Debt Free Direct www.debtfreedirect.co.uk Review

Overall Rating

Initially friendly

Money makers
Poor communicators
Poor safety protocols
Little help to really keep going

Friendly to start with but then it all gets a bit more full on. We even received the IVA papers for 5 other clients and our own, but these were the papers meant for the iva practitioner. They had all of the details of the other clients on them, who they owed money to, how much, their address, date of birth, everything...
Once you're in it's really difficult to keep going but we're in our 12th month of 60 now, so doing our best. They leave you with as little money as possible each month and are very rude if you want to dicuss changes. They should have advised bankruptcy for us, it would have been less painful and more final. It has become very clear to me that Debt Free Direct are only in it to make money, not to help you back on your feet again.

Members' Comments onmoorzo1980's Review

• Derek Oakley on 16th Jul 2009

  The choice between an IVA and bankruptcy will be made partly on your circumstances and partly according to your attitude to debt repayment. Whichever, it will be a personal judgement.
  There are some clear areas where an IVA has a clear edge. If you are a homeowner you will be required to make any equity in your home available to creditors. If you can find a third party to buy your interest then that will allow you to stay in your home. If you can't then it's highly likely that you'll be required to leave within 12 months.
  The same requirements attach to other surplus assets too. So whilst you're likely to be able to keep a modest car you will be required to sell and trade down if you have car with a value ( after finance) of a more than £8k. Similary, if you have other assets such as jewellery or caravan you may be required to sell them too.
  Certain jobs and professional activities will be in jeopardy if you are made bankrupt. Some are obvious. Accountants, lawyers, police officers and prison officers. But anyone working in finance or in job where they are responsible for handling cash, or ordering goods may find difficulty.
  Many employers now have more enlightened policies regarding financial difficulties. A loss of job on bankruptcy is now less likely to lead to job loss. But it's likely that there will be some role adjustment and it's hardly likely to advance promotion prospects.
  Further, many employers to background checks with credit reference agencies before hiring. When presented with two candidates who are otherwise evenly matched an employer is likely to be influenced by how well an individual has managed their credit.
  It is unquestionably true that you will pay back more in an IVA than bankruptcy. An IVA lasts a typical 5 years. Bankruptcy only three.
  Some people see an IVA as a way of being fair - paying back the most they reasonably can.
  The judgement essentially becomes
  . Do I want to make the best offer of repayment that I reasonably can whilst maintaining a reasonable lifestyle?
  . Do I own a property and wish to be sure that I won't have to sell it against my wishes?
  . Do I want to give myself the best available presentation of my credit management?
  . Do I have a job where bankruptcy will have an adverse effect?
  If the answer to one or more of these is "Yes", then you should favour an IVA over bankruptcy.
  
  Derek Oakley
  Debt Solutions Director
  Debt Free Direct