HSBC,

[MelanieGiles]

All the more reason for sharing our knowledge and expertise (from all levels and backgrounds) and enabling new entrants to benefit from advice, experiences and recommendations through forums such as this.

The regulators ought to look more at the way IVA's and consumer debt management plans are being marketed out there by unregulated companies, and the quality of advice actually given - and particularly measure the success rates of those firms of IP's who do actually get the dividend returned which was originally pledged.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

All the more reason for sharing our knowledge and expertise (from all levels and backgrounds) and enabling new entrants to benefit from advice, experiences and recommendations through forums such as this.

The regulators ought to look more at the way IVA's and consumer debt management plans are being marketed out there by unregulated companies, and the quality of advice actually given - and particularly measure the success rates of those firms of IP's who do actually get the dividend returned which was originally pledged.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

Hello Ruby, I have HSBC as one of my creditors. They outsource their IVAs to a company called The Insolvency Exchange as others have confirmed above. My IP told me and my hubby they don't even look at an IVA that does not start at 40p/£. That can be steep depending upon the income and expenditures form. Now we can afford a bit more but not too much more. So, if the IVA doesn't get accepted for what we can honestly afford we will do a BR.

I would hate to start an IVA out of sheer desperation; and fear of doing a BR just to realise less than a year into it we can't manage the monthly payments and find ourselves doing a BR anyway.

Please don't panic. Every IVA is just that, individual.
Just be honest with yourself about what you can afford each month and then stick to it or you may find yourself being pushed into a higher p/£.

Good luck!



All I have left is my humour.

[Oliver]

Sadly I think it will take people going bankrupt to put off companies like HSBC who are demanding an unreasonable % in the £ return. I am all for people paying as much back through their IVAs as possible but for people who are genuinely in trouble and can't get to the 40p in the £ mark I think that it is unjust to refuse them point blank. I am sure that HSBC will argue that they view each case on it's own merits but from my own experiences and from those of others on the board it seems clear that HSBC do hold out for 40p in the £ on a large number of proposals. If someone was not a homeowner and their employment would not be affected by bankruptcy, petitioning for bankruptcy may be their best option. Hopefully once HSBC see how much less better off they are in a bankruptcy they will start reassessing their minimum IVA requirement.

Just to add on to that. If someone is desperate to avoid bankruptcy and has HSBC as a majority creditor and can not get to 40p in the £ over 60 months it may be worth exploring the option of extending an IVA to 66-72 months to get to this minimum dividend.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[DebtDummy]

Oliver, my IVA proposal is for 72 months. I never heard of a 72 month IVA until then. I thought they were all 60 months and the IP was trying to pull a fast one. Why? I didn't have enough information. It may be 12 months longer, but it also allows for the equity release amount to be paid for by the end of that time in the event we can't remortgage or be given money from friends and relatives.

The montly payments remain the same as well. My hubby and I like that because we will not be in a panic if we can't raise the funds by the 60th month. We just continue making payments that we would have been use to making all along. [:)]

Thank you for sharing that information because some people may not be aware that can have an IVA past 60 months.

All I have left is my humour.

[jamesfalla]

Oliver is quite right that in some instances, creditors will accept 72 month IVAs to allow a higher dividend to meet their minimum payment criteria. However, this should not be taken as a standard. Creditors normally look for a maximum of 60 monthly payments and only extend if there are special circumstances. Your IP will be able to advise you on this.

I agree with Oliver that unfortuantely the only way that creditors like HSBC are going to reduce their minimum criteria is for those who can declare bankruptcy to do so. In these circumstances, HSBC will certainly be getting a far less return than they would have done in an IVA and this may make them stop and think about their IVA acceptance criteria.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk

[MelanieGiles]

And to round up some interesting statistics I discovered today.

Only 3% of debtors who have rejected IVA's actually petition for bankruptcy. Of the balance 50% enter into informal payment arrangements, 25% suffer ongoing legal action and then pay up under Court Orders and 22% do nothing and wait for creditors to commence action. Until the percentage of people going bankrupt increases significantly, these creditors will continue with their tough policies.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ruby2610]

Thanks DebtDummy, Had to Laugh at your name!
I need to stop worrying and just think positive. Each case is individual as you say.
Thanks
Ruby

[jannette92]

Hi

We have just started the IVA process. Two of our main creditors are Nationwide and Royal Bank of Scotland. Does anyone have experience of the way that these 2 creditors are likely to vote.
It is a worrying time until we find out whether the IVA will be successful or not.

Thanks
Irene

[Dominic]

Royal Bank of Scotland were the only creditor to bother voting voting at my creditors meeting and they voted yes.

[jannette92]

Other creditors are Argos and GE Capital but the debt is 2k to each of them. Anyone have knowledge of these two and how they vote please.
I really will be glad when all this is sorted and we know one way or another whether our IVA proposal is being accepted. Our IP is offering 44p in the pound but not sure what that means.
If not successful we will definitiely go for bankruptcy as we have no choice, and as we have no assets as we are in rented accommodation I think the best option if IVA doesn't work.

[illihor]

My wifes IVA was point blank rejected by Lloyds, which meant there was no way for it to be accepted through other votes. What I find rather odd is they are phoning almost every other day to ask her to set up a DMP.

We tell them the same every time. You had your chance to get a more beneficial return through the IVA and will not be entering into a DMP as this is not legally binding and you can change any number of things at any time to make the situation dire. Therefore bankrupcy is the only option.

So basicaly they have forced this on themselves where they are going to see little or no return. It's just odd that they would choose this route instead of wanting as much money back as possible.

One other thing that bugs us is the fact that when you have money problems you cant afford to pay your creditors, yet you have to pay to go bankrupt. This causes problems in the fact that we will have to wait a few months at least to save the cash for the bankrupcy and in this time arrears and interest is still being added to everything, it's madness.

I'll update about the bankrupcy once we know more about whats going on.

(ps. Lloyds are still badgering me even though my IVA was agreed on the 21st Dec. They claim they have not been notified, which is odd seeing as though they can quote my case ref number.)

Kind Regards.

Lee