We are in the process of drawing up our IVA proposal, and are looking at a dividend of 11p in the pound. Having discussed with my partner, we have done some chopping and changing and are now at 14p in the pound.
We owe to creditors just over £130k. We have been advised by our IP, that this could be rejected!!
My question is does 14p sound too low, for creditors to accept?
Is their any hard and fast rule as to how low a dividend creditors will accept?
In BR our creditors would get nil. Helen; yes we are at the lowest, in terms of cuts to expenditure, that we can get to. 14p is really tight, but we are sure manageable.
Failing that we will go BR. We have high mortgage costs / second charge costs, and were advised that creditors may well look at this, and ask that we look at renting, which really defies the whole point and objective of an IVA.
If we are to surrender our property, then we will go BR for sure. We are hoping to propose an IVA so as to payback as much as we can afford to our creditors.
If we go BR then our unsecured creditors lose out, and so do our mortgage and secured loan creditors - so no one gets anything.
Cath; you mention David Mond - who does he work for?
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
we're with David Mond through cleardebt and although our dividend wasn't that low they have always been very good with us over the past year including lowering our monthly payments with other half's car blew up to enable us to lease a car. I would recommend them in a heart beat.
I'm assuming you've shopped around and spoken to a few companies? Always take case specific advice of at least 2 if not 3. A good IP wouldn't put a proposal forward that s/he wasn't certain was the best offer on the table and feel confident with it. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
we were in a bit more debt than yourselfs. As we are self employed we had to go for a R3 meeting with our IP. we were also told that it was touch and go if it would be accepted or not. what were were offering was 11p for an IVA against 9p BR.
we came away from the meeting very worried that it would not be accepted, but thankfully it was and our first payment to the IVA left our account today
I hope this has been of some comfort to you
A low dividend is never a real problem, although you do have to be realistic and ensure that the repayment represents a sensible position for creditors. The problem arises when you have a low dividend and high expediture in excess of creditor guideines - in which case IPs have to advise that the proposals may not be acceptable.
We are currently talking to a very reputable IP, hence the reason why we are trying our damn hardest to offer the best dividend possible, without running the risk of having to go BR 9 months down the line, because we have disillusioned ourselves.
sweet wrote:
we were in a bit more debt than yourselfs. As we are self employed we had to go for a R3 meeting with our IP. we were also told that it was touch and go if it would be accepted or not. what were were offering was 11p for an IVA against 9p BR.
we came away from the meeting very worried that it would not be accepted, but thankfully it was and our first payment to the IVA left our account today
I hope this has been of some comfort to you
It is so important to make sure that the monthly payments are affordable not just for now but into the future as well. A little more time spent considering things now, will be time well invested in the long run.
14p in the £ across £130,000 is over £18,000 returned to creditors. 40p in the £ across £30,000 of creditors is only £12,000 of a return. It is all relative and when the dividend is low on a large amount of debt there are no other alternatives rather than nothing in bankruptcy.
Good luck with the IVA but I see no problem with the dividend.
