Phil MeekinView Profile
The Debt and Insolvency industry has more than its share of cowboy operators. A recent scam has involved targeting people who have just entered an Individual Voluntary Arrangement (IVA).
The Debt and Insolvency industry has more than its share of cowboy operators.
A recent scam has involved targeting people who have just entered an Individual Voluntary Arrangement (IVA). This is a perfectly legitimate, legally binding arrangement by individuals with the companies to which they owe money. It frequently involves a repayment programme. The creditors often accept less than 100% of what is owing to them. However, they are still better off than if the individual enters bankruptcy. This is a means of helping the individual out of financial difficulty.
The scam? Unscrupulous “advisers” are approaching these individuals and talking them into bankruptcy and charging a hefty fee for completing the paperwork.
There are situations where bankruptcy is more appropriate but each person’s circumstances are different. A good adviser will point them in the direction of the most appropriate solution. If bankruptcy is the suitable, most people could complete the forms themselves. Unless, they are hampered by literacy problems or by a disability.
So, as most people are unfamiliar with available alternatives, and they’re likely to experience stress in the situation; how do they know where to turn for sound advice? The answer is to make sure you are speaking to a firm of Licensed Insolvency Practitioners. These are not only well-qualified experts, they are also heavily regulated and can lose their licenses if they step out of line.