The Bankruptcy Association
I recently came across the News Letter by The Bankruptcy Association. It was interesting to read the following passage:
“I have noticed in particular that most debt collection companies and agents are quick off the mark in offering reduced settlements for debtors who default on debt payments.
All this I hope has been to the better good of humanity. However, if that is the good news, whole new batches of financial sharks have entered the UK debt arena peddling junk IVA’s and other unhelpful debt solutions. Big business interests have moved into the death industry after spotting they could create a market from false hopes and promises to provide sensible debt solutions.
These people are interested in making money and lack any moral values whatsoever. One insolvency practitioner told me that if some people were so stupid as to fall for the IVA procedure (individual voluntary arrangement) then they deserve all they got.
This is typical of the attitude of an industry that spends a fortune trying to flog IVA’s because they are so profitable. This industry then even has the nerve to order themselves insolvency industry prizes for their achievements in flogging these schemes………….”
I have always been amazed at how much these IVA companies charge for their services. Only the other day I was approached by an IVA company asking if they could advertise on my site. They were offering something in the region of £400 per client that signed up to an IVA!
I personally have been dealing with debt for a number of years, to date I have never recommended to someone that they enter into an IVA. To me an IVA seems like an over extended bankruptcy, also if you own a property that too is very much at risk when you enter into an IVA. If an IVA fails (they appear to have a very high failure rate) you can still be made bankrupt.
If you are thinking of going into an IVA get as much advice as possible, and also establish if your property is at risk. If you are currently in an IVA get advice to see if there is a better alternative.