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Bad Debt Advice Cost Me Inheritance

When I managed to get into around £30,000 of debt and I was borrowing more money each month just to survive I realised i had to seek debt advice. I called a debt advice company who took all my income and outgoings information before telling me i was suitable for something called an IVA. They explained the IVA would allow me to repay the debt over 5 years and any debt still outstanding at the end would simply be written off. This sounded like the perfect debt solution for me because I could continue to work, earn money and avoid entering bankruptcy.

Entering An IVA

IVA Debt AdviceI signed all the necessary documents and began making my payments into the IVA without having any problems, I truly thought this was a great solution. I was told some of the consequences of the IVA such as it affects my credit rating, will stop me borrowing money and I could be made bankrupt if I fail to pay. It wasn’t until 2 years into the IVA I was suddenly told any additional money I receive would have to be paid towards the debts including fees.

Bad Debt Advice

When I received the debt advice I was told any additional income would be paid towards the debt but never was inheritance or IVA fees mentioned. When my mum died 2 years after i started the IVA I received £20,000 from her estate which i planned to use to pay off my debt solution. I was told the all the money had to go towards the debt and the fees incurred for managing the solution which i found to be extremely unfair.

I felt an agreement was in place over the amount I would have to pay for the IVA and this was changed, which I didn’t know could happen. To make matters worse had I been warned prior to entering the IVA that I could been due to pay inheritance I wouldn’t have entered it. I knew my mum was poorly and there was a chance she would die while I was in the IVA so I would have been better off waiting and just paying my debts.

Although I was told additional income would have to be included no one specifically said inheritance would also be included. I did complain to the financial ombudsman however because it was within the IVA which i never read they didn’t find in my favour. While I’m sure an IVA is the right debt solution for some people i don’t think it was right for me and I wish the debt advice was a lot better.

[accordions ] [accordion title=”Story By” load=”hide”]Lisa Doherty[/accordion] [/accordions]

Bad Debt Advice Cost Me Inheritance
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