creditors

[elizabethr]

Interested to know how some creditors may react to IVA or DPM - anybody had dealings with

Alliance and Leicester (MBNA)
Barclaycard
Mint
Tesco
Marks & Spencer

[coupleplus1]

Hi Elizabeth,

I had a tescos loan and they were supportive, they queried our childcare costs but were fine about them after I said I could produce evidence, and my husband had MBNA through the Abbey though and they were supportive for our IVA's.

[elizabethr]

Thanks - thats helpful. Am still deliberating over whether I can possibly manage without going into an IVA but it seems a sensible way to go. How do I get a list of IPs and is it better to go local. Do you have to meet face to face (is it best anyway). Do you have to attend the creditors meeting or does the IP do that.

[carlmcmullen]

How much do MBNA represent (in Value) as they are currnelty going through a period of rejecting IVA's unless you have already tried and failed a DMP with them.

Carl

[MelanieGiles]

Hi Elizabeth

In my experience the majority of those creditors are generally supportive of IVAs and I have not encountered problems with MBNA as mentioned above by Carl.

Following the results of today's IVA Forum in London, creditors have now signed up to accepted IVA protocol, which makes it difficult for them to reject non-protocol based IVAs, although the choice is ultimately the creditors whether to accept or reject.

[elizabethr]

MBNA percentage is about 33% of total debts. Can you clarify how it works. My understanding is that currently 75% does that mean that because MBNA have more than 25% stake and they don't agree it would be rejected and how will it work when the agreed % changes to 50. Any idea when that might come in.

[MelanieGiles]

If all of your creditors were to vote, then MBNA have 33% of the decision making power at the creditors meeting, and if they were to reject then they could not be outvoted.

We were told today that SIVAs may come in by October 2008, but they could also be delayed until April 2009, beacuse the application to Parliament can only be made twice per year during those months. If MBNA do reject, you could always do a DMP until the new procedure is available.

[emma_t]

Hi elizabethr

I would advise taking some advice from a couple of iva providers before making a decision.
have a look at the reviews on www.iva.com as you should find these helpful.
All initial advice I recieved was no obligation, no upfront payments and I went with the company I had total confidence in, this was very important to me as 60 months is a long time.

The first company I approached 'booked' me phone appointments, I always felt rushed, never spoke to the same person twice and was given conflicting advice. I knew no better as had never heard of iva's before and though this was normal, then luckily I found this forum and realised that it was not normal. I then contacted the wonderful Melanie Giles and her team and was guided through the whole thing and this really did help lift a lot of the stress as I knew i was in safe hands and could pick up the phone if I was worried about any small detail.

Good luck and stay in touch woth the forum as it is a tower of strength
Emma x

[Andrew Graveson]

Hello Melanie,

A lot of people are entering into DMP's with DMP companies such as ourselves in the expectation that the SIVA route will open up soon. It's a useful way of finding a "holding position" until such time that other options can be considered.

Based on what you heard today how do you assess the likelihood of a 2008 or 2009 introduction of the SIVA?

[MelanieGiles]

We would hope for October 2008, but I would not be suprised if this was not further delayed due to the need for legislative change.

[rickyg33]

Interested to hear what SIVA is and how proposed changes will affect IVA's.

[MelanieGiles]

SIVAs basically are going to be a much more simplified version of the current IVA procedure, and available to anyone who is not self-employed with debts of less than £75k. The main advantages for the consumer will be that there will no ongoing review of income and expenditure, and only a 50% majority of voting required at the creditors meeting.

[OPTIMIST12]

Thats very interesting - presumably the SIVA will therefore cover the majority of new IVAs. (Would not have helped me I am ashamed to say - debts far too high).

Can any of the experts say where the idea for the SIVA originated from - is it a government initiative or is it a Creditor initiated scheme? I am assuming that as it requires legislation it must be government based - but with the support of both Creditors and I.P.s / CCCS / CAB etc?

Wow - no ongoing reviews is a major change!!!. I assume therefore that the payments are guaranteed for the duration - that will certainly be a BIG "plus" for the debtor.

[MelanieGiles]

The idea for SIVAs was initiated by the Department of Trade and Industry was back in 2001, and I was actually involved personally with the research carried out by Michael Green of the University of Bangor, where the majority of the changes actually originate from.

There have been many different stakeholders involved in the consultation process so far, and we are expecting a lot of debtors who are currently in debt management programmes to want to move to applying for a SIVA.