My IVA already costs £280pm .. now they want more
I’ve been in an IVA for a year with debts of £27,000 and the IVA Costs are £280pm, which leaves me with absolutely nothing every month. Now my IVA company is saying they got the numbers wrong and want another £70pm. How can this be right?
Precisely, it’s not right. The number of people we speak to who should have been recommended bankruptcy at the outset, is staggering. If you are living in rented and holding down an everyday job like the rest of us, an IVA is of little use to you. That’s because the primary function of an IVA is to protect expensive assets such as properties with equity and businesses. If you don’t have these things you have nothing to lose and bankruptcy is the solution. IVA companies make a mint out of exploiting people’s fear of bankruptcy. Once in an IVA a regular pattern emerges: it is extremely difficult to speak to anybody, there are constant reviews, there are frequent requests for bank statements and more money, and there is no understanding if things go wrong (pay cuts, illness, etc).
Did you know that the first 20 payments of any IVA go directly to the IVA company and not a penny goes to the creditors? The original creditors would have long since sold the debt to third party debt collectors anyway and are out of the picture. So why would you choose to remain in an IVA when you’re not even repaying the people you borrowed from? Many people struggle to meet the high monthly payments of an IVA when bankruptcy should have been recommended in the first place. It is far quicker and much fairer – the courts have no interest in making money out of you.