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IVA Mis-selling

Understanding Your Debt Options: What to Know About IVAs
Many individuals seeking relief from debt are aggressively targeted by online marketing companies selling Individual Voluntary Arrangements (IVAs). While an IVA is a legitimate, legally binding path for some, consumers should be fully aware of how they function before signing up:
    • Long-Term Commitments: IVAs typically tie you into an arrangement for 5 to 6 years, requiring rigid budgeting.
    • High Failure Rates: Statistics show a notable failure rate with IVAs; if an IVA fails, you may still owe your original debts alongside added fees.
    • Equity Clauses: Many IVAs require you to attempt to release equity from your home in the later years of the plan.

Always Seek Impartial, Free Advice First
Because I do not provide debt advice or options evaluations, I heavily stress the importance of speaking to an unbiased source before making a choice. Before committing to an IVA or deciding on voluntary bankruptcy, visit MoneyHelper to look closely at every option available to you.

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Google search results for the term IVA mis-selling

WHY are IVAs being sold, in preference to other debt solutions which may be more suitable, well

Google advertising and Facebook attract marketing companies who promote these solutions, You will be told “Government backed solution to reduce your debt up to 90%”. Well guess what the Government do not promote or encourage debtors to not pay their debts, imagine the fury from the banks if they did.

These companies, of which some are purely marketing companies look for eligible individuals to whom they can package up and sell on as leads to IVA factories for a referral fee often between £800 to £1100 pounds.

Over the years I have had calls from some of these companies telling me I could make three times my fee for doing no more than referring my clients to these companies, that is like selling my soul to the devil,I prefer to sleep at night

Remember the Claims management companies who sold accident claims leads to solicitors, this is much the same.

Google search results for the term IVA mis-selling

At present at least one in four IVAs are failing, five to six years is a long time penniless, the relief at the beginning when you are sold the IVA soon wears off when the practicality of being in one sinks in.

Many do not know, it is not until you make the final payment in an IVA that debt is satisfied, while in the IVA you still owe your debt in full, but now thousands of pounds in fees are added to the debt which you are responsible in paying.

I have seen debtors in an IVA inherit a property or a sum of money, during the term of the IVA lose their inheritance to the supervisor of their IVA, of course it is proper and correct that creditors are paid if this happens but you will also have to pay several thousands in fees even when the IVA finishes early.

Anyone who enters the IVA who owns property should study the equity release clause in years four or five where they will be expected to introduce funds into the IVA from the equity in the property.

Nowthat may or may not seem like much at the point of entry into the IVA but take the average increase in property say 4% per annum over the next 5 years by increasing a £200000 property to £243000 at the time of release, creditors will expect some of this equity before you are released from the scheme.

As with all debt solutions there are positives and negatives, go to an IVA company for debt advice you will be given an IVA,

I only provide a Full Bankruptcy Application service, I do this when the debtor has decided this is the route they want to go.

For debt advice you should only go to Moneyhelper a free impartial debt help agency who only have your interests at heart to ensure you are given the full picture of all debt solutions so you are on the right track to debt recovery from day one.