Churchwood / Kingsgate as IP- Are they OK?

[Dodo Donna]

Hi I am in the process of setting up a proposal of an IVA with Churchwood who sister with Kingsgate Insolvency. My advisor has been really helpful especially as I have called him with about 5000 questions due to the enormous anxiety I am feeling from getting myself into this pathetically hopeless situation.

I have already arranged a date for the pick of of my documents this week but I just wanted to check a few things before it is too late!

Churchwood have a £350 advise fee (I checked with the CCCS and they said that sounded normal to them). Thet have advised me to cancel all direct debits to my creditors. This month I will use that money that I didn't pay to my creditors to pay Churchwood. The advisor also said that it was ok to still use my credit but only for everday items such as groceries until the middle of this month when all creditors will then have been informed of the IVA.

Does this sound normal? My IP is confident that I will not get turned down but I have been doing alot of reading on various forums and read some horror stories of IVA's failing. I don't know what I would do if that happened to be honest as I am already at my wits end with everything! And to be then £350 down and have a backlog of defaults and back to square 1 after all that would be utterly soul destroying!

Any advise would be really appreciated!

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[kallis3]

Kingsgate have had mixed reviews on here in the past.

I'm surprised that you have been told to continue to use credit though, personally I wouldn't advise that.

I would give one or two more companies a ring, there are a lot who post on here who do not charge any upfront fees.

Visit www.iva.com for a list of companies and reviews. You will receive free and impartial advise about all the options open to you.

If you choose a firm who do not charge upfront payments, you could use the money saved from not paying your creditors to fund your monthly payments.

[MelanieGiles]

You should never be advised to continue to use credit sources once you have recognised that you are insolvent - and I am not sure what they mean by an advice fee! They will be paid a nominee's fee for acting on your behalf, so it would be well to confirm that the "advice" fee will be deducted from the nominee's fee.

If you weren't having to pay the "advice" fee, you would presumably be able to pay for your groceries without using credit.

[size5]

I heartily agree.

Churchwood will take 2 upfront fees from you before they pass you over to Kingsgate, who are their own Insolvency arm. If the IVA is approved then you will have paid 62 payments instead of 60, and if it isn't then you have lost the 2 upfront payments, at which point they will, like as not, pass you back to Churchwood for a Debt Management Programme, at which point you may have to pay some more upfront fees.

The question as to whether you should have been encouraged to use further credit doesn't really need answering, I suspect you know that it would be wrong to do so once you have realised that there is a problem.

Moral of the story? Don't EVER pay upfront fees for an IVA, go direct to an IP, peferably via www.iva.com where you can have a look around, read reviews etc. Most IP's will not expect you to make payments prior to an IVA being approved, and those that do will refund in the event of rejection, so don't be afraid to ask what happens to your money in the event of rejection.

Regards.

[Dodo Donna]

Hi,
Yes size 5 I did think that it was wrong that it was ok to use my credit still and although I have to say the chap I spoke to was really helpful and informative I did think that sounded wrong and it has made me suspicious.
I have already given them my card details but I am going to call them tomorrow and cancel as the payment is not due to come out until Thursday. I am also going to try to cancel it at my bank. I think that I need some time to investigate this more thoroughly and look at my options.
I have also filled out an online form for Melanie Giles as she is so highly recommended here.

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[Dodo Donna]

Also I am now wondering why the CCCS did not tell me anything useful..they said that it was normal for SOME companies to be charging up front fees and they didn't even mention that I could be dealing with a DM comp that charges to to put me in touch with and IVA IP. At that point I did not know Churchwood charge to pass me on to an IP that I could have gone to for nothing! That is a bit of a worry.
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[kallis3]

Melanie does come very highly recommended on here, and I am sure that they will get back to you soon.

I certainly wouldn't pay fees if I could help it, but some companies who do that do provide an excellent service.

I wouldn't use Churchwood though.

[Shining]

I couldn't agree more that Melanie and her team are a very good and hopefully when she gets back to you she'll give you some good clear free advice and you'll then find a way forward for yourselves. All the best and let us know how you get on won't you?