IVA's

[razamataz_]

Something sprang to my mind on reading various items on this subject of IVA.
[(#)]Myvesta Sean, mentions, he couldn't see how anyone on Benefits could be doing an IVA as it needs a regular income but seemingly even a person who is working is not guaranteed to always be in a job of work anything can happen, on the other hand Benefits depending on which they are and how long a person has been on them and take into account if a person is near retirement age anyway, and as it states it is for anyone so why should someone on Benefits if they have high enough rates and medically sure that it would stay secure be penalized in this way. DebtFreeDirect do them for people on Benefits sometimes as i was told by a friend of someone who was in this situation although do not know specifics of individual, but is disabled.
If there are not the assets of a house then i guess it wouldn't be accepted, at least people should be given the opportunity if they want to pay back in a secure way. As it is with Creditors ignoring evidence supplied by debtor in writing and continued harrassments, and increasing debt by putting on Interest, then folks are pushed into Bankruptcy against their Will really.

Lets face it Television keeps pushing the Adverts and the Loans and brainwashing people and children have access to it all so are brought up to see it as normal to be spending.

Debt Management Plans are only ok for smaller debts as otherwise can go on for unreasonable amount of time and not always is Interest frozen unless you could be lucky enough to find a Solicitor who these days don't want this work as it doesn't pay them well enough.

[;^)]Well rant over!
razamataz_

[Oliver]

People whom live entirely on benefits are just as entitled as everyone else to propose an IVA. Some creditors choose to decline these proposals on the grounds that a person should not be using their benefit money to pay for their debts as benefits are calculated to provide just enough to live on and do not have a provision to pay unsecured debt. The creditors could argue that it would be morally irresponsible to accept an IVA based only on benefits.

However, there are many forms of benefits so each case should be judged on it's own merits. If someone on benefits could face losing a home if they went bankrupt, could be a reason for the creditors to accept an IVA, or someone who was on a careers allowance looking after a disabled child. IVA's are available to anyone as long as they are insolvent.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[jamesfalla]

On the subject of benefits, remember if a benefit is only part of your income, then this should not cause a problem for an IVA application.

However, problems will occur when someone's entire income (or the majority of their income) is derived through benefits. There is no legal reason why someone in this position should not do an IVA. However, for some reason, over the past 12 months, many creditors have taken the stance that it is not morally correct.

In my experiance, these same creditors are quite happy to lend the money in the first place and then if difficulties occur, allow repayment using a debt management plan. I have tried to find the logic in this but can not!

My personal view is that there should be no reason why someone on benefits should not take advantage of the IVA legislation. However, it is the creditors who accept or reject IVA applications and they are not currently taking this view. I suggest that if your total income is benefits and you have nothing to loose (ie you are renting your property) then bankruptcy is the best course of action.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[razamataz_]

[:u]Many thanks to James Falla and Oliver i hope my questions assist other too.

I couldn't agree more that a Bank who has pushed monies onto someone who may be entirely living on Benefits and then is awkward with them when things turn bad have only themselves to blame-moreso when that Bank also throws in another Credit card for a grown up child who is not living at home-how can they do this,and get away with it, and credit card cheques and regular increases to card, and send two cards-fortunately didn't fall for that one![8~2]
raza