If an IVA proposal fails do credtors help you with a solution eg DMP or? My concern with the IVA process is that during the 8-12 weeks it takes to get the creditors meeting no payments whatsoever will have been made towards my debts. The last thing I would want is a 'No' and then be left in a right pickle!
'There are no secrets to success. It is the result of preparation, hard work, and learning from failure
If this happens, which I am sure it won't, it is unlikely to affect your position if creditors have not been paid - but in the run up to a creditors meeting, there is no reason why you should not continue to pay token or afforadle payments to your creditors.
If the IVA is rejected, then you will be left with the option of DMP or bankruptcy either of which can be effected relatively speedily.
Speak to your provider directly to address this point. As a general rule, however, it will make little difference whether you have paid your creditors or not during this period as to whether creditors accept at the creditors meeting.
Whilst your provider will be confident that your proposal will succeed otherwise there is no point in pursuing it, there are sometimes where creditors reject. Different providers will have different ways of doing this, for example if you wanted to pursue (hopefully) a temporary DMP then some will do it in-house for you, others will refer you to a trusted associate, possibly until the time comes to re-propose. Nobody would want to see you high and dry.
Hope this makes sense.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I'm with Payplan, and if my proposal had been rejected, I would have been put on a temporary DMP for a few months before trying again.
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