Creditors meeting want more £'s

[paula.b]

Hi,
We had our creditors meeting today, of which I was very confident. We were offering 57p in the £. It has come back that the creditors would like another £50 per month. Our income proposal was pared right down, we have been living to this budget for the past 3 months and it is hard. Only this week, have my son's school photo's arrived - at a cost of £19. What a shock to even consider if we were gong to have them, and if we did have to lose that extra £50 per month, it would be an impossibility to even consider it! I did not speak to my IVA representative, but my partner on telling them after the first call that we could not consider this extra (and the IP agreeing) called back after only an hour to say that creditors had refused to reconsider and that was it. We either accept or not. My partner is not confident that they even tried. Looking back on previous posts, surely there can be some negotiation? The unbelievable thing is that if we were to go down the bankruptcy route, there would be a nil dividend return!? It just does not add up. What do you think my next steps should be?

[sonyse2t5]

57p to the pound is very good a good offer.Mind was only 49p to the pound. Once again this is the second post in this thread column whereby extra ££ has been asked in the modification with a very good offer on the table and no negotiation to reject.

This is a tough call. The Banks are once again calling the shots.

[thebear29uk]

Hi Paula

What would the implications be if you went BR? Are you home-owners and was equity release included? Would your jobs be affected?

It may be that you could hold out that you will go BR if they dont accept. There was a time when 25p in the £ was the norm then a few had 40p as a minimum. I know each one is Individual but a return of 57p compared to little in BR should make common sense to the people voting. If your situation allows stick to your guns and see which way the wind blows.

Regards

Dave

[catullus]

I have to admit that this is a recent and unwelcome development in creditors voting and they all seem to be doing it but TIX most of all.

Their position is often illogical and inconsistent between IVA's and sometimes you can get them to budge but on other occasions they just stand firm.

Personally I think that it is unlikely that your IP didn't even bother to contact the creditors representative because they have a lot invested in your IVA by now and would like to see it approved apart, of course, from wanting to do a professional job.

I'm not sure what to advise you other than not to agree to a repayment plan that you cannot afford.

Perhaps you should consider debt management for a few months with a view to re-presenting a proposal in a few months time by when you may have been able to make some adjustments to your household budget.

Alternatively, if you are sick of the whole process then BKR may be something that you should consider.

[lily]

Well its really your decision, you cant do any more than you have done, if its tough now its only going to get tougher. I find it really sad about the school photo. If I were in your shoes I would seriously think about BR, its not an easy option but if you do go for the IVA, and slogged it out, only to realise you have to remortgage or go another endless mile for another year.

I think if it were me I would go BR, five years is such a long time in a childs life, I would consider that I had put my best foot forward and the greedy crocs cant let me live so stuff em, sorry for saying that but your offer is such a good one, I dont think they deserve it. BR would put an end to it all, I know theres the house and everything, its not easy but neither will this impossible IVA be.

You would have to consider everything carefully and relate it to your own circumstances.

I feel for you I really do, I wish you the very best of luck in whatever you decide to do.

lily

[paula.b]

Thanks for your advice. I really thought we had this cracked, but sadly not the case. BR has never been a consideration up to this point. We have invested so much time, hard work and money in to our home, and couldn't bear the thought of losing it. Is there no possibility at all in keeping our home if made BR? There is very little equity in the house, as we re-mortgaged just before we began the IVA process. As part of the proposal we are offering £10k which is retained by the building society at the moment on completion of some outstanding works and re-valuation.

Is there any mileage in approaching our IP and asking to consider offering a compromise proposal, or canvassing creditors who have voted no - at this point I do not know which of our creditors voted or not.

[coco]

Hi Paula,

The same happened to me at my meeting i had to find an extra £40 pw the only way i could do this was to take my daughter out of playschool for 2 days a week and the inlaws agreed to look after her it sadly did not work out and had to put her back into playschool, this is were our IVA began to fail i was so blinded in the fact that i just want the IVA to be approved i agreed instead of being realistic. My advise is be cautious 5 years is along time (I am now BR but i paid almost 4k into the IVA)



view my blog http://coco.blogs.iva.co.uk

[lily]

At the end of the day its your decision, if you can make it work for you. I dont know the answer to the other question, its in the hands of the creditors really. Your IP will want it to work.

The house is only bricks and mortar, you have to be able to live, there are a few here that have had to face the prospect of losing the house, equity can be bought back by a 3rd party. Consider your options carefully before deciding what you want to do. Its only a home now because you live there.

Good luck, I hope that you manage to move forward the way you really want to.

lily

[sonyse2t5]

This may sound cheeky but did your IP lower their fees to assist in the matter - a personal touch that is often lacking with corporate IVA firms - the fees can gobble up 18% of the eventual IVA payments. This is the bit people don't want to mention but in truth fees are paid out of your IVA payments.The more fees the less the creditors get.

My IVA firm had to cut their fees from 10K to 7K.....creditors got 3k more and a extra £35 mod.

It is a shame if the IVA don't succeed now....so close...BR is only a LAST RESORT. A public one too. Aviod this if you can.

[MelanieGiles]

To echo Catullus's comments - in my practice we fight tooth and nail for our clients when requests for increased expenditure are raised, and until very recently were usually able to arrive at a sensible compromise acceptable to all parties. However over the last two weeks we have seen a very changed attitude, and to be frank one which is likely to result in more abuse of the IVA process rather than improve those areas creditors say still need to be improved.

I have had one senior member of staff on the telephone for most of the day today, on just three creditors meetings, dealing with requests for additional contributions and attempting to negotiate on a sensible and commercial basis, to no avail. Personally, I find this offensive, as it suggests that I did not get the proposal right in the first place, but this is what we have to work with at the moment and must live with things.

I just wanted to reassure all forum members that the majority of IP's and their staff will spend as much time as necessary in attempting to get clients proposals accepted, as we invest time and resource of our own in doing so, and to simply not bother to try to change minds would be economincally crippling.

I hope you are able to reconsider matters sensibly Paula, and ensure that the decision that you make now is the right one for you and your family into the future. I wish you the very best of luck.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
This is the second post today where a person has been asked to increase their monthly payment and I can't see the logic behind it.
Maybe you could ask the IP to allow you to keep the first £40 of any pay rise or overtime to compensate for the increase.
It's your call,sit down and have a good think about it.
If Catullus is correct and you say no then maybe your IP will go back to the creditors and they will agree to the original figure.
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

[bagpuss]

i just think it sounds so unfair...i thought it was all about giving whatever you have ... as much as you can...making your best possible offer....afterall isnt that all any of us can do.

So to then be told...your best isnt enough is unfair...what do they want...??? you cant give them what you dont have, you cant do more than you already are doing...asking for the impossible is unhelpful and going to lead to problems further down the line...cant they see this !!

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/