...and what sort of reasons through peoples experiences have they given?
My situation is one that I know Im insolvent and my debts are unmanageable.(I have about £300 a month disposable income and my c ontractual payments come to Over £1200 PER MONTH.)If my IVA is not succesful then bankruptcy is my only answer (A DMP would take over 40 years WITH all interest and charges frozen).
Bearing in mind this what reason could creditors give not to agree an IVA (with evidence to back up my income,expenditure and the fact I have no assets or equity?). Surely even if I didnt fit their own regulations/criteria accepting an IVA is better than bankruptcy for their return?
Would creditors cut off their nose to spite their face and decline an IVA request on the basis that they think you wouldnt go through with a bankruptcy application?
Last edited by anais743 on Sun Jan 18, 2009 4:36 pm, edited 1 time in total.
'There are no secrets to success. It is the result of preparation, hard work, and learning from failure
If your IP submits their proposals in line with the IVA Protocol, creditors are obliged to give their reasons for rejection. Most good IPs do not see rejections too often, but there can be any number of reasons why they might want to reject - both for personal and commercial reasons.
I feel sure that you will be successful of the day.
Hi
Even though the return in bankruptcy is very often far less than in an IVA creditors will reject an IVA, if they are not happy with it, because most people will drop into some form of debt management programme rather than bankruptcy.
If bankruptcy was mandatory following an IVA then I'm sure that we would see less creditor rejections, on the other hand we would probably see less IVA applications!!!
Regards
The rejection must be for a cogent reason which must be sustainable otherwise creditors could fall foul of TCF and the Protocol.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Creditors can reject for a number of reasons even if they know bankruptcy leads to a lower return. For example, HM Revenue and Customs will treat previous non compliance as a reason to reject irrespective of the pence in the pound. Other creditors do not like recent spending on cards or recent borrowings to fund car purchases.
Each IVA proposal has a background story and if this does not adequately explain the debts then creditors may also reject. I once had a client who owed £60k and when we asked what the money was spent on he replied 'new school uniforms'. We obviously had to extract some more info from him before we put his proposal to creditors.
That's a lot of money for school uniforms! Sounds like he was kitting out the entire school for that much!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
