Is an iva a free service?

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dkw
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by dkw » Fri Jul 21, 2017 1:23 pm
Is an iva a free service that costs me nothing and no charges from the iva company? Thank you.
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kallis3
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by kallis3 » Fri Jul 21, 2017 1:36 pm
Hi,

No it is not a free service as you will have to pay fees to your company which will come out of your monthly payment.
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Foggy
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by Foggy » Fri Jul 21, 2017 3:01 pm
As Kallis says, no it is not free --- but the fees come out of the payment you agree to make to your creditors, so, in effect, they are paying them not you (unless you manage to pay the full original debt during the IVA). This applies to the so called "charity" providers as well.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 24, 2017 8:36 am
No. All formal insolvency procedures will incur fees but are normally paid out of the assets and approved (and effectively paid by) the creditors.

The only way I can think of to deal with your debts for free is to negotiate informally with your creditors direct, which can be difficult depending on how many you have and your circumstances.
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Foggy
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by Foggy » Mon Jul 24, 2017 9:08 am
Lisa Thomas wrote:
No. All formal insolvency procedures will incur fees but are normally paid out of the assets and approved (and effectively paid by) the creditors.

The only way I can think of to deal with your debts for free is to negotiate informally with your creditors direct, which can be difficult depending on how many you have and your circumstances.



If you want a Debt Management Plan (DMP) as Lisa mentions, the so-called "charity" firms will do these free to you ---- they are funded by the banks for this purpose. But only the DMP -- they charge the same as everyone else for other solutions.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 24, 2017 1:34 pm
I wasn't referring to a DMP Foggy?
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kallis3
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by kallis3 » Mon Jul 24, 2017 1:42 pm
Sounded like it to me. Easier to let a company such as Stepchange do it so you don't have to go through the hassle yourself.
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Foggy
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by Foggy » Mon Jul 24, 2017 1:50 pm
Sorry Lisa, I thought you were referring to a DIY DMP type arrangement.
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Lisa Thomas
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by Lisa Thomas » Tue Jul 25, 2017 8:40 am
No a direct agreement with creditors without involving any third parties.
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Lisa Thomas
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by Lisa Thomas » Tue Jul 25, 2017 8:40 am
...which I guess is a DIY Type arrangement (!) but I didn't specifically mean a DMP as I thought they all had charges.
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kallis3
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by kallis3 » Tue Jul 25, 2017 9:09 am
If you use Stepchange or Payplan you don't have a fee and the only thing with doing it yourself is the hassle of dealing with multiple creditors and no guarantee they will agree to freeze interest.
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