Am I supposed to attend the IVA meeting 30th July

[Nat]

I finally bit the bullet signed the IVA proposal paperwork, and have been informed my meeting is scheduled for the 30th July.

I have been asked by my IP if I wish to attend the meeting (im going with Clear start) Is this normal? Should I go along or not?
Has anyone else actually gone along to your creditors meeting??, If I go what do I expect??

Im worried its not going to be accepted, I owe 68K
approx:

Northern Rock 26,500
Virgin (MBNA) 11,000
Cahoot 8500
LLoyds TSB 2000
Egg Loan 8000
Egg Credit Card 8000

My IP is only offering £350 a month which im told is 18p of the £,

any idea of my chances?

[scaredkez]

no they ask you to attend but you don't have to, as long as you are obtainable on the day and time of the meeting by the end of the phone, fax or e-mail, i think i have only ever seen one poster that was told they had to actually attend, its all paperwork and the meeting is really just the IP's office waiting for the faxes to come through off your creditors saying yes or no.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Nat]

Thanks for this i had visions of frowning bowler hat wearing "officials" glaring at me shining tha spotlight of shame onto me!

[MelanieGiles]

There is no point in going to this meeting Nat, as none of your creditors will be there. All of the proceedings are carried out by postal proxy forms, although you will need to be at the end of a telephone on the day so that modifications can be discussed with you.

I am afraid that I think your chances of getting Northern Rock to support an IVA only paying 18p in the £ are slim. I am quite suprised that your IP is putting this forward. How long ago was the Northern Rock loan taken out, and is it an ordinary unsecured loan or a "together" mortgage package.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Nat]

its a together mortgage package, and its only 18 months old. I have asked my IP about NR's track record, but have been told that although they are difficult shes sure an arrangement can be made!!

[MelanieGiles]

Well let's wait and see then shall we. I will be very interested to learn the outcome of your meeting, and if I were you I would have a contingency plan up my sleeve.

What is the value of the equity currently in your property, and how has this been addressed in the IVA proposal? And have you paid your IP any money on account of their fees?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Nat]

erm.... not too sure regarding the fees to the IP, the propasal says they will clim the fees through my repayments. I dont have to pay them any money upfront.

i've got approx 6k equity, purchased flat at £131000, mortgage was from northern rock at£123k, £26500 was unsecured "top up" i have a 4k early redemption fee at the moment as my mortgage is fixed rate.

they are proposing a 4th year remortgage as part of the iva. ill keep u posted after the 30th's meeting, but admit im extreamly pessimistic it will be accepted.

If its not accepted my only other option is bankruptcy, surely a creditor would prefer some money back rather than none???

[MelanieGiles]

You would like to think so - but an 18p return over a five year period is not hugely tempting either. It will be at least two years before they see any money. I am curious as to why your IP feels that Northern Rock will accept this offer, when they are rejecting 90% of IVA proposals at the moment, with much higher dividends.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
How do you feel about bankruptcy Nat ?
I would love your IVA to be agreed but would honestly be gobsmacked if it was.
If it does get rejected you could wait for the SIVAs to come into force and then try again as NR will not have a deciding vote then
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Nat]

Hi Andy sorry its taken a while to reply I only just saw your response. To be honest I dont really understand anything about bankruptcy, ie, what exactly is involved regarding my property and if I would have to make any payments afterwards, if so for how long and what effect does it have on my credit rating, im assuming if I go bankrupt Ill never get a mortgage again. Im only 25 and my partner and I want to start a family within the next 5 yrs so honestly dont have a clue what would be better for me.

Sorry for sounding ignorant but whats a SIVA??

[Adam Davies]

Hi Nat
In Bankruptcy your flat will be at risk but you may be able to get a family member to buy the equity in the property from the Official receiver so you will be able to remain and carry on paying your mortgage as normal.You may have to pay a proportion of your disposible income for three years in bankruptcy but the allowance is far better than in an IVA.
You will be able to get a mortgage post bankruptcy[after discharge,generally one year] as long as you have a 10-15% deposit.
A SIVA is a simple IVA where people with debts of less than 75k can enter an IVA with a simple 50% vote from creditors instead of the 75%at present.The IP fees wil be less and thus more attractive to creditors.The 50% vote will mean that NR will not have the deciding vote.
The SIVA is yet to be rubber stamped though.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Oliver]

The SIVA is expected April 2008 so watch this space.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp