www.iva.co.uk

Hi there, I keep getting letters from various companies stating that they can help with my current IVA by potentialy negotiating lower rates, change in terms etc. What do you think of these types of claims? Is it possible to do this?

I'll admit that I'm not very clever when it comes to finacial matters that's why I got into debt in the first place. Then someone waved a magic wand and I now find myself in an linked IVA with my wife to clear my debts - I feel that I wasn't fully informed about the options etc and it is putting a strain on our marriage. These companies seem to claim that they could improve our IVA conditions - I really don't want to end up jumping out of the frying pan and into the fire.

Many thanks for any advice you can give.

If you're having diffulty with your IVA, the people to talk to are the people that arranged it for you, not junk mailers.

If you can show genuine reason why you cannot live with the budget that was originally agreed, then talk to your Supervisor. If you show them good reason, they can convene a meeting of creditors to seek to vary the terms of the arrangement, however, this would again require a 75% creditor majority, and also, many creditors have a policy to accept no variations to IVA terms within the first 2 years.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

I completely agree with Philip - and wish someone would do something to stop these people getting hold of names and addresses for people who are currently in IVA's. I imagine that there is not one properly qualified insolvency practitioner in any of them!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Can I just say Philip I've just looked at your website and it's very informative and user friendly.

Cheers, mate !

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

In the past 9 months I have been contacted by 4 different companies offering to complete my IVA early.
It's an absolute disgrace that these people are allowed access to the Insolvency Register to obtain personal IVA details, as if we debtors haven't endured enough stress going through the IVA process.
Bin the letters and name and shame these 'financial experts' on this Forum [:(!][:(!][:(!][:(!]

I agree, bin the letters. I wouldn't speak to anyone apart from my IP.

Thanks for your prompt responses. To be honest we find it very difficult to communicate with our IP as we seem to be isolated by the company that arranged the IVA.

We can afford the repayments - it's a struggle, but the I guess the part that worries me most is the remortgage clause during year 4. Can they require us to max out any equity in the property and hand it over? Several newsletters that I have received hint that this is a bad move - but I honestly don't know who to trust in all of this.

I admit that I probably rushed into the IVA due to mounting pressure from my creditors also the IVA company didn't offer any advice as to the alternatives. It was offered the IVA as a 'magic' and simplisitic way to solve my debt problems.

Call me stupid or dumb - I'm big enough and old enough to take it - but I signed up without realising the implications and I guess I trusted the IVA company to help me and act in my best interests.

Is the advice to ride it out and see what remains standing after IVA is over? or should I let someone have a look at my IVA and work out what it the impplications are?

Once again thanks for your assistance.

With regards to your property and the requirements of your IVA, I would ask if you could please post up details of the clause or modification. We can then get an idea of what is expected from you and advise accordingly.

The letters you are receiving from people claiming to be able to negotiate lower rates ... I'm afraid that is complete tosh. However don't be too hasty in binning the letter - it may come in handy if you wish to start a small fire.[:)]

As posted above, if you ever find that you are struggling to meet the payments in the IVA, the person to contact is your Supervisor. Under no circumstances should you contact anyone who sends out correspondence such as that you have received. Remember, if it sounds too good to be true, it probably is.

Tell it like it is.

Which IP company are you with?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I am with Debt Free Direct and the section from my IVA agreement is as follows:-

On expiry of 4 years from the date of commencement of the arrangement and no later than 6 months before the intended completion of the arrangement I shall commence steps to effect a remortgage of my equitable interest in (address)

Should my application be succesfull, I will authorise the lender to pay 100% of any net proceeds due to me from a successful application directly to my supervisor for distribution under the terms of the proposal.

Should a successful remortgage be achieved within the final year it shall be at my supervisors sole discretion to determine whether income contributions shall be reduced or waived for the remaining term.

It shall be at my supervisors sole discretion to decide whether I have done all that i could realistically be expected to do in order to effect a remortgage. If my supervisor considers that I have used my best endeavours to obtain a remortgage then in circumstances where I am unsuccessful, this shall not be viewed as failure to comply with the terms of the agreement.

That's taken directly from my IVA agreement - Is this a standard clause in IVAs? and what is there to stop my creditors taking more than they are owed and leaving me in more debt than before?

This modification requires you to get your property revalued during the final year of the IVA and raise a new mortgage based upon maximum borrowings. On the basis of present indications this is likely to be based on no more than 85% loan to value, and you will then need to pay over all of the monies raised from this remortgage to the IVA supervisor. The Supervisor then has discretion to determine whether you could afford to continue your IVA contributions into the future.

The clause is pretty standard - it's not the wording I would use but I guess the net effect is pretty similar. Creditors cannot be paid more than they are owed.

Just feel its a shame that you have to get professional advice from this forum, rather than from your own IP. But I guess that is what the forum is all about, and we are happy to help with any other queries you have.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Thank you for the comments - would you normally expect to talk directly with the the debtors you are dealing with? I have had no direct contact with my IP - everything comes thru the company and everything takes an eternity to get sorted - I guess because letters etc are sent to the company then forwarded to my IP - he then responds via the company.

I always speak to my clients to ensure that they have considered all options available to them and have understood the advice provided by my clients - and I meet a lot of them face to face as well.

That is the least that I can do as a professional, and if I were taking legal advice, as an example, I would want to speak to the solicitor dealing with my case, and not an office junior. Of course I have a team of dedicated staff to help me do the work both pre and post appointment, but my door and telephone line are always open if clients wish to speak to me directly.

I am not saying that my way is the right way, it is just the way that I feel that things should be done. Other IP's will have differing views of course.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Many thanks for your advice - I feel more comfortable with the situation now.
All the best.