Advice needed on IVA Creditors Meeting!

Piggybank_2

My Creditors meeting is coming up, and with a couple of default letters in my in-tray, I'm counting the days!

What I'm worried about now (theres always something!) is what happens if the creditors reject the plan put forward?? I can't imagine that they would as my debt was 19,000 and I will be repaying approx 13,000. Could anyone let me have some advice on how creditors meetings usually go???

ta!

james32_uk

How much of the 13k is going towards creditors though? £19k is a small debt to do an IVA with as the 'fixed cost' of the fees will be a much higher proportion of the overall repayment than with a larger debt.

At a guess I would expect a minimum of £6k to go towards fees which leaves £7k for creditors and an offer of 37p in the £, which has only a reasonable chance of acceptance.

As you know you need 75% of the value of your creditors to agree. If it doesnt reach this proportion voting in favour then your proposer can agree to adjorn the meeting for up to 2 weeks during which time you can consider improving your offer and your proposer will try to drum up support from other non-voters.

If you dont get accepted it's no massive blow as you will be able to enter a DMP and paying back £217 per month (the amount that I assume you will pay to your IVA) will clear your debt in just over 7 years. Plus you'll be able to pay more if your situation improves. An IVA will swallow up all your spare cash for 5 years no matter how much more money you earn.

Piggybank_2

Thanks for that - at least I know theres still something I can do if they reject the plan. How would I go about proposing a DMP - do I do that myself with my creditors? Do they freeze the interest etc if you enter a DMP?
Sorry for all the questions but I'd love to get my situation sorted - I'm not trying to avoid paying my debt, I just want to know its under control!

Thanks

james32_uk

Who are you applying for an IVA with? If it's anyone other than those recommended by CCCS or Payplan then if your IVA fails you must ditch them straight away. CCCS or Payplan will take you on and try to get a DMP agreed. It's important you use either of these as they are fee-free for a DMP and creditors will be more likely to accept DMP proposals from them. Under a DMP CCCS or Payplan will try to get your creditors to accept a repayment plan and try to get interest stopped. It cant be guarenteed but will happen in a lot of cases.

Hopefully your IVA will go through! Who are your main debtors?

SILENTLUCIDITY

my payback percent was only 18 % and mine was accepted so dont worry too much

james32_uk

SILENTLUCIDITY wrote:

my payback percent was only 18 % and mine was accepted so dont worry too much

That's a massive result! Mine was rejected at 31% so it just goes to show it depends so much on who your creditors are.

Who were your creditors and how did they vote?

SILENTLUCIDITY

Creditors tsb the biggest then mbna ,halifax,direct line,capital one,hsbc,monument,cti cards,morgan and stanley,nationwide and a couple of small debts voting was 83.4% still waiting for paperwork of full breakdown

james32_uk

Let us know when you get the full breakdown. Useful to know to help others work out if an IVA is likely to go ahead. I wonder if some of your creditors had sold on the defaulted debts to DCAs as they'd be more likely to accept a low offer.

pixie1

Does anyone know the avg pence per £ that is accepted?

Also, how long does it take for IVO's to be sorted out / approved?

Oh and one last question, can i continue to pay my dmp whilst seeking an IVO?

Sorry to high-jack this thread

Pixie

james32_uk

See below:

pixie1 wrote:

Does anyone know the avg pence per £ that is accepted?
Totally depends on the creditors. If you've got HSBC for example they dont normally accept anything under 35%

Also, how long does it take for IVO's to be sorted out / approved?
Took me 10 weeks from first talk to Payplan

Oh and one last question, can i continue to pay my dmp whilst seeking an IVO?
Yes.

Sorry to high-jack this thread

Pixie

Piggybank_2

Hi All

thanks for all the info. The debt I owe is:
AA loan 10900
Egg card 2700
Egg Loan 4888
Overdraft 1750

What do you think my chances are with the IVA. Also, having looked up a lot on the internet I think maybe a DMP would be my best bet. Do you think I should allow my practitioner to carry on with IVA in case it does get accepted or should I start a DMP with the CCCS. Its all very confusing!
Thanks