IVAs and the army

Right, genuine answers please Ladies and Gentlemen:

One of my younger members of the troop is in a lot of financial trouble, l wont disclose how much but he came too me and was asking advice on debts and debt management.

I aksed him about cccs, he said he had tried them, was on a payment plan however creditors refused to drop interest, piled on the charges etc.

Now he is asking about wether to go down the IVA route.

As l am massively in the dark on this, and issues with army life etc, has anyone got any advice, pro's / con's etc?

(And before some smart arse quips back, no it's not me!! :))
Maybe worth giving the local CAB a ring they must deal with this issue an a daily basis.
One of my lads is on an IVA and he is fine, much better off financially and his mind is back on the job rather than worrying about mounting debts.

As far as the system is concerned, my OC has been fine - and certainly does not hold it against him. His debts are now well under controll, and although he will be paying them of for a long time, they are no longer un-manageable, which is the usual grounds for AGAI action.

I'm not condoning IVAs - i think sensible, responsible spending is the answer, but hey we can't all be perfect :D

Don't know what more info you are after really - hope this helps!

Many thanks MB.

All im after is guidance / experience of others, so l can advise correctly.

From what lve been told, an IVA does seem his best plan, but lm no financial guru!!
Refer him to a firm called "PayPlan"

My missus has an IVA with them. They could not be more helpful or professional honestly!

They don't charge fees, they get their cut from the IVA obviously, but he will not be charged. They were originally set up to help coppers who had problems and they really know their stuff. Most of the big firms know them and are happy to deal with them.

They'll see him right I'm sure.
The biggy with IVAs is that it is a payment arrangement (possibly an actual contract) between the debtor and creditors. They will work out how much the debtor can afford to pay taking into account income and expenditure. They will then take a set amount (of which the arranging company takes it's cut). The biggest plus point is that he will pay for 60 months and then any debts outstanding will be written off. Leaving him debt free. As far as I am aware the company setting it up will want to make sure the individual sticks to the plan because that is how they get their money - hence they won't leave him with no money at payday - although he will still need to be careful with his cash.

If he is going to take longer than 60 months to pay his debt off then he should certainly look into it. He can check with the company what they will leave him with. If he doesn't like it then he can still carry on as he is.
Horrid has it spot on.

Payplan were pretty generous when calculating your "needs" and my missus is actually better off each month than when she was trying to balance credit cards and "robbing peter to pay paul" etc.

They arrange a date for a phone chat (about an hour long) and ask that you have ALL your debts, balances outstanding, monthly costs (car, laundry etc) and work through it with you. They then send you a quote statement for you to agree. They then call a meeting of your creditors (or their reps). You don't have to attend but you need to be near a phone in case of queries. If 75% of creditors (usually those who have the biggest stake) agree the IVA then it becomes legally binding by court order, even if some of them refuse they are bound to the majority. This means YOU cannot default on it but, more importantly, your creditors are bound to it BY LAW so interest MUST be frozen and, as Horrid states, once the 60 months is up, Debt Cleared! he can then apply to the credit ref agencies to clean up his file as the 5 year note on his file starts with the IVA.

Be Aware though that the IVA can be refused. If he has a loan from say Northern Rock, they tend to refuse IVAs as a matter of course (although that may change very soon obviously). Most companies are happy to accept though. And, if it comes to it, tell him not to worry if any of his debtors sell his debt on to a collections company. They pretty much welcome IVAs as it does their job for them.

Hope this helps, bit rambling but I think I got everything.

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