There are some sweeping claims being made for IVAs out there in the debtorsphere.
They're not alone, but Debt Help Direct are claiming that "the interest on your accounts is frozen immediately" which gives the impression that you only need apply for an IVA and the interest on your debts is frozen.
Not true ! All of the lenders who can charge interest will continue to do so until the voluntary arrangement is approved by a creditors meeting and they have every right to do so.
If it takes a year to set up your IVA - it took eleven months to set up my moderately complicated arrangement - the lenders will keep charging interest even if they have stopped demanding repayments.
Example: If your debts include a bank overdraft then charges will continue at the current overdraft rate and if you are over the arranged overdraft limit you will also be hit for excess charges on a daily basis until the date when the IVA is approved by a creditors meeting.
The blunt truth here is quite simple. You may not even know what the total claims are against your IVA until all of your creditors have submitted their final proof of debt after the creditors meeting. That's the crunch time !
It is more than misleading for Debt Help Direct to post bullet points which suggest that interest charges are somehow magically frozen by some quick fix. It takes time to set up an IVA and the longer it takes the more interest you pay.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment