31p in the pound??

Trude

Can anyone offer an educated guess please?
I've spoken to my IP this morning to sort out an IVA and based on the figures, I will be repaying my creditors 31p in the pound and after five years, I will have repaid 70% of the debt . What are the chances of the IVA being accepted at this rate? My biggest creditor is HSBC and I've read that they don't accept anything less than 34p. Does anyone know if this is the case or has anyone had an IVA accepted at this rate? Any information would be most gratefully recieved.

Charco_2

Your creditors should be looking at each case on an individual basis... but we know they don't!

HSBC I think look for 35-40p in the £, but are they more than 25% of your total debt? They could vote "NO" and still be forced to accept it. Your IP (company) should be on the ball enough to continue negotiating if HSBC do say "no", find out what exactly any company who rejects the proposal wants to happen and see if they can still come to an arrangement.

Your proposal might just have a few modifications which you'll either have to agree to or face a rejected proposal.

It's just one of those times: God, grant me the serenity to accept the things I cannot change; the courage to change the things I can; and the wisdom to know the difference... in other words don't let it worry you unnecessarily now, you and your IP can cross any bridges when/if you come to them!

thewad

If your paying 31p in the pound how are you paying 70% of the debt off?
Surely your paying 31% off.

John

Charco_2

I thought that too but think (s)he's saying that over the course of the loans from the very start she'll have paid back 70% (so including debts paid up until the start of the IVA, they're getting back 70% - they've already received 40%!)

Something like that!

Trude

That's it, by the end of the IVA I will have paid off 70% of the debt and that includes what I've paid back already, before the IVA starts.
And thank you for words of wisdom Charco, I am trying very hard not to worry but my mind is in overdrive. Having initially worried whether the IVA was the right way to go, I'm now worrying in case it's rejected. It's just a constant round of worrying and waking up at stupid o'clock and worrying some more, just in case I wasn't worrying enough already!

Charco_2

I'm sure you'll be fine Trude, the creditors aren't easy to work with but usually a rejection can be worked with. If its thrown back this month, your IP may simply re-enter it into the whole merry-go-round next month... It may just be that your creds want to squeeze a few extra shillings!

How long until your meeting?

Trude

At the moment, I'm not 100% sure. I have another meeting with my IP on Friday as there is an issue with my car - my name is on the log book but my OH pays for it and it's his name on the HP agreement. So, I've had to send her copies of everything. Hopefully I'll know more on Friday.

Charco_2

Oh so the Creditor's Meeting hasn't been set up yet!? You're IP is just at the stage of researching your situation!

That shouldn't be too much bother about the car - you'd hope. The HP agreement is a secured loan so you'll either continue to pay it or sell it back get a cheaper car and put the shortfall into the proposal. Doesn't really matter whose name the car is in either since it has to be paid as a household expense before finding your disposable income.