Johnsongeddes.co.uk Reviews

Based on looking at the website, Johnsongeddes.co.uk appears to be a company specializing in Individual Voluntary Arrangements IVAs and other debt solutions for individuals in the UK.

While they present themselves as a helpful resource for those struggling with debt, it’s crucial to understand that relying on such services, especially those involving interest-based financial products and significant debt restructuring, carries inherent risks and often conflicts with Islamic principles of financial management.

Instead of seeking debt solutions that might involve interest or complex, potentially exploitative arrangements, we are always encouraged to seek pathways to financial stability through honest work, avoiding debt, and if necessary, seeking benevolent loans or support from community and family, aiming for sincere repentance and reliance on Allah for provision.

When facing financial hardship, the Islamic approach emphasizes patience, prayer, seeking lawful income, and managing resources responsibly.

While Johnsongeddes.co.uk aims to help individuals manage overwhelming debt by stopping interest and charges, and writing off a percentage of debt, these solutions often involve contractual obligations that may still have underlying elements of interest riba or uncertain outcomes, which are not permissible.

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Furthermore, the very concept of accumulating excessive debt, to the point of needing an IVA, is a sign that one might have strayed from the Islamic emphasis on moderation and contentment.

It’s vital to explore alternatives that align with our faith, focusing on ethical financial practices and avoiding situations that lead to financial distress through impermissible means.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Johnsongeddes.co.uk Review & First Look

Based on an initial review of Johnsongeddes.co.uk, the website primarily positions itself as a service provider for individuals seeking debt relief through Individual Voluntary Arrangements IVAs. The site highlights its high IVA approval rate over 95%, a significant selling point for those in dire financial straits. It emphasizes that fees are not payable by the customer directly but are instead taken from the agreed monthly payments within the IVA itself, which might seem appealing at first glance. The company also states that it works with “trained IPs Insolvency Practitioners, no middle men,” aiming to build trust through direct, tailored advice.

Understanding the Focus: Individual Voluntary Arrangements IVAs

An IVA is a formal, legally binding agreement between a debtor and their creditors.

It allows a person to make affordable monthly payments to their creditors over a set period, usually five or six years, after which any remaining unsecured debt is written off.

• Key components of an IVA:
  • One affordable monthly payment: This is often highlighted as a major benefit, simplifying debt repayment.
  • Stopping interest and charges: A crucial aspect that can prevent debt from spiraling further.
  • Writing off a significant percentage of debt: This is the primary incentive for many, offering a fresh start.
  • Protection for home and vehicle: IVAs aim to safeguard assets from creditors.
  • Stopping worrying calls and letters: Provides relief from creditor harassment.
  • Stopping court and bailiff action: A legal shield against further enforcement.

Initial Impressions on Transparency and Trustworthiness

The website features numerous client testimonials, with names like Edward Wood, Joe Miller, and Robert Rayworth, praising the company’s help, professionalism, and support. The presence of a “Regulatory information” link and mention of being “regulated by the Insolvency Practitioners Association” IPA suggests a level of official oversight. However, it’s crucial to remember that while regulated, the nature of the service—dealing with debt that often originated from interest-based loans and credit cards—remains a point of concern from an Islamic perspective. The site clearly states, “An Individual Voluntary Arrangement may not be suitable in all circumstances and your credit report may be affected. You should also note that fees do apply.” This disclosure, while legally required, serves as a necessary caution.

Johnsongeddes.co.uk Cons

While Johnsongeddes.co.uk presents itself as a solution for debt, it’s critical to scrutinize the inherent disadvantages, especially from an ethical and Islamic perspective. Mads-vinduespudser.dk Reviews

The very nature of an IVA, while offering a legal pathway out of overwhelming debt, often stems from and perpetuates financial practices that are not aligned with Islamic teachings.

Underlying Issues with Debt and Interest Riba

The core business of Johnsongeddes.co.uk revolves around managing and resolving debt that largely originates from credit cards, personal loans, overdrafts, and payday loans. These financial instruments are almost universally structured around interest Riba, which is strictly forbidden in Islam.

• Perpetuation of Riba: Engaging with services that manage interest-laden debt, even if they aim to “stop interest and charges,” doesn’t negate the initial sin of having entered into such agreements. It’s like treating the symptoms of a disease without addressing its root cause.
• Moral Dilemma: For a Muslim, dealing with riba-based transactions, even when seeking relief from them, creates a moral quandary. The ideal approach is to avoid riba entirely from the outset.
• Debt as a Burden: The Quran and Sunnah strongly discourage debt unless absolutely necessary, emphasizing its potential to become a heavy burden in this life and the hereafter. An IVA is a clear indicator of severe debt burden.

Impact on Credit Score and Future Financial Standing

The website acknowledges that an IVA “may not be suitable in all circumstances and your credit report may be affected.” This is a significant understatement of the long-term repercussions.

• Severe Credit Score Damage: Entering an IVA will severely damage an individual’s credit score. This damage can last for up to six years from the date the IVA is approved, or even longer if the IVA lasts beyond six years.
• Difficulty Obtaining Future Credit: For years after an IVA, obtaining new loans, mortgages, or even basic credit cards will be extremely challenging, if not impossible, on conventional terms. This can restrict housing options, vehicle purchases, and other significant life decisions.
• Public Record: Details of an IVA are recorded on a public register the Insolvency Register, which can be accessed by lenders, employers, and landlords. This lack of privacy can lead to discrimination or difficulty in certain situations.
• Restriction on Business Activities: Individuals under an IVA may face restrictions on being a company director or holding certain professional positions.

Fees and Financial Obligations

While Johnsongeddes.co.uk states that “no fees are payable by you and our fees are taken from your payments into your IVA,” this doesn’t mean the service is free.

• Fees are still paid: The fees are simply deducted from the monthly payments the debtor makes. This means a portion of the money intended to repay creditors is diverted to the insolvency practitioner, potentially prolonging the repayment period or reducing the amount creditors receive.
• Types of Fees: These typically include:
  • Nominee’s Fees: For setting up the IVA and dealing with creditors.
  • Supervisor’s Fees: For overseeing the IVA once it’s in effect, collecting payments, and distributing them.
  • Disbursements: Costs incurred by the IP, such as legal fees or valuation fees.
• Potential for High Costs: While bundled into monthly payments, the cumulative fees can be substantial, adding another layer of financial burden to an already distressed individual. Estimates suggest that IP fees can range from £3,000 to £6,000 or even more, depending on the complexity and duration of the IVA.

Rigidity and Lack of Flexibility

An IVA is a legally binding agreement, which means it is very difficult to alter once approved. Guitarblueprint.de Reviews

• Strict Terms: The terms of an IVA are fixed. If an individual’s financial circumstances change e.g., job loss, reduced income, unexpected expenses, they may struggle to meet the agreed-upon monthly payments.
• Risk of Failure: If payments are missed, the IVA can fail. A failed IVA often leads to bankruptcy, which has even more severe consequences than an IVA. Data suggests that around 1 in 4 IVAs fail, according to a study by the Insolvency Service.
• Limited Scope: IVAs only cover unsecured debts like credit cards, loans, overdrafts. They do not cover secured debts like mortgages or secured loans, student loans, child support arrears, or court fines. This means individuals may still have to manage other significant debts outside the IVA.

Emotional and Psychological Burden

While an IVA aims to reduce financial stress, the process itself and its aftermath can be emotionally taxing.

• Stigma and Shame: For some, admitting financial difficulty and entering a formal insolvency arrangement can lead to feelings of shame or embarrassment.
• Long-term Commitment: Being tied into a legally binding agreement for five or six years can feel restrictive and mentally draining. The constant awareness of being “under an IVA” can be a source of anxiety.
• Loss of Control: Decisions about assets or certain financial activities may require the supervisor’s permission, leading to a feeling of reduced autonomy.

Considering these drawbacks, and the Islamic emphasis on avoiding interest and excessive debt, it becomes clear that while an IVA might be a legal escape route for some, it’s far from an ideal solution, especially for a Muslim.

Johnsongeddes.co.uk Alternatives

Instead of resorting to services like Johnsongeddes.co.uk, which deal with the problematic aftermath of interest-based debt, it’s far more beneficial and Islamically sound to explore alternatives that focus on prevention, ethical financial management, and direct, permissible solutions to financial hardship.

1. Proactive Financial Planning and Debt Prevention

The best alternative is to avoid significant debt altogether.

This requires disciplined financial planning and adherence to Islamic financial principles from the outset. Bicimarket.com Reviews

• Budgeting and Expense Tracking: Create a detailed budget and track all income and expenses to ensure spending does not exceed earnings. Numerous free budgeting apps like Mint, YNAB – You Need a Budget – or simple spreadsheets can help. Studies show that households with a budget are significantly less likely to carry credit card debt.
• Living Below Your Means: Prioritize needs over wants. Avoid consumerism and unnecessary luxuries. The Prophet Muhammad peace be upon him encouraged moderation in all aspects of life.
• Emergency Fund: Build an emergency fund to cover at least 3-6 months of living expenses. This acts as a buffer against unexpected financial shocks, reducing the need for high-interest loans. A 2023 Bankrate survey found that only 44% of Americans could cover a $1,000 emergency with savings.
• Avoid Riba Interest at All Costs: Do not engage with credit cards, conventional personal loans, or mortgages that involve interest. Seek Shariah-compliant alternatives for financing when necessary.
• Halal Income Streams: Focus on earning income through permissible means halal and avoid any business or investment that involves forbidden elements.

2. Seeking Guidance and Support from Permissible Sources

When facing financial difficulty, turning to the community, family, and Islamic scholars for advice is a blessed and often overlooked alternative.

• Community Support: In Islamic tradition, helping those in need is highly encouraged. Reach out to family, friends, or local mosque communities for advice, moral support, or even interest-free loans Qard Hasan if possible.
• Islamic Scholars and Financial Advisors: Consult with knowledgeable Islamic scholars or financial advisors who specialize in Shariah-compliant finance. They can offer guidance on managing existing debt in a permissible way or finding ethical solutions.
• Charity Organizations: Some Islamic charity organizations may offer support or guidance for those in severe financial distress, often prioritizing basic needs.

3. Direct Negotiation with Creditors Shariah-Compliant

Before considering formal insolvency procedures, direct and honest communication with creditors can sometimes yield permissible solutions.

• Payment Plans: Contact creditors directly to explain your situation and negotiate a revised payment plan. Some creditors may agree to lower monthly payments or a temporary payment holiday, especially if you have a good payment history.
• Debt Consolidation Halal Options: If you have multiple debts, look for a halal debt consolidation option. This might involve a Qard Hasan interest-free loan from a family member or community fund, or a Shariah-compliant personal finance product e.g., Murabaha or Ijarah from an Islamic bank, though caution is still advised to ensure true Shariah compliance and avoid disguised interest.
• Hardship Programs: Many creditors have hardship programs for customers experiencing genuine financial difficulties. They may offer options like reducing interest rates if you have already incurred them and are negotiating to reduce your burden, aiming for full repayment of principal or extending loan terms.
• Full and Final Settlement: If you can raise a lump sum e.g., from family support, you might be able to negotiate a full and final settlement with creditors for less than the total amount owed. This is permissible as it involves settling an existing debt.

4. Voluntary Debt Management Plans without formal insolvency

While not a formal insolvency procedure like an IVA, a voluntary debt management plan can be set up directly or through a non-profit debt advice charity.

• Non-Profit Debt Charities: Organizations like National Debtline or StepChange Debt Charity in the UK offer free, impartial advice. They can help you create a budget, negotiate with creditors on your behalf, and set up a Debt Management Plan DMP.
• Debt Management Plan DMP: A DMP is an informal arrangement where you pay one affordable monthly payment to a debt management company or directly to creditors, and they distribute it among your creditors. Creditors may freeze interest and charges, but they are not legally obliged to do so. This is generally more flexible than an IVA.
• Key Differences from IVA: DMPs are informal, do not legally bind creditors, do not affect your credit score as severely or for as long as an IVA, and typically don’t involve writing off debt. However, they are a way to manage repayment in a structured manner.

5. Prioritizing Needs and Seeking Spiritual Guidance

Ultimately, true financial peace comes from aligning one’s life with Islamic teachings.

• Tawakkul Trust in Allah: Have sincere trust in Allah’s provision while making every lawful effort. This mental shift can reduce anxiety significantly.
• Dua Supplication: Make sincere supplication to Allah for relief from debt and financial burdens.
• Sadaqah Charity: Giving charity, even when facing hardship, is believed to unlock blessings and provision from Allah.
• Focus on the Hereafter: Remind oneself that worldly possessions and financial struggles are temporary. The true success is in pleasing Allah and securing a good afterlife.

By focusing on these proactive, ethical, and Islamically aligned alternatives, individuals can strive for true financial well-being, avoiding the pitfalls of riba and complex debt restructuring that can compromise one’s faith and future. Auth.monzo.com Reviews

How to Cancel Johnsongeddes.co.uk Subscription

Based on the nature of Johnsongeddes.co.uk’s services, which primarily involve Individual Voluntary Arrangements IVAs, it’s important to clarify that you don’t typically “cancel a subscription” in the traditional sense as you would with a monthly streaming service or software. Instead, you would be looking to terminate or exit a legally binding IVA agreement. This is a far more complex process than simply clicking a “cancel” button.

Understanding IVA Termination

An IVA is a formal insolvency procedure, and once it’s approved by your creditors, it’s a legally binding contract.

Ending an IVA prematurely is not straightforward and usually happens in specific circumstances:

• Successful Completion: The most desirable way for an IVA to end is for you to successfully complete all agreed payments and terms. Once this happens, the IVA is considered completed, and you are discharged from the remaining unsecured debts.
• Failure to Comply: If you fail to make your agreed monthly payments, do not cooperate with your Insolvency Practitioner IP, or breach other terms of the IVA, your IP can propose to your creditors that the IVA be terminated. This is the most common reason for early termination.
• Annulment: In rare cases, an IVA might be annulled if it’s found that it shouldn’t have been approved in the first place e.g., due to procedural irregularities or misrepresentation.
• Voluntary Request Rare: It’s highly unlikely that you can simply “cancel” an IVA by requesting it voluntarily unless there are exceptional circumstances agreed upon by all creditors and your IP. Even then, it would typically involve repayment of a significant portion of the original debt.

Consequences of Early IVA Termination

If your IVA is terminated due to non-compliance or failure, the consequences can be severe:

• Creditors Revert to Original Debt: Your creditors will generally revert to pursuing you for the full original debt amount, plus any accrued interest and charges that were frozen during the IVA.
• Likelihood of Bankruptcy: The most common outcome of a failed IVA is that your IP or your creditors will petition for your bankruptcy. Bankruptcy has even more severe and longer-lasting consequences on your credit report and financial freedom than an IVA.
• Fees Still Payable: The fees for the IP’s work up to the point of termination will still be due, and these could be substantial.

Steps if You Are Struggling with Your IVA

If you are a client of Johnsongeddes.co.uk and are finding it difficult to meet the terms of your IVA, the critical first step is to communicate immediately with your assigned Insolvency Practitioner IP. Cleanandshine.se Reviews

1. Contact Your IP: Do not ignore the problem. Your IP is legally obliged to act in the best interests of both you and your creditors. Explain your change in circumstances e.g., job loss, illness, reduction in income.
2. Propose a Variation: Your IP may be able to propose a “variation” to your IVA to your creditors. This could involve:
   • A temporary payment break.
   • Reduced monthly payments for a period.
   • An extension of the IVA term.
   • A full and final settlement if you can raise a lump sum.
3. Seek Independent Advice: If you are unsure or unhappy with your IP’s advice, seek independent, free debt advice from organizations like StepChange Debt Charity or National Debtline. They can provide impartial guidance on your options.

It cannot be stressed enough: Do not simply stop making payments or assume you can “cancel” an IVA without formal process. This will almost certainly lead to worse financial outcomes, typically bankruptcy. The concept of “cancelling” a debt management service is usually limited to informal arrangements. for a formal, legally binding IVA facilitated by Johnsongeddes.co.uk, it’s a much more involved and serious process.

Johnsongeddes.co.uk Pricing

As a company specializing in Individual Voluntary Arrangements IVAs, Johnsongeddes.co.uk’s “pricing” structure is not like a conventional service with set packages or monthly fees paid directly by the client.

Instead, their fees are integrated into the IVA process itself.

This model is typical for all Insolvency Practitioners IPs operating in the UK.

How IVA Fees Work

Johnsongeddes.co.uk clearly states on its website: “In addition no fees are payable by you and our fees are taken from your payments into your IVA.” This means: Alectobaby.nl Reviews

• No Upfront Cost to You: You are not required to pay any money directly to Johnsongeddes.co.uk before or during the IVA process for their services. This is a common misconception, leading many to believe the service is “free.”
• Fees Are Deducted from Your Payments: The money you pay into your IVA each month is managed by your Insolvency Practitioner. A portion of these payments is allocated to cover the IP’s fees and expenses, and the remainder is distributed among your creditors.
• Creditor Approval of Fees: The fees charged by the IP must be approved by your creditors at the same meeting where they vote on your IVA proposal. Creditors typically agree to reasonable fees because they understand that the IP’s role is crucial in managing the arrangement and maximizing their returns.

Components of IVA Fees

The fees charged by an Insolvency Practitioner like Johnsongeddes.co.uk generally comprise two main parts:

1. Nominee’s Fees:

   • Purpose: This fee covers the work involved in setting up the IVA. This includes assessing your financial situation, preparing the IVA proposal document, communicating with your creditors, convening the creditors’ meeting, and obtaining their approval for the IVA.
   • Typical Amount: This is often a fixed fee, usually around £1,000 to £2,500, but it can vary based on the complexity of the case. For example, a simple IVA might be £1,000, while a more complex one with many creditors could be £2,000 or more.
   • Payment Method: The Nominee’s Fee is typically paid from the first few monthly payments you make into your IVA. For instance, if the fee is £2,000 and your monthly payment is £250, the first 8 payments might go entirely towards the Nominee’s Fee.
2. Supervisor’s Fees:

   • Purpose: This fee covers the ongoing management of the IVA once it has been approved. This includes collecting your monthly payments, distributing funds to creditors, conducting annual reviews of your financial circumstances, dealing with creditor queries, and ultimately bringing the IVA to a successful conclusion.
   • Typical Amount: The Supervisor’s Fee is usually calculated as a percentage of the money paid into the IVA often around 15% to 20% or as a fixed monthly fee, or a combination of both.
   • Payment Method: This fee is taken proportionally from your monthly payments after the Nominee’s Fee has been fully paid.

Disbursements

In addition to the IP’s professional fees, there are also “disbursements,” which are out-of-pocket expenses incurred by the IP during the course of the IVA. These are also taken from the IVA payments.

• Examples: These can include:
  • Fidelity bond insurance a legal requirement.
  • Statutory advertising costs e.g., in The Gazette.
  • Postage and stationery costs.
  • Valuation fees for assets if applicable.
  • Software licensing fees for managing IVA cases.

Total Cost Implications

While you don’t pay “out of pocket,” it’s crucial to understand that these fees effectively reduce the amount of money that goes towards repaying your original debt. Redmenta.com Reviews

For example, if you pay £200 per month into an IVA for 60 months, that’s a total of £12,000. If the IP’s fees Nominee + Supervisor + Disbursements amount to £4,000, then only £8,000 will be distributed among your creditors.

Data Insight: According to the Insolvency Service’s official statistics, the average fees charged by Insolvency Practitioners in IVAs range significantly, but typically fall between £3,000 and £6,000+ over the lifetime of a standard five-year IVA, depending on the complexity and volume of payments. It’s essential that these fees are transparently outlined in your IVA proposal document, which you should review carefully before agreeing to the arrangement.

For a Muslim, while the “no upfront fee” aspect might seem appealing, the underlying cost still represents a deduction from funds that could otherwise go directly to debt reduction.

The entire structure necessitates dealing with the aftermath of interest-based debt, reinforcing the importance of avoiding such financial entanglements from the outset.

Johnsongeddes.co.uk vs. Other Debt Solutions Islamic Perspective

When comparing Johnsongeddes.co.uk’s primary offering Individual Voluntary Arrangements – IVAs with other debt solutions, it’s vital to apply an Islamic lens, prioritizing options that align with Shariah principles and actively discourage those that don’t. The objective isn’t just debt relief but permissible debt relief. Schatzalp.ch Reviews

1. Johnsongeddes.co.uk IVAs – Discouraged

• Mechanism: Formal, legally binding agreement to repay a portion of unsecured debts over a fixed period typically 5-6 years, with remaining debt written off. Fees are paid from the IVA payments.
• Islamic Analysis Discouraged:
  • Origin of Debt: IVAs deal primarily with debt accumulated through interest-based credit cards, loans, and overdrafts riba, which is forbidden in Islam. While an IVA aims to stop further interest, it’s a response to a situation that ideally should have been avoided.
  • Impact on Future: Severe credit score damage for 6+ years. Difficulty in future halal financing options.
  • Rigidity: Legally binding, difficult to change if circumstances worsen, risking failure and bankruptcy.
  • Fees: While not upfront, significant fees are deducted from payments, reducing funds going to creditors.
  • Overall: While it might offer a legal “escape” from overwhelming interest-based debt, it’s a consequence of engaging with impermissible financial systems. It doesn’t promote responsible, proactive Islamic financial management.

2. Debt Management Plans DMPs – Moderately Discouraged/Contextual

• Mechanism: Informal agreement where you make one affordable monthly payment to a debt management company often non-profit or directly to creditors, who then distribute it. Creditors may freeze interest, but are not legally obliged.
• Islamic Analysis Moderately Discouraged/Contextual:
  • Flexibility: More flexible than an IVA. No public record. Less severe impact on credit score, though recorded.
  • Interest: While interest may be frozen, the underlying debt still originates from riba. The key difference is the informal nature, allowing for direct negotiation without legal binding to an interest-based system.
  • No Debt Write-off: You still aim to repay the full principal amount, which is commendable.
  • Overall: Better than an IVA in terms of flexibility and no public record, and no debt write-off means you are striving to repay the principal. However, it still deals with the aftermath of riba-based debt. If the debt was genuinely incurred out of necessity, seeking to manage its repayment transparently and aiming to reduce or freeze interest is a step in the right direction.

3. Bankruptcy – Highly Discouraged

• Mechanism: A formal legal process where you are declared unable to repay your debts. Assets may be sold to repay creditors, and most unsecured debts are written off after a period typically 12 months.
• Islamic Analysis Highly Discouraged:
  • Asset Liquidation: Forced sale of assets can lead to significant loss.
  • Severe Restrictions: Long-term negative impact on credit, public record, restrictions on certain professions, and travel.
  • Shame and Disgrace: Can carry a heavy social and psychological stigma, which is against seeking a dignified path.
  • Overall: Considered a last resort. While it provides a legal discharge from debt, the consequences are severe and the underlying cause is often engagement with impermissible financial practices. It lacks the dignity and personal responsibility encouraged in Islam.

4. Halal Debt Solutions Ideal Alternatives – Strongly Encouraged

These are the preferred methods for a Muslim, focusing on preventing debt or resolving it through permissible means.

• a Qard Hasan Interest-Free Loan:

  • Mechanism: A benevolent loan from family, friends, or Islamic charitable organizations where no interest or additional fees are charged.
  • Islamic Analysis Strongly Encouraged: The most ideal form of lending/borrowing in Islam. It embodies mutual help and avoids riba entirely. This is the first avenue to explore when facing financial difficulty.

• b Direct Negotiation & Payment Plans without third-party fees:

  • Mechanism: Directly contacting creditors to explain hardship and negotiate reduced payments, interest freezes aiming to pay off principal, or extended terms.
  • Islamic Analysis Strongly Encouraged: Promotes honesty and direct responsibility. If creditors agree to freeze interest and allow repayment of the principal, it’s a permissible way to manage existing debt.

• c Lifestyle Adjustment & Budgeting:

  • Mechanism: Rigorous budgeting, cutting unnecessary expenses, increasing income through lawful means, and focusing on saving.
  • Islamic Analysis Strongly Encouraged: Aligns with the Islamic emphasis on moderation, frugality, and living within one’s means. It’s a proactive, preventative measure that cultivates financial discipline.

• d Seeking Charity Sadaqah or Zakat: Justalittlesomethinguk.com Reviews

  • Mechanism: If in severe destitution and unable to repay debts, receiving assistance from Zakat funds or general charity.
  • Islamic Analysis Strongly Encouraged, for those eligible: Zakat is specifically for the poor, needy, and debtors gharimeen who are unable to repay their lawful debts. It’s a permissible and dignified form of relief.

• e Istighfar and Dua Repentance and Supplication:

  • Mechanism: Turning to Allah in sincere repentance for past financial mistakes and making earnest supplication for relief and provision.
  • Islamic Analysis Foundational and Essential: The most fundamental solution. Believing in Allah’s power to provide and ease difficulties is paramount. Prophet Muhammad peace be upon him taught specific duas for debt relief.

Conclusion: For a Muslim, while services like Johnsongeddes.co.uk might seem like a legal fix for debt, they are a band-aid solution to a problem often caused by engaging with impermissible financial systems. The true path to financial stability and peace lies in adhering to Islamic financial principles, avoiding debt and interest, and seeking aid through community, charity, and direct, honest communication with creditors, all while maintaining reliance on Allah.

Frequently Asked Questions

What is Johnsongeddes.co.uk?

Johnsongeddes.co.uk is a UK-based company that specializes in providing advice and services for individuals struggling with debt, primarily focusing on Individual Voluntary Arrangements IVAs and other formal debt solutions.

Is Johnsongeddes.co.uk a legitimate company?

Based on the website information, Johnsongeddes.co.uk states it is “regulated by the Insolvency Practitioners Association” and has been providing services since 2012, suggesting it is a legitimate entity operating within UK insolvency regulations.

What is an Individual Voluntary Arrangement IVA?

An IVA is a formal, legally binding agreement between you and your unsecured creditors to pay back your debts over a set period, typically 5 or 6 years, with the remaining unsecured debt written off upon successful completion. Themalonehotel.com Reviews

How does an IVA offered by Johnsongeddes.co.uk work?

An IVA involves consolidating your unsecured debts into one affordable monthly payment.

Johnsongeddes.co.uk, as your Insolvency Practitioner, negotiates with your creditors to freeze interest and charges and accept a partial repayment of your debt.

Does an IVA stop interest and charges on debts?

Yes, one of the key benefits of an IVA facilitated by companies like Johnsongeddes.co.uk is that once approved, it stops interest and charges from accruing on your unsecured debts.

Can an IVA write off a significant percentage of my debt?

Yes, if successfully completed, an IVA can result in a significant portion of your unsecured debt being written off.

The exact percentage depends on your financial circumstances and the agreement reached with creditors. Leneon.fr Reviews

What types of debts can an IVA include?

IVAs typically cover unsecured debts such as credit card debt, personal loans, overdrafts, council tax arrears, store cards, payday loans, and HMRC tax debts.

Does an IVA protect my home and vehicle?

One of the aims of an IVA is to protect assets like your home and vehicle from creditors, unlike bankruptcy which may require selling assets.

However, equity in a property might need to be released.

What is the impact of an IVA on my credit score?

An IVA will severely impact your credit score and will be listed on your credit file for six years from the date of approval.

This will make it difficult to obtain credit during this period. Littleworldearlylearning.com Reviews

Are there fees involved with Johnsongeddes.co.uk’s services?

Yes, fees apply. Johnsongeddes.co.uk states that their fees for preparing and supervising the IVA are included in your agreed monthly payments into the arrangement, meaning you don’t pay them upfront or separately out-of-pocket.

How long does an IVA typically last?

Most IVAs last for 5 years 60 months, though some can be extended to 6 years 72 months if, for example, you have equity in your property that cannot be released immediately.

What happens if I can’t keep up with my IVA payments?

If you struggle to meet your IVA payments, you must immediately contact your Insolvency Practitioner IP. They may be able to propose a variation to your IVA terms, such as a payment break or reduced payments, to your creditors.

Can I cancel an IVA once it’s approved?

No, an IVA is a legally binding agreement once approved by your creditors. You cannot simply “cancel” it.

Failure to comply with the terms can lead to termination of the IVA, often resulting in creditors pursuing the full original debt or bankruptcy. Skoolbo.com Reviews

Does Johnsongeddes.co.uk offer alternatives to an IVA?

While Johnsongeddes.co.uk focuses on IVAs, their website mentions “Other debt remedies,” suggesting they may discuss other options like Debt Management Plans DMPs or bankruptcy during an initial assessment, to determine the most suitable solution.

What are some ethical alternatives to an IVA?

Ethical alternatives include proactive financial planning and budgeting, seeking interest-free loans Qard Hasan from family or community, direct negotiation with creditors to repay principal, and seeking assistance from Zakat funds if eligible.

How does an IVA compare to bankruptcy?

An IVA is an alternative to bankruptcy, generally allowing you to keep your assets like your home and avoiding the stricter restrictions of bankruptcy.

However, bankruptcy typically lasts for a shorter period 12 months before discharge from most debts.

Are there any upfront costs to start the IVA process with Johnsongeddes.co.uk?

No, Johnsongeddes.co.uk explicitly states that no fees are payable by you directly and that their fees are taken from your payments made into the IVA once it is approved. Proleno.com Reviews

Can I include all my debts in an IVA?

An IVA typically includes most unsecured debts.

However, it usually does not cover secured debts like mortgages or secured loans, student loans, child maintenance arrears, or court fines.

What should I do if I’m considering an IVA?

If you are considering an IVA, it’s crucial to seek free, impartial debt advice from non-profit organizations like StepChange Debt Charity or National Debtline in the UK before committing to any formal arrangement.

What is the typical IVA approval rate for Johnsongeddes.co.uk?

Johnsongeddes.co.uk states their IVA approval rate is in excess of 95%, indicating a high success rate in getting proposals accepted by creditors.

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