CREDITORS MEETING. AM I WHISTLING IN THEW WIND

[Worried Man]

I am new to this so apologies in advance. My wife and I have accumulated debt (all credit card debt) over the past 20 years to the region of £350K. (I know it is a huge sume and we are very embarrased about it). For the last few years we have simply being paying off one card with another but got to the stage end last year when this was no longer viable.

We have been seeking help with a joint IVA through Grant Thornton and a creditors meeting is set for later this month. The offer is 25p/£ and done over a short time line as we have no dispossible income (and little prospect of that changing over the coming years)but do have assets totalling £100k which we will release to fund the IVA. Total of 37 creditors ranging from £470 to £47,000. Not listed them all but the larger debts are:
MBNA 47K
Halifax 30k
RBS £20k
Frizzell £18K
Co-Operative Bank £28k
TSB - £23k
Barclaycard - £22K
Egg £14k
Natwest £10k
Tesco £10K
Citibank £12k

We are really worried about whether IVA will be successful because short of agreeing DMP with creditors, most unlikely, our only option is BR, which I am desperate to avoid. Any gut feel as whether IVA will be accepted? I do worry about MBNA because they are almost certain to vote no, they have been most agressive in chasing payments and will not accept token payments. The draft proposal prepared by GT does highlight huge difference in what creditor will get for IVA 25p/£ against BR 3p/£. Not sure how arrived at 3p figure but assume it is correct. Why would they vote no in such circumstances

[Worried Man]

Apologies for spelling mistakes above. Too early in the morning.

[Sarah]

Morning

First of all i just wanted to say that there is no reason to be embaressed don't forget that we are all in the same situation on this website and you can speak freely here. In regards to the acceptance from what i have heard i think that the only one that you are going to have the problem with is MBNA but the story may be different at the moment and they may be more open to IVAs but one of the Experts would be able to give you more advice.

[tracy.h]

Hi and welcome
This forum is here to help people and advise,im not an ip so on your figures i would not be able to advise but one of our technical experts will give you the relevant advise you need.
Grant Thornton is a reputable ip so i should think if he didnt feel you had a case then he wouldnt be proposeing an iva,it takes a lot of hard work on there part and they know what they are doing.
The wait for a creditors meeting is very stressfull,regardless to the amount you owe your creditors and the calls are threatening and unpleasant,but you have had the courage to address your problem and that is a big step,so well done for making that desision.
I wish you well and hope things will work out for you.As i said there is always someone here to answer your questions or just to chat and give support.
Goodluck
Tracy

[ivoriva]

Well, I would think you have a decent chance as at least no creditor hold a majority vote (25% or more). I think MBNA only holds 13% and the next biggest is still less than 10% so that is good news. I think generally speaking RBS & CO-OP are very receptive to IVA's so a yes vote from them will help. Halifax are normally ok too. The bottom line is every case is treated on its own merits but GT wouldnt be putting the IVA forward if they didnt think it had a very good chance. GT have a very good success rate. It is very common at the moment for an adjournment of the creditors meeting to occur in which case you may have to agree to modifications. Always consider such modifications very carefully, make sure you understand them and only accept them if you are sure you are happy with them. It is all too easy to sign away without fully understaning the implications and then fail on the IVA further down the line.

Try not to worry about the calls from creditors. You will find certain creditors will be on your back from day one. You cant pay what you cant afford, and if they dont want token payments then dont offer them. It may take a while and it will be hard, but eventually the calls will dry up as the creditors meeting date approaches.

Regardless of the figures it is a stressful experience upto and including the creditors meeting date. You need to be strong and keep your head high. Do feel welcome to post on this board, there are always people who have or are experiencing what you are going through. And there are also experts in the field (of which Im not one!!) who will be able to answer technical queries you may have.

All the very best of luck...

[Adam Davies]

Hi
I agree with Ivoriva,no one creditor has a deciding vote and you are using a very reputable company.Having many creditors can also be an advantage.
Good luck to you

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp