Timescale

diddly74

HI there Guys

Can anyone answer this question of mine? I have since October been talking to Grant Thornton (recommended by the CAB) about an IVA. They have done all the paperwork, but the Creditors meeting was only help on 24rd February. It seems to be taking an awful long time to get this sorted out.

One of our creditors representatives rejected the proposal on the 23rd and now are asking for extra paperwork. Has anyone else had this?

Grant Thornton have already put the paperwork through with and extra years payments on the proposal (72 months instead of the usual 60) because we only have £177 to offer in payment. I am beginning to think my husband and I should both go bankrupt, and if I could get some decent advice I would abandon the IVA!!!!!

Thanks in anticipation of any help.

samace83

Hi there :wave:
I am currently in the second month of my IVA with a company called McCambridge Duffy. I entered discussions 15th December and my creditors meeting was 20th January. Compared to that timescale yours seems to have taken an awful long time- have they given you any reason why it has taken so long?
When hyou say they have asked for extra paperwork did they ask for anything in particular? Normally to set up an IVA you have to provide them with an income & expenditure, all your recent documentation from your creditors, 3 months payslips etc. This should be all that an IVA company should need to set up an IVA. Your creditors should have all this documentation as backup to your proposal from the IVA company. This does seem a bit odd IMO.
Regarding the payment- I only pay £180 a month and my creditors accepted the 60 month proposal fine. They weren't happy with the original fee payments the company wanted so that got reduced Your payment shouldn't be a problem and I thought they could only add months to an IVA during one of your final reviews. Someone should be along to confirm that though.
I can't advise re:bankruptcy as it wasn't an option for me BUT you could have a look at the bankruptcy board and ask for a bit of advice over there also.

Sorry for the essay reply! Hope this helps a bit though
Sam

debtinator_2

Hello

Do the CAB get an "introducer's fee" from GT?

I'm shocked that that the IP hasn't discussed bankruptcy with you, they are supposed to. It might have something to do with the fact that perhaps they don’t want to talk you out of the IVA.

The basics are that if you don't have any assets, for example equity in your home, your job wont prevent you from doing a bankruptcy and you are not a company director then a bankruptcy may be an option for you.

Let’s look at the maths alone for a minute, you say you are planning to make 72 contributions into an IVA that’s a total of £12,744.

If you did a bankruptcy with £177 disposable income (if in fact you do actually have this sum and it’s not just you living on bread and water for 6 years) You could expect to get an income payment order, you would be asked by the O/R (or trustee in the bankruptcy) to pay 50% of this, lets round the figure up to £90. You would have to make 36 payments so that would be a total of £3,240.


By the way which ever way you go, IVA or Bankruptcy, your credit file will still show as being insolvent. In the IVA you will be “discharged” at the end of the IVA and in a Bankruptcy you will be discharged in 12 months.

Which one do you prefer the sound of?

Oh one other thing to bear in mind, have a look in the IVA document about “nominee” and “supervisor” costs, guess who that is?
I suppose what I am trying to say is perhaps you should look at this from a different angle.

Did GT tell you they were working for you? With your best interest in mind? etc etc. As usual it’s not the IVA company but those nasty old creditors who are holding things up eh?.

Choo_Choo_4

Diddly .. I would go back to GT and ask why they have gone in @ 72 months before the creditors meeting, as Samace has said his was agreed @ £180 per month (just £3pm more) over the usual 60 month period. It is not up to your IP to set up an initial proposal @ 72 months - an IVA is a 60 month arrangement - sometimes creditors might not be happy with what is on the cards and may ask for it to be extended by an extra 12 months but whether this happens or not is up to you - I don't know why GT have gone in at the deep end.

As it stands (although I would be unable to advise with so little information) it does look like bankruptcy may be a better option for you and should have been discussed with you at the initial meeting.

GT should have explained in detail DMP, IVA and Bankrutpcy at meeting stage and allowed you some time to think over the options and decide which you felt was best for YOUR situation - they can advise but the decision is yours.

If bankruptcy has no effect on you (as in relation to assets, job prospects etc) then it is certainly worth considering and you will get most of the information you require on the bankrutpcy section.

£177 should be a comfortable payment for you enabling you to pay all household bills and have a decent standard of living without being luxurious (or indeed scrimping ... ) but if you feel that even this would be a struggle bankruptcy may be best.

Don't allow GT to push you into a decision - think about it and talk it over with someone if need be


Would there have been any reason for an initial hold up

Charco_2

Choo_Choo wrote: »

GT should have explained in detail DMP, IVA and Bankrutpcy at meeting stage and allowed you some time to think over the options and decide which you felt was best for YOUR situation - they can advise but the decision is yours.

Looks like you've been given AMPLE time to consider your options - just a shame it doesn't seem like they discussed the options!

Agree with the poster above that your proposal should have been offered at 60months and it's then up to the creditors to ask for an extension... you shouldn't be told to offer it straight out!

I don't agree with Debtinator that you'd have an IPO or 36 months of payments... £177 aint a huge amount and you could probably lose a few of those £s too in BR so it's well worth looking into! I'd bet your I&E with GT was rather tight anyway and that it probably isn't that affordable in the long-term as an IVA

debtinator_2

Agree with you Cahrco

I dont think he would get an IPA based on £177, I was using his figures as a like for like comparison. The truth is there are allowable expenses in a B/O I&E which GT probably havn't told diddly about.

I am sure that you would agree with me though that an IPA does require 36 payments?.

If you want my honest opinion I think his I&E in a bankruptcy might show less than the £90 threshold for an IPA and that diddly wouldn't have to pay anything to the trustee.

End result if that were the case; no monthly payments and debt free in 12 months, I wonder if GT explained THAT to him?

Charco_2

I'd bet GT probably didn't explain that... it doesn't look like GT explained much!

(I was just disagreeing about the relevancy of the 36 months payments - think they'd be irrelevant in this instance although we can't claim to know either way on the limited information given)

diddly74

Thanks Guys

When I first met with GT I was very stressed about the money problems and not really thinking straight. My OH and I decided on the IVA really only because we wanted to keep our house. But now our feelings have changed and we want a Fresh Start and are not bothered about the bricks and mortar, as long as WE are happy TOGETHER then any house can be our home!

I have now come to the conclusion that debtinator hints at - that GT pushed the IVA harder because that is what they get paid for. And yes you are right - the budget GT came up with has fewer/smaller allowances for our living expenses than those allowed for BR. I have been doing much more reading up on these forums, the insolvency website and such like.

We are now following advice from the CCCS, and are looking towards BR. It frightens me to death - but then don't most things unknown???? BR is only a temporary situation, and we have a lot of life left to live! :T

The time it has taken for GT to get the paperwork together - even tho I scanned all the evidence they asked for and emailed it over - so they didn't even have to wait for the post - has been an annoyance. But at least it has given me the time to think about other options and if they had rushed it through I would be paying the IVA now and still probably worrying that I could afford everything!