Are creditors now accepting lower divends than they were previous or is the average still about 32p in the pound as this is one of the reasons many people were awaiting the arrival of the sivas or is it going too leave many people with no option except to go down the bankrupcy route unless the creditors are going to become more dmp friendly.
I think it will still all depend on your individual circumstances when you put your proposal foward.
Melanie has done an IVA with a dividend as low as 6p in the pound.
Sharing from experiences of dealing with debt
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Hi
I would guess that the average may have reduced due to peoples disposible incomes reducing.
The SIVA has now been put on hold so the options are still bankruptcy, IVA, or DMPs
Regards
Since the introduction of the protocol the unwritten informal rule that the minimium dividend acceptable of 25p has been removed by most creditors. This does not mean that you can offer less it just means that if your circumstances prevent you offereing 25p creditors will still look at it. As stated above the offer you make depends on what you can afford and not what creditors will accept.
Some creditors still operate a minimum dividend policy while others are more commercial. Given annual reviews, windfalls, bonuses and fourth year valuations creditors may agree to accept a lower dividend with a possibility of enhancement. It does depend, as the other posters say, on your personal circumstances but more so on who you owe money to.
Pure mathemetics suggests that the average dividend must fall if the minimum "generally accepted" dividend has been removed, meaning that more lower dividend cases are successfully going through.
In reality, however, I doubt very much whether there will be any noticable difference at all as creditors are bound to want these cases to be very much "the rare exception to the rule" If they perceive that too many cases are being proposed at lower dividends I am sure that there will be a reaction from them.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
