Posts in the IVA category
It seems people are racking up higher amounts of debt before thinking about IVAs. In August, the average amount of debt accrued by people before they sought aid was £47,000, compared with £35,750 in June and £32,750 in May.
Organisations such as the Citizens Advice Bureau and the CML have advised people to talk to relevant companies as soon as possible about managing their debt, and the solutions that are available to them.
The Office of Fair Trading has warned 12 firms to stop making misleading claims to people who have declared themselves insolvent. The firms in question have been sending unsolicited letters to the reciepients to cancel their IVAs and to go bankrupt instead.
The OFT have also hreatened to fine or close down the firms if they do not stop their mailings. Scrapping an IVA could make the individual's financial position worse. It is expected that any advice given to debtors should be in their best interests.
Bankcruptcy is a much hasrher position to be in that claiming insolvency, with the threat if losing your home and any control you still had over your finances.
The firms have four weeks to respond and to change their advertising/marketing material.
