Creditor meeting question

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purpleparrotuk
purpleparrotuk Posts: 366 Forumite
Name Dropper First Anniversary Combo Breaker First Post
edited 7 September 2010 at 10:06PM in IVA & DRO
Hello

I am part way through my IVA application with a debt company. Under my list of creditors 3 have been assigned to KMPG.

Although these debts are actually with 2 different creditors (15k out of approx 42k total) does this mean that if they disagree with the IVA then because 15k is over the 25% the IVA can be rejected totally?

If so it doesn't seem fair because if they were split between the 2 actual companies then it would not be more than 25%.

The 2 companies are not linked in any way so why have KMPG been assigned to them? Will KMPG speak for each creditor separately?

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  • Charco_2
    Charco_2 Posts: 1,677 Forumite
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    (almost) No bank or credit house votes on their own IVAs anymore. Each credit house has an agreement with a large accountancy practice or other financial company to do their voting for them. The bank simply sets down their criteria and outsources the work.

    I understand your concerns, and believe me these concerns are shared by most IPs too... sort of like by combining all the debts it allows a for a de facto monopoly to be built up! It gives the credit houses an unfair stranglehold.

    However, to allay your fears a little, it's not uncommon for one of the outside finance companies to vote yes for one creditor and no for another on the same IVA - simply because you fit the criteria of one of their clients but you dont for the other.

    Finally - since you seem to be concerned about the likelihood of your IVA being accepted, i'll tell you what I tell everyone, obviously there are no guarantees though!

    Your IP will have a great deal of experience in drafting and proposing IVAs. Your IP will know from even just a glance at your list of creditors what the main points of their criteria are and if your proposal fits those various moulds (or comes close). Basically your IP has a fair idea of what will and wont be accepted. Your IP earns his money with SUCCESSFUL CASES. He has to put the same time and effort into an IVA that is rejected as an IVA that is accepted, however he wont earn his fees if it rejected so it is unlikely that he will want to waste your time or his own or his resources doing he work he wont eventually be paid for.

    Finally, usually creditors dont reject IVAs outright unless the proposal is completely unacceptable! Usually if they've and discrepancies they'll come back with some sort of counter offer. (ie - you offer £250 a month but they think you're spending too much on sky tv, or mobile phones, or they don't want you to have gym subscription... so they cut £30 and say they'll accept it if you bring in £280 a month instead - it's up to you then if you want to accept this modification)
    Would you ask the wolves to look after the sheep?
    CCCS funded by banks
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