Self Brokered IVA

[shinobi101]

My disposable income is less than the standard £200pm minimum to get an IVA.

 

Since a lot of what you pay goes in fees, is it possible to arrange your own IVA for a slightly smaller amount (say £100 to £150)

 

I've got 2 unenforceable credit cards, an overdraft and 3 loans one of which looks unenforceable.

[loobyloo85]

At some IVA companies, you would only need to pay in the amount you can afford each month. The creditors then agree to forego some of this money at the beginning of the arrangement to cover their fees, so you are not paying any more than what you can afford into the arrangement.

[PGH7447]

why do you need an iva, do it yourself, if the creditors or their pet dca dont want to deal then pay em £1 a month, they soon change their tune

[shinobi101]

why do you need an iva, do it yourself, if the creditors or their pet dca dont want to deal then pay em £1 a month, they soon change their tune

 

That's what I really meant, I'm looking for info on how to do it myself. That is better both for me and the creditor.

 

The most important part is to get the balance written off after a fixed time, ideally 3 years as that's how long I expect to have job security for, but no more than the standard 5 years.

 

Whilst I do have a job, I don't have overtime any more and my wife's no longer working, hence the difficulty with the debts.

[PGH7447]

IVA's run for 5 years anyway, at least doing it yourself you can se if there are things you can claim back or dispute

[shinobi101]

Thanks PGH, I'm totally in favour of doing it myself. What I'm looking for is something that tells me how.

 

I'm looking to get the banks into a binding agreement where I pay a bit for a few years and they write off the rest. They would only get a fraction of what they want, but more than selling it as junk debt.

 

I've disputed a lot, and still am.

 

Amex - Unenforceable, defective DN. They can only say yes.

 

The rest is within Barclays group.

 

Barclaycard - no cca.

 

Loan 1 - arguably unenforceable. They argue internet application, but they insisted on a signed paper agreement which is unforceable.

 

Loan 2 - 2008, e-signature, default notice received late.

 

Loan 3 - 2008, e-signature, payable.

 

Overdraft - Disputed charges. (Barclays reserve charges, not agreed, extortionate)

Edited March 5, 2010 by shinobi101
additional info

[WelshMam2009]

I thought you had to have an Licensed Insolvency Practitioner to administer an IVA for you??

[shinobi101]

I thought you had to have an Licensed Insolvency Practitioner to administer an IVA for you??

 

I don't know, although it would be good to have that confirmed.

 

If not a formal IVA, then can I negotiate an agreement with all my creditors, including the one's I'm not legally obliged to pay, that would achieve the same goals as an IVA, i.e. part payments then the balance written off.

 

I don't know if I can for this, or how to, but it seems like a good idea. TBH the ongoing disputes are quite draining, and in some ways I'd rather form some kind of mutually acceptable agreement than carry on arguing, which is why I'm exploring this possibility.

[diddydicky]

as PGH says- do it yourself- it is easy to explain to them that by accepting the payments directly from you (standing order NEVER DD) that you can pay them off quicker than if you were going through an agency who were taking a cut

[PGH7447]

when we say do it yourself we mean set up agreements, you dont have to be a licensed anything

[PGH7447]

Thanks PGH, I'm totally in favour of doing it myself. What I'm looking for is something that tells me how.

 

I'm looking to get the banks into a binding agreement where I pay a bit for a few years and they write off the rest. They would only get a fraction of what they want, but more than selling it as junk debt.

 

I've disputed a lot, and still am.

 

Amex - Unenforceable, what agreement? if yes stop paying them defective DN. They can only say yes.

 

The rest is within Barclays group.

 

Barclaycard - no cca. stop paying them

 

Loan 1 - arguably unenforceable. They argue internet application, but they insisted on a signed paper agreement which is unforceable. Ditto above

 

Loan 2 - 2008, e-signature, default notice late. make arrangement

Loan 3 - 2008, e-signature, payable. as above

 

Overdraft - Disputed charges. (Barclays reserve charges, not agreed, extortionate)claim them back

 

there sorted - and not a licensed iva manager in sight:D

[WelshMam2009]

when we say do it yourself we mean set up agreements, you dont have to be a licensed anything

 

I agree you can self administer a DMP or other agreement, which is what I did. However, you definitely have to be licensed to broker an IVA.

 

I'm not a fan of IVA's anyway Shinobi but I don't believe you will necessarily achieve your objectives in their entirety...

 

If not a formal IVA, then can I negotiate an agreement with all my creditors, including the one's I'm not legally obliged to pay, that would achieve the same goals as an IVA, i.e. part payments then the balance written off.

 

Firstly, the debt exists, even if it's not enforceable in court, and the creditors will record adverse data on your credit file.

 

Where no or an unenforceable CCA agreement has been supplied then I agree, you should stop paying them.

 

Some creditors such as MBNA are keen to offer "short" or "partial" settlements, as opposed to full and final, which can be advantageous but you run the risk of them coming for you at a later date. I would advise against this although those who have settled seem happy enough...but it's early days yet!!

 

Firstly, you need to get interest and other charges frozen on your accounts. I achieved this several years ago by advising them of my financial hardship and supplying income and expenditure details. However, all disposable income is then paid to your debtors on a pro-rata basis. Just ensure you include all debts, even those that you are not paying.

 

The only way I believe you will achieve your objective of having the debts "written off" after a specific period is to negotiate a full and final settlement with your creditors, payable over a set period of time.

 

My concern is that you have 2 loans taken out in 2008 and therefore, these agreements are regulated by the Consumer Credit Act 2006, not 1974. Section 15 of the 2006 Act repealed sections 127(3) to (5) of the 1974 Act which means that a court has the power to determine in its discretion whether agreements are enforceable in accordance with section 127(1) and (2) regardless of the breach in question.

 

I'm also unclear as to what you mean when you say that the default notice for loan 2 was issued late?

 

I would also check out the recent case of Carey when assessing if your agreements "contain" the prescribed terms or not. A lot of people think Carey only applies to s77/78 applications whereas, some fundamental principles were agreed in respect of s61(1)(a). PT explains this here...

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/250212-costs-if-you-lose.html#post2806467

 

Best of luck!!

[shinobi101]

Thanks to all for the advice so far.

 

Just for clarity I stopped paying everything between March and May last year. Amex wouldn't negotiate, or accept my new address, so after a few arguments with Newman & co they gave up.

 

Barclaycard used their "right to set-off" to steal from my savings account. The payment they took was the last one they got.

 

Barclays let them take it. I had a new current account by the end of the next morning. I thinks Barclays are getting fed up with not being paid.

[WelshMam2009]

This is a good link regarding full and final settlements but assumes that you have a lump sum in order to make the payments. Your difficulty is that you want to pay a reduced sum over a period of time and your creditors have to assess if this is in their best interests.

 

National Debtline England & Wales | Debt Advice | Factsheet 24 Full And Final Settlement Offers

 

There are various factors that will strengthen or weaken your bargaining position such as assets...do you own your own poperty and is there a lot of equity in it? Enforceability of agreement and/or other potential flaws such as defective default notices etc. Also, if you haven't been paying, how close are you to the 6 year statute barred threshold...not really relevevant in your case it would seem Shinobi.

[shinobi101]

An IVA is not what I want. What I want is a legally binding F&F to be paid over years instead of as a lump sum. (I don't have a lump sum) My credit file is trashed to the point I can't get contract mobile broadband. Don't care (much)

 

Some creditors such as MBNA are keen to offer "short" or "partial" settlements, as opposed to full and final, which can be advantageous but you run the risk of them coming for you at a later date. I would advise against this although those who have settled seem happy enough...but it's early days yet!!

 

Problem here is they can come after you for the balance because part payment is not good consideration to forgo the balance.

 

An exception are composition agreements where a group of creditors accept a reduced settlement, none can sue for the balance as this would amount to fraud against the others. This is what I had in mind with the "sort of IVA" thing.

 

The other exception is part-payment by a third party; if they sue for the balance it would amount to fraud against the third party.

 

I'm also looking at the principle that consideration need not be adequate, but must have some value. I am thinking of offering one silver coin for each debt as consideration to forgo the balance. So it would be part payment plus one silver coin.

 

The only way I believe you will achieve your objective of having the debts "written off" after a specific period is to negotiate a full and final settlement with your creditors, payable over a set period of time.

 

You actually explained what I want better than I did:)

 

My concern is that you have 2 loans taken out in 2008 and therefore, these agreements are regulated by the Consumer Credit Act 2006, not 1974. Section 15 of the 2006 Act repealed sections 127(3) to (5) of the 1974 Act which means that a court has the power to determine in its discretion whether agreements are enforceable in accordance with section 127(1) and (2) regardless of the breach in question

 

This is one of the reasons I don't want to go to court.

 

I'm also unclear as to what you mean when you say that the default notice for loan 2 was issued late?

 

Received late. I'll edit that for clarity. The default notice arrived later than it should have done, leaving me about 12 or 13 clear days to remedy the breach, instead of the required 14.

 

I would also check out the recent case of Carey when assessing if your agreements "contain" the prescribed terms or not. A lot of people think Carey only applies to s77/78 applications whereas, some fundamental principles were agreed in respect of s61(1)(a). PT explains this here...

 

Thanks, I'll have a read:)