Can I just say that this forum is brilliant. I have found so many things out and have had numerous questions answered on here - thanks to everyone especially the IP's!
Once again I am looking for some independant help from you guys and girls if you don't mind?
Right, here goes .....
I've been in an IVA approximately 18 months and never missed a single payment. At this stage I do not want to mention who my IVA is with.
Earlier this week I was approached by one of these financial companies who attempt to write off your credit cards, loans etc that were issued prior to April 2007 via some sort of loophole. To cut a long story short I exaplained I was in a IVA to which the gentleman said it wasn't a problem. He took some details from me regarding my creditors etc and returned the next evening and told me his company can write off ALL my credit cards and loans which equates to approximately £35,000 but to do it I would need to come out of my IVA and enter into a DMP.
He asked me to sign some forms and stop making payments into my IVA immediately and this "new" company would speak to all my creditors and set up the DMP. He then asked for two monthly payments to be paid to him up front which totalled £1176 and following this a standing order would be setup. This evening I got a phone call from my IP who as you can imagine was very disgruntled as I had cancelled my direct debit to them and they obviously wanted to know why.
I explained all of the above to them and they warned me of the concequences for proceeding with the DMP.
I suppose my questions are:
1.) Can I break out of my IVA to enter into this DMP and then have all my cards / loans wiped off? I really think not but this company approached me and said it could definately be done and if it couldn't I would get all my money back that I had paid them.
I know I'm coming over as being greedy wanting all of my cards etc paying off using some loophole in the financial system but I think most people would do this if they could.
2.) If it is posible would I have to fail my IVA first? But if this is the case surely my IVA company can file for my bankruptcy?
3.) I was made redundant from work at the end of April this year but I have been paid a £4000 bonus for staying on to assist the company until the end of Sept. I know this is classed as a windfall and my IP will want this money but I have had no luck in finding a new job. Will they allow me to retain my redundancy money & bonus as long as I keep paying my IVA monthly payments?
As you can see come end of Sept I am in a terrible position - no job and all my redundancy money has to go to my IP. Surely that cant be right? what do my IVA company expect me to live on? £64 p/w job seekers allowance?
I am really stuck as to what to do here. I am at the crossroads and I simply do not know which way to turn. I'd be ever so grateful if anyone (expecially the fantastic IP's who post on here) could give me some advice.
I've had a really good relationship with my IVA company (who post on here very frequently) and I don't want to start upsetting them but there again this "other" company who approached me said if I stick with the IVA I will loose everything. They said their method is my only option if I want to clear my debts and retain my redundancy money etc. Please do not get me wrong, I am fully aware of my obligations to my IVA company and I am being very honest with them. When I explained my situation to them tonight they said I should seek independant advice and come back to them with a decision.
If anyone could help me I would really really appreciate it.
Hi Andrew,
Sorry to hear you're having problems.
First of all I'll state up front that I'm no expert in this field but certain things jump out just based on commonsense:-
1. A loophole that allows all your pre-Apr07 debt to be wiped off sounds to good to be true - as you're already suspecting it probably is too good to be true.
2. How many reputable companies go around cold calling and ask for payment up front from people who clearly don't have the means?
3. Check your arrangement but quite often only part of a windfall needs to go towards your IVA - maybe slightly more than half will be yours to keep.
4. You have spent 18 months in your IVA already and you now risk all of that based on a telephone conversation with a cold-caller.
5. If you're on benefits then a DMP is probably not going to be appropriate anyhow - based on the understanding that I've gained so far of DMPs.
Hopefully the experts on here will be able to advise you properly but I can't help but feel you're being scammed. You might be able to be given payment breaks until you find employment - your IP has probably seen this before and will know how to handle it. Coming out of the IVA could mean the loss of protection that you probably need right now while you get things sorted out. Just make sure that you don't break the terms of your IVA until you're 100% sure that you're doing the right thing.
Good Luck
Kenny
Hi Andrew,
I,m new to this forum too and have found alot of the posts and info on here very useful. I'm no expert but Please don't do anything rash - all sounds a bit weird to me. We've had alot of calls and info sent to us through the post regarding miraculous ways of getting rid of debts by stopping IVA payments etc. We sent all we had into our IVA company for their info. As risingtide has said wait for one of the experts.
I get two or three calls a day off these companys and i just let them talk for a while then tell them no thankyou. If they want to waste money cold calling me let them. Im stopping where iam in my iva. They didnt bother calling me three month ago when i was on a dmp its only since ive been in an iva.
I've heard of these companies before through my sister. She paid the up-front fees that they asked for about 6 months ago and hasn't really heard anything since. She phones them and they say their sorting it - she's still waiting. I personally think that she's wasted about £1200 of her money that could've gone to an IVA.
Do you have any assets, if not perhaps you could try for bankruptcy?
I'm sure one of the IP's will be along soon to give you some proper advice.
Don't touch these companies with a ten foot barge pole. They're not interested in you, just how much money they can make from you.
If your IVA fails, then you will be back to square one, the chances of you having your debt written off is slim, you will have paid money you can ill afford to pay and for nothing.
If you are happy with your IVA, then stick with it. You can hold your head up high and say that you are trying to pay back what you borrowed.
You won't lose everything with your IVA - you will come out the otherside debt free. Ignore them.
Personally speaking, if you try to use this 'loophole', it is debt avoidance. We took out the loans, and we should try to pay them back.
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
Hi Andrew,
If you have lost your job your IP can help nad give you a payment break until you find another. If you hand this money over to one of these companies and it goes wrong you are worse than back to square one.
How are you expected to fund a DMP on Jobseekers so creditors will pursue you once your IVA is failed. This will lead to phonecalls ,letters and possibly charging orders if you have a property. You have a perfectly acceptable and legal way to be debtfree. Do not throw that chance away.
hi andrew i echo jan and micheals advice,and if the worst happens where you are declared bankrupt ,the transition from your iva into bankruptcy will be a lot smoother with the help of your ip,rather than going it alone at throwing good money after bad to a cold caller.pulling out of your iva,without proper guidance from your ip will cause you alsorts of problems with your creditors.dont forget your iva gives you a lot of protection.your ip is best placed to help you.
Andrew doesn't seem to be having problems with his IVA so I would let that continue.
You would not find many posters on here who would be happy to 'write their debts off', firstly because there is no proof that this has actually happened to anyone, and secondly because they feel a moral obligation to pay back as much money as they can.
As regards redundancy money, you should be allowed to use that to fund normal expenses whilst you seek further employment, I'm sure that most creditors will accept this. Once employment has been secured, then anything left will be paid into the IVA. You can also ask for a payment break.
Speak to your IP in the first instance.
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
We had a similar thing with an alledged "write off" company - even though our house was excluded from the IVA they said our IP had made a serious error because the creditors can put it into the IVA anytime they wish. My husband directed them to his IP and, as far as I am aware, they have not followed that direction. They speak rubbish but they could disturb alot of people.J
I think that you have received absolutely appalling advice, and that this company should be reported to the OFT.
You are obviously not happy with the IVA you are currently in, or the concept of paying your creditors back over a realistic period. In the circumstances, you should discuss your options with the one professional, qualified to give you appropriate debt advice - ie your own insolvency practitioner.
And anyone who has the moral courage to call me to state to me directly that I have made a "serious error" in my advice to you is very welcome to elv5 - but somehow I doubt that anyone will!
I would like to be a fly on the wall with that conversation Mel!
Problem will always be the same with those companies. People who post on here can ask and we will tell them - others haven't a clue and think they are being given a chance to start again, and it doesn't work out like that.
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
I am getting really fed up with reading about these ambulance chasers Jan - who can set themselves up in business with absolutely no qualificiations of experience whatsoever.
I dislike firms who prey on vulnerable people who have no idea that they are being conned and will end up shelling out money they can ill afford.
What a pity it can't be made illegal.
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
Hi Andrew, This is the first time i have responded to any posts on here, i am a new user but i have to tell you what i know about these companies that use the "loophole".
There are talking about the challenging of legally unenforceable debts. and they could be right! before a certain date there was strict provision in the law to make sure that things were set up properly and signed etc and the vast majority of credit arrangements at this time were probably flawed in some way. - Particlularly if you arranged your credit agreement over the internet.
There are a number of companies who have sprung up in the last 12 months who claim to wipe your debts for you. They do this in one of two ways - they will take on your case for a fee - collect all your paperwork and find a number of ways the agreement can be challenged and then take the case to court. (if you are not paying then you will still be collecting your defaults, etc and damaging your credit file). The other way i have heard of is that they offer to buy your debt from you, (in the same way that a company can sell your debt to a debt collector) they charge a higher fee for this as the liability SUPPOSEDLY transfers to them and then they challenge the agreement again. The agreement i have heard cannot change to them - you will continue to be persued!
The scariest thing i know about these companies is the way they do business. I personally know someone who has started working for a firm like this and has no legal training, no financial background (apart from a debt history of his own and no credit rating)and they are entirely unregulated and untrained and targeted on sales!! There is no way on earth that people should feel comfortable funding this terrible industry. They are clearly preying on the very vulnerable (i have also read that even if you hand over your money and your case progresses to court some judges are now holding their cases waiting for a high court test case to go through)
I hope this helps a bit - there are ways to challenge your agreements but you should be able to do this without an upfront fee and i am not sure how this would work woth your IVA - get help from impartial people before you listen to any of the financial cowboys looking to make a quick buck from the vulnerable
