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Posted: Tue Jan 13, 2009 2:35 pm
by oioiboy
i spoke to a firm about my iva process yesterday.sounded ok 400 monthly with an initial fee to the firm of 500.spoke to another firm today who were alot more professional it seemed and thorough.they informed me with the info provided i wouldnt qualify for an iva i was 107 over budget on a monthly basis.
rang back my 1st firm who informed me that if my iva was rejected that the 500 fee was still applicable as they will be carrying out "debt management" on my behalf and it would take a few years longer to pay back the debt as none will be wiped.
in the debt management process does all the interests and charges stop?
Posted: Tue Jan 13, 2009 2:37 pm
by Lisa2009
No, creditors will be free to start adding interest if they choose to. You dont have the legal protection you would get in an IVA.
Posted: Tue Jan 13, 2009 2:39 pm
by Viki.W
Hey oioiboy, welcome to the forum. I think we've "met"!
A reputable company would not put an IVA forward if they didn't think it would be accepted. Be careful.
Posted: Tue Jan 13, 2009 3:41 pm
by freelili
A DMP can work if the total debt is repayable in a slightly longer than 5 years time period but only then if all the creditors agree to its terms. I was in a temp DMP but one of my creditors didnt accept it and gave me hell, the others were fine and agreed to stop all interest.
In short, one bad apple can turn the whole thing bad. Those that do accept will re evaluate the situation on a quarterly or half year basis too and as Mrs Skint says, you have no legal protection from calls etc. Although they would find it hard to take legal action against you as you are paying what you can and that would satisfy any court.
Posted: Tue Jan 13, 2009 3:48 pm
by kallis3
Ring up one of the firms who post on here, who all come recommended.
You can visit
www.iva.com for a list of companies with reviews, or visit the expert link on the left hand side of the page and contact one of the experts on there.
I would not be paying a fee of £500 to a firm, particularly when there are others out there who won't charge at all, not even for a DMP.
Posted: Tue Jan 13, 2009 5:26 pm
by MelanieGiles
Just as a matter of interest, what is your gut feeling about how much you could offer to creditors on a monthly basis, and how much do you owe to creditors? Also do you have any assets which would be affected by bankruptcy proceedings.
Posted: Tue Jan 13, 2009 5:29 pm
by Kazz
The figures in the initial quote are extremely different, ranging from minus to plus £400.00. Has one of the companies missed something off?
You need to be straight in your mind how much you can afford to pay to your creditors.
A lot of DMP companies don't charge any fees out there, so please do check out all of them and see what they all have to say.
Good luck
Posted: Tue Jan 13, 2009 5:33 pm
by Michael Peoples
Hi Oioiboy. I am interested as to why there is such a discrepancy between firms. I am wondering if you are self employed as some firms are unable to distinguish between personal and business expenditure and this causes confusion.
I agree with Melanie in wondering what you believe you can afford as ultimately only you knows for certain and will have to maintain the payments for 5 years.
Posted: Wed Jan 14, 2009 7:59 am
by David Mond
Posted: Wed Jan 14, 2009 9:59 am
by kallis3
Have you managed to sort anything out yet oioiboy? Be interesting to hear what any other companies have said.