IVA - experiences? anyone's not been accepted?

Hobo17

just wanting to hear experiences of those who have opted for an IVA, especially if it has not been accepted for any reason. What is likely to happen at the creditors meeting - is it likely that it will just be an outright "No" (as they must realise then that my only other option is a DMP or bankruptcy where they will get a similar monthly payment anyway) or will they just suggest modifications and agree it with relatively little hassle? Payplan are currently putting my case together so fingers crossed I will have a date for my creditors meeting shortly. Mine will be for a debt of 59k, payments will be somewhere in the region of £575 per month so I'd imagine that, taking into account the fees that I will be charged, the settlement will be somewhere in the region of 50p in the pound...

taplady

Hi. we've just started our IVA but it took a long time to sort out,partly due to them losing my paperwork for 2 weeks and then at the creditors meeting nobody voted.it took 3 meetings to get any of my creditors to vote which I'm told is unusual.even now we're still awaiting paperwork to sign 3weeks later!I'm not too happy with our firm(Baker Tilley) as they dont tell me anything and if I didnt keep ringing them I'm sure I'd still be waiting for it to be completed! :mad: I hope things settle down now that its up and running and ihope yours goes more smoothly than mine! :rolleyes:

piggybank1

It is very rare....if it ever happens....that creditors will not take your iva. If you are in that situation (just like me!), they know that the only true option is bankruptcy, and then your creditors get nothing.
If the amount of debt is high, they may put other ties on you, ie sending your payslips into your iva consultant every three months and taking half of any pay rises. I would be amazed if anyone has ever been rejected.

Hobo17

that's what I'm hoping piggybank... I was expecting that they would have some claim over any bonuses or payrises anyway - is this usually written into your proposal? what do they usually ask for?

mattp_3

Taplady sounds as though you've had a bad experience, I wouldnt say that is representative of all IVA's.

Payplan (formerly Shaws Insolvency) have an excellent track record for getting IVA's approved (somewhere in the region of 90-95% successful) - this is why many of the Citizens Advice Bureaux refer IVA cases to them.

Some creditors have general modifications that they always request be added or amended but they are rarely anything major.

a 50% dividend is quite high for an IVA, so the only reason creds might not approve the IVA is that they may want to see that you have tried a debt management plan first (obviously they would like to get 100% of their money back if possible!)

The normal reasons for your IVA being declined is creditors stating that your expenses are too high or that they want you to include an element of the equity you have in a property.

You have nothing to loose by trying the IVA, if it does get rejected (which is rare as Payplan wouldn't do all that work if they though it would fail) you can always go for a DMP or Bankruptcy after - or wait and try again for the IVA in a few months??

Good luck

mattp_3

"Cost of living/inflation" payrises tend to be absorbed into your expenses anyway, so creditors will not necessarily expect you to increase payments.

But if you get a promotion with an increased salary, you will be expected to pay the extra money into your IVA.

Overtime and bonuses - creds normally ask for around 50%(this is one thing they may ask to be changed at the creds meeting), but it does vary - it will be down to the Insolvency Practitioner (the Supervisor of the arrangement) to check your payslips periodically to assess this.

taplady

We were told that half of overtime and bonus's had to be paid to the IVA but what happens if your income drops?

piggybank1

If your income drops, your IVA consultant will deal with this. Every year, when you do your review, you will list what you can afford each month, based on your monthly take home pay. If this drops, then your payments will drop. I started on £250 per month and now pay £265, will half of bonus and overtime added on top. I send in my pay slips every three months to be checked.

It's the job of your consultant to look after you as well as your creditors. If you struggle, tell them.

After reading some of these sites, I think I have a very good consultant in Clark and Lowman!!

taplady

thanks for that piggybank !