creditors who sell their debt

[caraf]

Hi
Please could someone tell me why and how creditors sell their debt so quickly ?? what do they use get for it ? and then what happens to the company who has bought the debt, do they usually vote on a iva ?

[debbiw]

So because MBNA seem to always vote no, it would be in the interest of the debtor, if the debt was sold on before the creditors meeting. Is this right?

[Skipper]

Hi
Creditors selling debt on or/and not voting are not necessarily related.

If any bank don't vote it could be because they are content that the others creditors will do the right thing and need not step in, if you like.If however most of the debtors are catalogue etc that don't tend to vote they might vote to ensure something decisive happens.

If they vote NO -then they don't agree to the IVA offer.Voting No is aways against ther debtor's proposal.

"Always think outside the box"

[Martin2011]

Some of my creditors sold on my debts very early in the process - I think it was decribed as factoring and had something to do with the relative value of money over time, i.e., a pound today is worth more than a pound in 5 years (usually) by a calculateable amount.

I've read previously that if your circumstances improve markedly during an IVA, eg, higher salary, your creditors can increase the total amount of pence in the pound you will have to repay to them. I guess that's fair enough in many respects, but would the same apply if your debt has been factored? Wouldn't the purchaser of the debt only be entitled to the dividend they originally purchased?

Martin

[MelanieGiles]

They purchase the full debt, Martin, not the dividend value, so they are able to stand side by side with the other creditors for the full amount.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Companies buy blocks of debt for approx 10p[guessing]
Some will return zero,others partial[IVA] and a few the full amount.
If you consider that 30% of IVAs fail then a block of debt purchased at 10p all going into an IVA,will now stands them in at 15p.They then have to wait for several years for a return,increasing the cost.
I imagine that it is a fairly fine line regarding making a profit or not.


Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[Martin2011]

I so love that you have the answer to that... my confidence in this site goes up every day!... I know circumstances can change, but we started off with an agreement offering 75p/£ and have since increased payments to the point where we are now almost certain to repay 100% before the 5 years are up (barring unforseen disasters). I don't really mind that, in many ways will feel good to have repaid everything... Having said that, just looked at the agreement and note that whilst the total debt is 84k, IVA fees are 11.5k, so I guess we'll have to pay those too if we reach the 84k before the 5 years are up...? For a little while there I toyed with the possibility that the arrangement would stay at 75% and we might actuially finish the process earlier than planned..... C'est la vie....and thanks to you both for being so brilliantly fast at providing answers to questions I've had for ages, but wouldn't want to ask my IP!!

Martin

[MelanieGiles]

Martin

Don't forget that your IP is there to help you and not to sit in some ivory tower. If you have a question, ring them up and talk to them - as they do have detailed knowledge of your circumstances.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Martin2011]

Many thanks Melanie, you're right of course, and in fairness he has always responded to queries quickly, but always by post....I think I just find it easier somehow to write than talk... people that know me would find that amazing, and to be honest I know it's because I'm still ashamed for having got into this mess in the first place...This site and especially yours and Andy's advice is helping though... I do feel more confident now and certainly less terrified at the thought of raising issues directly as we go along...

Thanks again,

Martin

[MelanieGiles]

That's what this site is all about Martin, and I am glad that you are finding the support you need and can also give out encouraging. A

ll of the forum experts are pretty passionate about helping others along the way, and this is particularly so of the experienced posters who are here to share their own personal experiences - from which even crusty old IPs can gain valuaable knowledge.

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

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Martin2011]

Well it's certainly been of great value to me Melanie...and I can see it being a great help for the rest of the journey... I intend to keep posting too, don't have heaps of experience yet, but am hearing people describing the same worries and fears that I've been through, especially those just getting started in their IVA's and sometimes it's just nice to be able to offer reassurance.... Time for sleep now though, early meeting tomorow...

Many thanks again,

Martin