I have applied for an IVA, in the creditors meeting it was refused by Lloyds/TSB due to them thinking I couldn't afford it. I have been told that my IVA people will try and negotiate with them, what is the likelyhood of a successful outcome ???
Hi ARW.
If the IVA is not affordable it will fail and that is in no one's interest. Lloyds TSB do not support IVAs that they believe are too tight or are reliant on means tested state benefits as they feel bankruptcy more appropriate. This may seem strange given that this will untimately cost them money and other banks do not have the same attitude.
If your IP can show that the IVA is affordable and that you are adamant that you do not wish to go bankrupt it can be reversed. At least then in the future no one can accuse Lloyds TSB of exploiting debtors and making their situation worse.
I completely support the views of Lloyds TSB's voting representatives in not accepting arrangements where they feel the contributions are unaffordable.
This has clearly happened because your IP has not used the CCCS guidelines, or that you simply do not spend as much as would be allowable under those guidelines. We often have clients in a similar position to yourself, and a disclosure note somewhere within the proposal could have helped to justify the levels of your expenditure - assuming that you feel the payments are affordable.
I assume that your IP has adjourned the proceedings for 14 days in order to liaise further with Lloyds' representatives on your behalf.
That sounds like very sensible practice by Lloyds as any iva that is not affordable is doomed to faliure anyway. Maybe some other creditprs should take note rather than trying to squeeze the maximum available through modifications and making things really tight for people?
Arw - I would seriously have a look at the proposal and if you can clearly afford it then its up to your IP to fight your corner.
Have a chat with them and see what they can suggest as they will have all your income and expenditure details in front of them.
Let us know how you get on
Good luck
Be positive & look after yourself, there are more important things in life than debts....
