Chances of IVA being accepted?

the-money-muppets

Our first post on the site....

We are awaiting a draft IVA proposal as this seems the best option to clear our debts. However, since starting to sort ourselves out and for the last 2 months or so we have been reading about iva's and debt management etc and have heard a few horror stories about certain creditors and are now left wandering what our chances of a successful iva will be.

Our main creditor debts are with N Rock (together mortgage and unsecured loan) a Mint loan (unsecured) and mint card, Barclaycard, and a Lloyds loan, HSBC mastercard

Total debt is approx 80,000 and we are looking at monthly iva payments of 900

Giving creditors about 48 p in the pound

We hear N Rock usually ask to go from 5 to 6 year IVA plan and move you to an interest-only mortgage.

Anyone else in a similar position or had success or otherwise with these creditors.

Many Thanks x

Charco_2

Bog standard creditors... provided it meets the criteria it shoud be ok.

None of these lenders actually vote on their own IVAs... all that work is farmed out to other companies.

Your IVA will be voted on by TIX (the Insolvency Exchange), KPMG and PWC - i think!

Your IPs fees will be slashed to bear minimum but that wont affect your IVA being accepted.

The only other thing to mention is to try not to worry about this too much.
1. Your IP will only earn a fee if this IVA is accepted. It takes the same amount of time, effort and resources to draft a successful IVA as it does to draft one that is rejected. Your IP will have plenty of experience in this and so will not want to be wasting your time, his time, or his resources on an IVA that is going nowhere.
2. Usually, IVAs are not simply rejected outright. The IVA is only proposed on it's own merits. The IP helps to draft your best offer but your creditors (their representatives) might want to make a few alterations to that. IVAs are rarely rejected, they may simply be met with a number of modifications for you to agree to.
(ie - you propose to pay £900 a month but your creditors feel that you can afford £950 because you don't need to spend so much on groceries or gym subscriptions for you and the wife. So your creditors come back with a counter offer and it's up to you to agree to this or not)

Everything is negotiable!

adfax

From my own experience of 6 months ago, I too went through this process of trying to second guess whether my proposal would be accepted.

I too had heard that creditor X only accepts a certain return, or adds their own conditions and so on.

However, as Charco has said, the IP will only get paid if the proposal gets accepted, therefore they will put forward a proposal that they think will be accepted.

The other thing to bare in mind is that your creditors will be looking to get the best deal for themselves that they can. If your IP has shown that your proprosal is the best deal the creditors can expect then the chances of it being approved are good.

Good luck and let us know how it goes.

the-money-muppets

Thanks to you both,

will let you know what happens

Barkley_2

Thanks for the info Charco. You know how to put peoples minds at ease. I too have been worrying if it will get accepted, but I feel much better knowing this.

3431Anna

Thanks charco from me also, my husbands IP is organising a meeting with his creditors re and IVA and I am worried about whether it wil be accepted or not I hope that is will be as this seems like the best way to go for him, I think they are just setting up the meeting today so I wil let you know what happens

Charco_2

Something else that may be of interest to you all then.

A creditors "meeting" is sort of a mis-leading name... it's more of a creditors deadline!

Your IP has to give all your creditors 16 days notice that you intend to enter into an IVA in order to give your creditors time to decide if they will accept your proposal or not (this is the statutory waiting time)... there is no actual creditors meeting for you or your creditors to attend, your creditors simply have this time frame in which to express their intentions - whether to accept or reject (more usually modify) your proposal.

Your creditors will fax through (or email) their wishes at some stage during these 16 days... So your IP may - if you ask nicely - be able to give you an indication of how the voting is going a couple of days before the deadline is reached... just if the tension gets too unbearable for you!

3431Anna

just a quick up date husband has had a letter yesterday from IP saying that his creditors meeting will be on 3 . 9.10 and that whilst he doesn't need to attend he must make himself available by telephone in case they need to ask him any questions or if his creditors need to propose any ammendments so that he can agree or disagree so i suppose now we will just have to wait and see hope it all turns out o.k.

the-money-muppets

Good luck with your meeting. We have received our proposal and need to phone up to confirm we are happy with it before signing and sending it back. Let you know more as and when x

the-money-muppets

Had our IVA proposal and have read through and signed it all. Now waiting for Creditors meeting date. Interestingly the drafter has changed our expenditure figures - still works out the same in total but has increased on food but decreased on car fuel - is this usual? We are happy so long as we get accepted!!

the-money-muppets

Got our Creditors meet date - 5th oct - fingers crossed