trouble with iva

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pointy00
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by pointy00 » Thu Jan 14, 2010 4:54 pm
hello all

my iva company (debtline direct) want to increase my IVA payments. I have spoken with debt managment company who can help me go BR and be debt free in 6 months??
any advice on these debt managemnt companies and they also charge a fee?? pls help

 

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Skippy
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by Skippy » Thu Jan 14, 2010 5:25 pm
Hi and welcome to the forum.

Payments to your IVA should only increase if your disposable income increases, and even then any increased expenditure is taken into account.

To be told to go BR and be 'debt free in 6 months' is complete rubbish. You are BR for 12 months, unless you get early discharge, which is a privilege and not a right. If you have £100 or more disposable income each month you will get an Income Payment Agreement for up to 70% of your DI. Also, your credit files will be shot for a further 6 years from the date of your BR.

Did you contact the company or did they approach you? Most companies charge a very large fee for something that is quite easy to do yourself.

If you are struggling with your IVA payments the first thing to do is speak to your IP who may be able to reduce the payments slightly.

 

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kallis3
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by kallis3 » Thu Jan 14, 2010 7:48 pm
Welcome from me as well.

I agree with Skippy. BR will get rid of your debts, but it will hang around your neck for a long time.

If you can afford increased payments and your IVA is running ok, then why not continue with it?

If you have problems then your IP is the first one to turn to. I would not recommend paying any company to help you go bankrupt.

 

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MelanieGiles
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by MelanieGiles » Thu Jan 14, 2010 8:25 pm
Did you actually fully consider all of the options when you first proposed your IVA, and have you spoken to your IP to discuss your concern about your increased payments?

Do you feel that these are unaffodable, or do you just object to paying more than was originally agreed?

If you decide that bankruptcy is an option you want to pursue, you do not need to use the services of a debt management company as the process is actually quite simple.

 

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pointy00
Posts: 5
by pointy00 » Thu Jan 14, 2010 11:18 pm
thanks for the advice melanie.
I dont think the increase they have asked for is reasonable .....if any emergency comes along in the month i am in trouble if i go ahead with the increase they want. I am also apprehenive in the future if they want more money again. how easy is the BR route when an iva is failed??

 

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MelanieGiles
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by MelanieGiles » Thu Jan 14, 2010 11:23 pm
If you feel that your IPs assessment of your disposable income is unfair and unaffordable, you can threaten taking the matter to Court for a judge to assess. District Judges generally rule in favour of the individual in these matters, and your IP is unlikely to want to go down this route.

 

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pointy00
Posts: 5
by pointy00 » Thu Jan 14, 2010 11:32 pm
ok thanks. Can i ask a couple of Q's?
What happens if i stop my IVA payments;
I believe after 3 /4 non payments my IVA company will issue a termination certificate? can i then go BR once i have the certificate or before?thanks adam

 

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MRBLUESKY
Posts: 2870
by MRBLUESKY » Fri Jan 15, 2010 12:02 am
hi pointy i believe your iva has to be terminated before you can apply for bankruptcy.the professionals will confirm this bear in mind in bankruptcy if a income payment is issued it will normally last for 3 years.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 15, 2010 12:26 am
You will generally have to wait until you receive your termination certificate as most Court's like to see this in place before allowing a bankruptcy application to proceed.
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