I got home today to find a letter from the insolvency service (via my IP re the above) Has anyone else had one? It all makes sense but for the benefit of all here it is:- (Please excuse typos). I hope this is of some use to people [:)]
Nice to see that they are starting to act against these companies.
To whom it may concern
The Insolvency Service is aware that a number of people currently in an IVA are being approached by organisations claiming that the IVA may have been mis-sold, and in some cases suggesting that they should cease making payments under the IVA.
IVA's are operated by licenced IP's who are subject to a rigorous regime of regulation. The professional standards required of an IP requires them to explore all potential debt resolution options with you prior ro organising an IVA. You should have received from your IP a booklet entitled "Is an IVA right for me>" and this should have given you useful information when making a decision as to whether to choose an IVA as the option for you.
If, despite the above, you consider that you may have been misled when choosing the correct resolution option, then the correct course of action for you to take would be to raise the matter with your IP in the first instance, using their complaints procedure. If this does not produce a satisfactory outcome from your point of view, you have the option of imforming the IP's licensing body who will decide on the appropriate action to take. Your IP will give you the details of his licensing body on request or you can find this information on The Insolvency Service website at
www.insolvency-service.co.uk/newipsearch.
You should be aware that by entering into an IVA you take on certain obligations and breaching those obligations could have serious consequences for you. You should therefore always think carefully before deciding what actions you should take.
The principal statutory alternative to an IVA is Bankruptcy. Bankruptcy is a very serious matter as you will lose control of all your assets and will be subject to bankruptcy restrictions, in certain circumstances for up to
15 years . These includerestrictions on your ability to obtain credit, and there may also be an impact on your employment. For these reasons bankruptcy should
always be a last resort after all other options have been considered.
Consequently, the IS
does not condone any implication that people in IVA's should stop paying and enter bankruptcy. If you have had any communication suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action.
) thought that would be the case. Good stuff 