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Posted: Sat May 22, 2010 10:32 pm
by doug.m
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
Posted: Sun May 23, 2010 2:19 am
by Daveyboi
Sorry I don't understand the question could you elaborate a bit more?
Posted: Sun May 23, 2010 10:29 am
by 31101932
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.
Posted: Sun May 23, 2010 11:10 am
by kallis3
I think you are right 31101932.
Posted: Sun May 23, 2010 11:43 am
by Adam Davies
Hi
In think any debt loss is written off against corporation tax liabilities
Regards
Posted: Sun May 23, 2010 1:29 pm
by MelanieGiles
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.
Posted: Sun May 23, 2010 1:38 pm
by Harry Wake
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.)
Posted: Sun May 23, 2010 2:37 pm
by kallis3
You should never feel guilty.
We are all doing what we can to pay our debts off.
Posted: Sun May 23, 2010 3:10 pm
by Daveyboi
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.