Tuesday, Jan 30, 2007
Banks refusing IVA settlements rocks IVA sector
TimesOnline: Pressure on third IVA firm as sector is hit by near-panic
The booming business of individual voluntary arrangements (IVAs) has taken a hit over the last few days with share values of companies operating in the sector being badly hit. An IVA is a less painful alternative to personal bankruptcy.
The reason the IVA sector is being badly hit is due to banks demanding better terms on the IVA and are refusing agreements which allow customers to walk away from a high proportion of their debt.
Posted by denzil @ 10:35 AM (39 views) Add Comment
6 Comments
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1. paul said...
What a subtle irony it would be if one of the IVA firms went bankrupt!
2. holding out said...
Perhaps they could sell themselves an IVA and thus keep going. It would be a microcosm of the Great British economy.
3. harold said...
holding out - that's very funny.
4. george monsoon said...
Well it was just a matter of time before the banks thought, "hold on a minute, thats not right!"
People saddle themselves with debt and then walk away from most of it scott free.
Great news for those of us wanting a way into the housing market. Bad news for the likes of NoHPC..
What I want to know is... The bad debt that is written off, has to be re-absorbed somewhere, so who pays it?
5. tyrellcorporation said...
Ultimately we all do, hence First Direct trialling bank charges again. If figures show there hasn't been a wholesale exodus from FD, the rest of the banking sector will follow.
6. Orwell said...
Perhaps someone should tell these people who take out IVA's to go to the CAB. I worked there til I went to be a solicitor. It's magic! The CAB on your side , a good financial statement showing what you can actually afford and your out goings and incomings and therefore what the banks should not have leant you and ... hey presto ... a great deal of debt is immediatley wiped off, the rest interest free over agreed terms (PS often the financial instituions (gurus?) prefer to claim off their insurance policies! )
This is not intended to give advice and comments are made without responsibility. If you need advice you will need to see the CAB , a solicitor ... (better still a financial adviser or mortgage broker who seem to think they know as much? lol )