Different debt solutions do suit different people. Some people may choose long-running DMPs over an IVa or BR for reasons which are important to them. So it is vital that debt advisors present all the options and then leave the clients to decide which remedy best suits their life and future aspirations.
I was advised of all three options, given a booklet to read and sign (!!) and then I had to confirm I had been correctly advised and the decision to enter an iva was mine alone all before they would proceed with my IVA - so my firm were really thorough LOL!!! I thought everyone went through similar levels of checking and re-checking their decision. If not, it would be easier to rush into a decision.
Payplan possibly will go through all the options its the Guys who spend a fortune on newspaper adverts which usually wont,you need a few IVAs to get the costs of those adverts back. Terry has some valuable points here with experience to match. I have always thought an IVA was something someone could fall back on if bankruptcy was a bad deal, like if you were in business or had substantial assets to protect In bankruptcy you swop your debts for your assets and if no assets its a good deal you are at least repatriated from the debts in 12 months even the Government when the enterprise act was introduced realised that 3 years in bankruptcy was far too long so it was reduced to 12 months. I think five years now 6 years in an IVA in most cases is far too long to get repatriated from being insolvent,unless you have to. I understand the notion of wanting to pay your debts back to the creditors, the problem is the creditors pot has great big holes in it paying out billions in compensation whether it being PPI Bank charges, fines for fixing interest rates, with much more losses to come following up and coming enquiries into their affairs. Its a pity Bob Diamond the Ex Chairman of Barclays could not live the life of someone in an IVA who is paying all he has into his pot and the pots of his Golfing mates, just for six months maybe they would work to the value of their salaries
my thinking is this,if you have an iva with say £200 a month to pay,it all starts of fine,but as your rent/morgage/fuel/food/gas/electric/car insurance etc all goes up in cost with your wages staying around the same ,sooner or later your £200 a month iva looks very hard to pay,if a time comes when your wages are going up inline with inflation then ivas will work 100%,its a no brainer really isnt it,you can have your arguments about ivas being the best hope for people in debt and in 6 years youll be debt free,but we all know that your wages will not go up to allow that £200 a month to work ,that £200 will feel like £300 in a years time
never cment on me speling its rubbish and i didnt go to schola lot okk
made bankrupt 1st august 2012 at 10.00am
now disharged so bankrupt no more thank god im free of debt now
In all honesty Daniel...I don't know! I gave BR very little thought at the time and would certainly spend longer thinking about it!!
The two things which held me back (apart from my own outdated prejudice) and wanting to repay something were (1) I thought it would be easier to get a mortgage post iva and (2) I worked in financial services at the time and thought an iva would be viewed less harshly than BR.
In the three years since, my views about BR have changed, the underwritising status for BR and IVA is the same as far as I'm aware and I have managed to move out of financial services.
Daniel - we phoned Money Debt Credit initially and they were the people who told us that we should sell our car and that we had way too much DI to do an IVA.
We went with an excellent company for a DMP who did manage to get interest and charges stopped but, in hindsight, we should have phoned a lot more companies before making a decision.
Hence the reason our debts won't be sorted in the next 18 months but will have an extra 12 months added on.
We do actually pay less on the IVA than we did in the DMP.
I just don,t understand the selling of the car bit and having too much disposable income, if you sell your car you have more disposable income because no Tax Insurance MOT Service or petrol
Daniel - we didn't understand it either - the exact question was ' Would you guys consider selling your car'. It was a Skoda worth about 10k at the time which would not have made a dent in the debts.
The DI? We were told, after we had gone through all of our expenditure etc., that we still need to get rid of £200 a month. We ended up in a DMP because of that.
I wish we had found this forum them and we may well have been almost finished now!!
Harpic - I would love to see your creditors' faces at the thought of a debt advisor telling you to 'get rid' of disposable income!!!
Daniel - my views on BR have changed a lot over the past few years. It's probably maturity and realising how different peoples' lives are! And to a certain degree, accepting that getting into debt isn't the worst thing you can do and you don't have to punish yourself for it!!
