Posted: Sun Dec 23, 2007 11:31 am
Do I detect a subtle change in IVA's?.. First they were more or less straightforward, then Northern Rock (and others) raised the bar to c40p in £, this caused a number of IVA's to fail as the debtor could not raise the required to meet 40p in the £.
Bankruptcies followed resulting in the remaining creditors who might have supported a lesser return getting very little - or nothing.
Then we see IP's putting forward perfectly researched and honest offers which are turned down by some creditors as being 'artificially inflated'. [due to unscrupulous IP's not doing their job) The IP tries his best but as the Debtor cannot raise the required amount, they go bankrupt.
Then we see Companies acting on behalf of Creditors trying to squeeze the maximum (and more) from the Debtor - well the more they squeeze out of the debtor the more they get. The Creditor goes bankrupt.
Then we see debtors agreeing to an arrangement which they have no hope of keeping to, they have five long years living on a pittance, so the attraction of going bankrupt has it's attractions..
Debt Repayment Programmes? could take decades to pay off and the real possibility of interest being added always there, causes worry and stress.. bankruptcies follow.
It seems to me the whole ethos of IVA's were/are good, but because of the combination of cavalier attitudes of low quality IP's and Creditors agents, the whole principle of the IVA is diminishing. Whether this is a knee-jerk reaction by the creditors to the forthcoming Simple IVA's and it's less involvement (Modifications etc) by them, it's 'grab it while you can'..?
Of course a great many IVA's run their course without incident, the IVA's and IP's rated on this site makes interesting reading, and to that I take my hat off to Mel.
We shall see what transpires with the SIVA's (whenever they appear?)..
Bankruptcies followed resulting in the remaining creditors who might have supported a lesser return getting very little - or nothing.
Then we see IP's putting forward perfectly researched and honest offers which are turned down by some creditors as being 'artificially inflated'. [due to unscrupulous IP's not doing their job) The IP tries his best but as the Debtor cannot raise the required amount, they go bankrupt.
Then we see Companies acting on behalf of Creditors trying to squeeze the maximum (and more) from the Debtor - well the more they squeeze out of the debtor the more they get. The Creditor goes bankrupt.
Then we see debtors agreeing to an arrangement which they have no hope of keeping to, they have five long years living on a pittance, so the attraction of going bankrupt has it's attractions..
Debt Repayment Programmes? could take decades to pay off and the real possibility of interest being added always there, causes worry and stress.. bankruptcies follow.
It seems to me the whole ethos of IVA's were/are good, but because of the combination of cavalier attitudes of low quality IP's and Creditors agents, the whole principle of the IVA is diminishing. Whether this is a knee-jerk reaction by the creditors to the forthcoming Simple IVA's and it's less involvement (Modifications etc) by them, it's 'grab it while you can'..?
Of course a great many IVA's run their course without incident, the IVA's and IP's rated on this site makes interesting reading, and to that I take my hat off to Mel.
We shall see what transpires with the SIVA's (whenever they appear?)..