my parents want to help and they would be happy to pay it off at once, would I be allowed to do that and finish my IVA in advance? The amount left to pay is £5500.
Thanks a lot,
Michele
Fees are split: You first have the Nominees fee (for setting everything up) -- this is typically around £1750. After that there are supervisors fees which are usually between 15% and 25% of what you pay in. On top of all those are disbursements, usually between £500 - £1000. You are paying a relatively low monthly amount, so most of it is eaten up in fees --- this may be why the term is 7 years (they are normally 5). The so-called 'charity' firms charge the same fees for IVA's. It is DMP's they do 'fee free' as they get 'donations' from the creditors to cover this.
As for paying off early -- yes, this is possible and often done. It is called a "Full and Final Offer" and is based on what you have left to pay, which can be rounded down a little.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks a lot for your answer. All very clear now.
One more thing, you wrote about DMP's doing free fees. Is there an option to transfer my IVA with them to lower the monthly payment or same amount but for less time? Is this something that can be done?
Thanks a Million
You cannot transfer it. You would have to fail your IVA at which time your creditors may well add on interest and charges.
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
Thu Jan 02, 2020 3:34 pmmichele137 wrote:
Hi Foggy,
Thanks a lot for your answer. All very clear now.
One more thing, you wrote about DMP's doing free fees. Is there an option to transfer my IVA with them to lower the monthly payment or same amount but for less time? Is this something that can be done?
Thanks a Million
The aim with a DMP is to pay back the full debt. Sometimes they will forgive interest ( but not always), but the DMP will run until the actual debt is paid in full ... so could be quite some time. You would have to fail the IVA and them hope that the creditors would accept a DMP -- there are no guarantees that they would, especially having failed the lifeline they have already agreed to ( the IVA).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thu Jan 02, 2020 3:56 pmmichele137 wrote:
Understood. According to your experience, if I still owe £5500 what amount could I offer to pay it off?
As your payment is actually pretty low, your wriggle room is reduced. I would say £4,500 - £5,000, but, obviously, the higher the better (more likely to be accepted).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
