hi can you please explain how a company gets help in the pying for the part of my debt that i can not afford to pay back, is it a goverment rebate?how may this work? many thanks
I believe that the OP thinks that the banks receive 100% of the debt, 40% from the IVA and 60% from another source.
Doug, the banks receive their share of the IVA payments and write off the rest as a loss.
Given that in a case like mine with credit card debts built up over a long period, a large portion of the debt was interest then they are losing the profit rather than the actual money loaned.
Last edited by 31101932 on Sun May 23, 2010 11:14 am, edited 1 time in total.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The company will write the balance off against profit unless it is insured. All bank's build in bad debt provisions into their trading accounts, and thus expect that a certain number of accounts will not perform over the years. This is treated as an expense against profit.
MelanieGiles wrote:
The company will write the balance off against profit unless it is insured. All bank's build in bad debt provisions into their trading accounts, and thus expect that a certain number of accounts will not perform over the years. This is treated as an expense against profit.
So I can stop feeling guilty and ashamed, like a bandit?! (I did not set out to "defraud" anybody. Little by little my financial burdens all crept up on me; until one day recently it dawned on me that an iva will be my only hope.)
We are all doing what we can to pay our debts off.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
A lot of people like myself have paid significant amounts of late fees and compound interest on credit cards over the years plus doing a few consolidation loans on higher interest etc raised it up too. I would say mostly they have had their money back from me by now and are currently reaping some of their profit as well but if the IVA fails they won't see it that way and I will be back at square one so dedication to the end for me to get this off my back for sure.
