day 1 IVA 's we applied for have been accepted

[cat 1]

Hello.Have just had confirmation that the IVA 's we applied for have been accepted with modifications. We are paying 100pence in the pound, over 6 years and have to remortgage at 5.5 years to 85%.We will have to declare all income over the 'allowed' and 50% taken again.Does this sound ok? I'm panicky and unsettled and confused and feel everything is running away.Will people/credits still potentially hassle me and I've just found this forum and read that I 'm not supposed to have a cheque book? And possibly my current bank might reject me and give me a month's notice...stressed and tired.Mandy

[MelanieGiles]

Hi cat 1

Well done on having the IVAs accepted. Whether you have to pay over 50% of any increased income will depend upon the exact wording of the IVA proposal and any modifications. This really is a question to directly ask your IP, as they have detailed working knowledge of your file, but I have to say these provisions are almost always put forward these days.

There is no problem with you having a cheque book - where on the forum does it say you can't? And with regard to your current bank, if this is with someone you owe money to, or HSBA or First Direct, you will need to open a new account as soon as possible. If not, then stay with your current bank.

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

[cat 1]

Thanks.Thought I'd read the cheque book thing on one of the messages.Might be misinterpreting stuff slightly atthe mo because of increased anxiety.Will it ever settle...seem to only read the negatives at the moment.Scared of living without credit but very glad to have sorted something out.Thanks again for replying

[OPTIMIST12]

Dont be scared of living without credit cat 1. The whole basis of an IVA is that you have enough to live a perfectly manageable - but fairly frugal- life while it lasts. And the bills and hassle will stop now it has been approved. It is a legally binding agreement. I think once things settle down you will be glad to be rid of the "downside" of credit. Good Luck!!!

PS Bearing in mind you are paying 100% -would you be able to say what the modifications were?

[cat 1]

Hello.Thnaks for that/Late reply as went to bed and managed to sleep!!! Modifications were the 6 year, rather than 5, remortage, and the fee the company charged reduced..not sure I understand the other things really.Cat 1

[MelanieGiles]

If you do not understand the modifications, and bearing in mind that you have to agree to these before the IVA can be accepted, I suggest that you make contact with your IP today as a matter of urgency to have them explained in the context of how they will affect you over the next six years.

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

[OPTIMIST12]

Hear Hear!!! It is SO important to understand and consider Modifications. I consider myself to be fairly (!) sensible but if I have done one thing wrong in my IVA so far it was probably to NOT fully take in all the Modifications that were read out to me. My company were not to blame at all and in fact were very good - they read them out to me in full and asked me to stop them at any time if I did not understand any or needed clarification. I think I was probably too busy jumping up and down with the relief of hearing the "Yes" vote and did not take everything in fully.

As it turned out I had a quite a few Modifications but most of them were simply straightforward or standard and I had none to really worry about - probably the implication of the Minimum Dividend one was the only I did not fully understand at the time (bearing in mind that balances keep going up until the meeting). I had no equity etc. to worry about. So do make sure you understand your Modifications cat1 as yours sound a lot more far-reaching than mine were. Good Luck.

I actually took my Creditors Meeting call on my mobile walking along a blustery Blackpool beach - not ideal (my fault) but VERY bracing!!

[cat 1]

I might be too late...I know I'm sounding like a total idiot.I know I do 'shut down' when stressed, but I'm wondering now if I'm too late to have changed anything. The 'meeting' was on oct 29th.Prior to this I/we sent and signed all the propsals that were to be submittedto the creditors at the meeting. We had signed various pages but advised NOT to date them...I'm feeling very stupid now! Anyway I have 11 creditors-they voted in favour.My partner has 3, of which 2 were joint. Anyway one was Northern Rock.They hadn't voted in favour for me and wouldn't for my partner.Anyway after much negotiation and communication the IVA for both of us was agreed.It now went over 6 years and not the intended 5 and the house had to be re mortgaged at 5.5 year for 85%. They did verblly go through the amendments with me but each major creditor had a different stance and this kept cancelling out the others. It was very complicated to hear but I didn't really mind this so much as I was aware I would get the paper version to read and question. Dates for SO's were established and then I asked the start date of the IVA's. He said now, was dating them from 8th Nov.I haven't recieved the paper version yet, but like I say sounds like I'm too late. Their was definately stuff about 50% of anthing beyond out regular earnings having to ge to creditors, annual finacial reviews. The 85% of the mortgage was the real bit I struggled with.There is already £40.000 equity involved.Cat 1. I'm obsessed with reading this site now. Just wished I'd discovered it earlier.What is minimum dividend.That was mentioned

[OPTIMIST12]

Regarding the Minimum Dividend - as I understand it - your IP prepares an estimated Dividend - i.e. percentage of the total debt that will be repaid during the IVA - based on the figures submitted on your initial proposal. These figures will, however, increase by a certain amount due to interest and charges that may be added between preparation of the proposal and the date of the creditors meeting - or when creditors finally submit their formal claims and it may be necessary to make some extra payments to cover this. I panicked about this a bit at first but - in my case at least - from what I have found out since - the actual figures will be fairly small. Anyway - the Minimum Dividend Mod requires that you repay the original percentage divivdend of the actual amounts CLAIMED - as against the original proposal figures (I think!!!).

Like Melanie says - hope you will manage to contact your IP asap to go through any queries and put your mind at rest.

[MelanieGiles]

I know of an Insolvency Practitioner who was recently fined £7,000 by her professional body for not making sure that a client had understood and agreed modifications. This is a dangerous area for IPs, and yours will want to ensure that you fully understand everything before the IVA is accepted.

As a result of this news, I have recently changed the way we operate creditors meetings in my office to ensure that clients have sight of the Chairman's Report and can therefore read throught the modifications after we have advised them of the details by telephone. The documents are either e-mailed or posted, and we do not confirm that the creditors and debtor have accepted the proposals until we have written confirmation from our clients. I suggest that you ring your IP first thing Monday morning to get an electronic copy of the reports to read through. If they refuse to do this then you have grounds for a complaint.

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

[cat 1]

thank you to both of you.I will ring on Monday morning

[OPTIMIST12]

Please post an update if you get a chance on Monday - and Good Luck!!!

And may I say what an excellent development Melanies new modification in respect of modifications sounds!!!! It would be great if this or something similar could be universally adopted - as this really does seem to be one area in the IVA process where a little more time for people to collect their thoughts would be a big plus all round.