Insolvency man said they would only accept 30%HELP!!!

rudeboyroy

took the first tentative steps to remedying the terible situation I find myself in and had first 1 hour free consultation with IVA specialist which was in an Accountant's and just want to know if everyone agrees with what info I have been told.

I have well over 100k in unsecured debt made up with loans and credit cards, the main players involved are Barclays,Egg,Halifax,Northern rock,Hsbc,Amex and MBNA.

I am trying to set up an IVA and avoid Bankrupcy and the stigma attached with it, and was told today that the minimum these companys will accept is 30% of the total debt + £15000 in admin costs and fees and the total cost of administering the agreement.

with what I have read in this forum and different other sites these companies seem to acept less than I have been told, and the truth being if I go bankrupt they recieve nothing. As stated before I don't really want to go bankrupt because I don't want OR going through all of my statements(some gambling debt involved) and I don't want the stigma of bankrupcy.

Really need some help guys.....

james32_uk

From my understanding 30% is a pretty normal offer and is more likely to be accepted. It is possible to get lower amounts like 20-25% accepted though.

You should strongly consider bankruptcy if you have no assets to protect. I know it's not for everyone cause I won't do it either!

If you want to look at an IVA first recommendation is talk to Payplan. Payplan will charge you approx £2500 plus 20% of all repayments plus VAT. This is likely to be lower than other companies as they are non-profit making. The lower the fees the higher your % repayment will be and the more likely it is to get accepted.

So, work out how much you need to live on per month. The surplus from your income can then be offered to your creditors in an IVA to be paid for 60 payments. Add this up, deduct the amount Payplan are likely to charge and you can work out an approx %.

Therefore for a debt of, say, £120k you're looking at around £850 income surplus per month to reach 30%.

PM me if you need any more help.

Good luck!

CLAPTON

you haven't really given any real detail
do you have any assetts i.e. house equity or similar?
how much 'surplus' income do you have ?
what are your level of unsecured debts?

Toto

I looked through your posts to try to get an idea of what you had posted previously regarding your situation so I could offer some help. I couldn't find a post with your SOA (which is a good place to start)

All I can say, is you need to really be honest about your financial situation, firstly to yourself. You must stop all the trips abroad. If you have gambling problems then this needs to be dealt with, perhaps join GA, and any compulsive spending needs looking at too. I am not having a go at you, just concerned that you will deal with the debt without dealing with the issues which got you in this position, which could just put you back in the same boat, if you don't sort them.

As for the IVA, sometimes creditors will accept less than 30%. It does all depend on your current financial situation and how hopeful they feel about you being able to pay more in the future. If they see you as a lost cause then they will be more willing to accept he lower offer.

If you would like to post a SOA the folks here will go over it and tell you where you can cut back, this will really help you in sorting out the IVA, because the creditors will need to see a SOA and if there are figures they feel are unreasonable, they will refuse.

Do keep posting here; everyone is here to help.