A reader asked: I have received a letter from my IVA firm with a cheque for over £2000, saying uncashed dividends had been returned by one of the creditors. They have said if I don't cash it in 90 days they will give it to a charity. Now I'm worried - What are these dividends and why would the IVA firm send them to me, surely it would be classed as a windfall? It says the creditor should … [Read more...]
Articles about IVAs
If you would prefer to see the important articles grouped in a helpful way (what to read before agreeing to an IVA, problems that happen in an IVA etc), you will find Debt Camel's Guide to IVAs useful.
IVAs are great options for some people, but they are too often "sold" as an easy, affordable option to people who have better alternatives for sorting out their debts. Do your research!
A reader asked: I've been told I have to give my IVA firm my online banking login details so they can see my bank statements. Why do I have to do this? Yet another thing they never tell you before you sign up. An Individual Voluntary Arrangement (IVA) can be a good debt solution for some people but it is a long-term formal legal contract which may not have been clearly explained at the start. Or … [Read more...]
A reader asked: We are desperate to end our IVA. So difficult. The IVA firm that seemed helpful at the start now after two years doesn't care about our extra costs. We have decided to sell and downsize. My wife is hoping for a discount but I said they were more likely to charge us more to get out early! We need as much equity as possible for the next house. This is a tricky situation. There … [Read more...]
In March 2017, the Court of Appeal decision in the Green v Wright case was published: Mr Wright's IVA firm was allowed to collect PPI after his IVA ended, even though he hadn't consented to this before his completion certificate was issued. As questions about this continue to arrive, I thought it would be useful to summarise the current situation: what is clear and what is less clear. The … [Read more...]
It is common where a couple both have debts for a interlocking IVAs to be proposed. The couple may think of this as being a joint IVA but legally it is two separate IVA agreements with a single budget - income and expenditure - and a single monthly payment being made. That may work well, but it's important to look at each person as an individual as well. There is no reason why both partners … [Read more...]
Mr D asked: I was contacted by company called Creditfix to clear my debts in an IVA. I have about £30,000 debt (two loans, some credit cards, overdraft) and the advisor calculated my options. I was told 2 and half years of paying £150 a month, then get a £4,500 loan to pay rest. Is that ok??? * I don't know if an IVA is a good option for Mr D. He needs to decide if he can commit to the IVA … [Read more...]
Here is the League Table for IVA firms last year, showing all firms that registered more than 500 IVAs in 2016. The data comes from the Insolvency Service, it was supplied to Louise Yates. I previously published a half-year table for 2016 - this article replaces that one now the information for the full year is available. The previous statistics for 2015 were discussed here. The up/down … [Read more...]
On 27 January the Insolvency Service published the data on insolvency in 2016. The number of people who became insolvent in England and Wales last year was 90,930. As the graph above shows, this has reversed the trend of personal insolvency numbers falling every year: the total for 2016 is over 13% higher than in 2015, the first time there has been a rise since 2009. Bank of England statistics … [Read more...]
A reader asked: I have received a letter saying we still owe £4,000 in council tax. The debt was included in my bankruptcy a few months ago but they are chasing my wife for the full amount, what should we do? This article looks at what happens to joint debts which are unsecured, not mortgages or secured loans. It covers all three forms of insolvency - bankruptcy, DROs and IVAs - because the … [Read more...]
This is a guest post by Nick Payne, a Chartered Accountant and Insolvency Practitioner who works for Payplan. Nick has over 20 years experience in Personal Insolvency. If you’re self-employed or own a small company and are struggling to pay your debts, you’re not alone. Recent research has shown that: those who are self-employed are more likely to have unmanageable debts than employed … [Read more...]