last minute IVA opinions

neddis

Sorry new here posted before in the wrong thread

Hi everybody,

This is all a bit last minute really as my creditors meeting is tomorrow (3.00pm 13th Sept), but i'd appreciate your opinions

I currenty owe £75K:eek: to 9 creditors, I'm single live with parents have no assets, Payplan have worked out a payment of £361 a month from my income of £880 which works out to 20p in the £1.

This seems such a low dividend I just cant see it being accepted, still i'll soon find out. Any views from your goodselves would be appreciated. Cheers

Conor_3

I suppose that one way they may look at it is that something is better than nothing.

Anyway, good luck for the interview.

mightymouse

Hi

Your creditors can take care of themselves but from the limited information provided the advice in my opinion should be bankruptsy.

The IVA is too high % and will fail within say a year.

backontheup

I agree with mighty mouse - your best option would be bankruptcy in this situation. I would imagine that 20p in the pound will almost certainly be rejected as most banks will now only settle for 40p in the pound. You have no assets, and even at 20p in the pound it means that almost half your monthly pay is going to service the debt, and you have to consider the possibly of it failing if anything changes.

As I see it (as a bankrupt) the impact of an IVA is the same as BR.

Good luck with the meeting, but it might be a blessing in disguise if it is rejected.

Stay strong :-)

neddis

Thanks all.

BR is no problem for me as such, good family supporting me. Though i am fairly happy with the monthly offer compared with what I was paying however why would an IVA be turned down when its obvious BR would realise less of a return ?

backontheup

BR is no problem for me as such, good family supporting me


The reason why most people avoid bankruptcy is to save property. Why put yourself through 20 years of this, when you can have a clean slate within 1 year? (and 6 to clear your credit rating)

fermi

Good luck with the meeting.:D

wherediditallgo

neddis wrote: »

Thanks all.

BR is no problem for me as such, good family supporting me. Though i am fairly happy with the monthly offer compared with what I was paying however why would an IVA be turned down when its obvious BR would realise less of a return ?

I don't think the creditors compare the two options. They'd consider the IVA first, probably turn it down, at which point you would then go ahead with BR if that's what you've decided to do. Creditors often turned down IVA offers, which they wouldn't do if they always considered what they'd get if the person went BR. They think (a) the debtor has more money available than their offering, & (b) the stigma of being BR & possible loss of property will put people off doing it. In a lot of cases they're right - some people do struggle with an IVA they have little hope of continuing with to its conclusion because they're so worried about what friends/family etc will think of them if they go BR, & also they don't want to lose a property they've put a lot into, which is understandable. But a year or so later, many of those IVAs fail & the person's looking at going BR anyway, having spent a load of money on fees & when they could have been BR & discharged by that time. If you have no assets, there's little point in trying to pay an IVA that will be difficult to sustain, though I understand the stress & panic that might make someone decide on it at the time the decision has to be made.

Going BR isn't always the best option, but for some people it is the only workable option given their particular circumstances. There's a lot of misinformation around about going BR, some of it perpetuated by the media, creditors & debt collection agencies. That's why forums like this one are essential.

neddis

Once again thanks to all, only three hours to wait not sure what result I want now. The whole things seems crazy and very frustrating.

tigerfeet2006

Hope the meeting went the way you hoped it might.

All the best

neddis

Just had the call, IVA accepted. I know BR was the cheaper option and it's a long road ahead but for now I'm over the moon and a big weight lifted.

Thanks to you all for advice and best wishes.