Hey all,
Probably a dumb question, but I've heard loads of radio ads recently for companies who say they can get up to 75% of people's debt wiped off due to government legislation. I'm just curious, but how does it work, and what's in it for them. It doesn't sound real to me.
BTW, I'm not in the market for having debts paid off, unless someone wants to pay my mortgage ;)
Cheers for input
S.
They're IVA arrangers, I assume. I'm quite a big fan of IVAs since bankruptcy became such an "easy" option under the new regs. With bankruptcy, the lender loser everything and the debtor faces a relatively easy ride (compared to the old system anyway).
With IVAs the lenders lose out because they don't get most of their money back. Serves them right for relaxing their standards so much in the first place. But the debtors also lose out because they have to pay back something to the bank and quite a lot to the IVA arranger in fees.
AFAIKT the only reason to get an IVA is if you have a house and don't want to lose it. I may be missing something(s). :-)
Andrew McP
Can't bankrupts keep their homes these days?
I've read of people being bankrupt 3 times and still being able to get a mortgage. Or even people who've kept their home. How on earth does that work?
Somewhere the world has gone mad. What is the incentive for people to work hard and save for something when they can take part in this process which clears their debt for them.
The property is in their partners name?
You are. ISTM that no-one is going to let you have an IVA if they can reposess the house instead. Remember that one of your debtors will be the mortgage company.
ITYF that IVAs are only for people with no house to lose.
BICBW
tim
tim
I think the key words are 'up to'.
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