if most creditors do not agree what happens then?

[17 months to go]

Myself and my husband are £40,000.00 in debt due to loans and visa cards, we are thinking of going for an IVA and we just wanted to know that if all creditors vote and most do not agree what happens then?

[alan1951]

I'm sure an expert will be along shortly to give you proper advice.

If an agreement cannot be brokered which is affordable to you ( very important for a 5 year obligation! ) and gives a return that the creditors find acceptable, then the obvious alternatives would be a Debt Management Plan or bankrupcy.

If you have no assets such as a house then bankrupcy may be the quick and easy solution to your debts. But of course there is the social stigma associated with bankrupcy and in some professions you could lose your job.

Good luck in whatever you decide to do

Alan

[MelanieGiles]

Hi cw

Alan is right in that you have the two other options - but have faith. 80% of IVAs which are proposed are accepted by creditors, and some insolvency practitioners have success rates in the very high 99%. Why not take some advice to see how feasible your offer may be?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Great advice from above.

You will need to secure a minimum of 75% of the votes to have your IVA binding on all of your creditors. This is 75% of the people who vote on your proposal and the votes are weighted pro rata to the debt owed.

This means that if only one of your creditors vote and they vote yes then this would be 100% of the vote and your IVA would be accepted.

Best Regards
Oliver

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

[simon.b]

Out of interest, does this 75% rule apply to F&F Settlement IVA's as well? Are there any stats as to the voting trends of Virgin (MBNA)? I've heard they don't often agree to IVA's but do they regularly vote?

[MelanieGiles]

Yes - the 75% relates to all IVA's and personally I find MBNA a pretty supportive creditor - but they will review all cases on their own merits, and consider the events leading up to the insolvency to see if their money was used wisely!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[simon.b]

Thanks Melanie and thanks - with MBNA I transferred a balance of £6,500 onto their credit card to take advantage of the years interest free offer. I met the minimum repayment of approximately £9 each month and then the interest began to occur resulting in a min payt of £124 but interest of £119 - clearing only £5 a month.

This scared the life out of me and after 2 months of this I'm here today and have been advised to cancel my DD's - on this basis, how would you expect MBNA to vote, if they would vote at all? I have a funny feeling it wouldn't be in agreement though???

[MelanieGiles]

Well I would not have thought that they will be very pleased - do I assume that you have had this card for 14 months and what percentage of your aggregate debt do MBNA hold?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[simon.b]

Indeed yes, I've held it for 14 months and they hold £6,600 of my total debt which is approximately £31,500 so about 21% - it's reassuring to hear they would be very pleased, I hadn't expected that at all!?

[MelanieGiles]

I said that they may not be pleased!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[simon.b]

Ah, think the word 'not' was missed off the post but no worries, I wasn't expecting them to be too happy but thought I'd check on here.

Any idea's on what figure I should be looking to propose in a F&F Settlement? If you're not allowed to disclose this sort of advice over the forum then I understand...

[MelanieGiles]

As you have disposable income which could be paid over a five year period, I suggest you look to a full and final settlement in line with that. From memory, five years of your disposable income would see the creditors paid in full - of course this takes no account of interest or IP charges.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pippa]

Hi

Sorry but can I get some clarification on the 75% return of a positive vote, I am confused,I was under the impression it 75% yes vote of the value of the debt, Have I misunderstood or is it 75% yes votes of any creditors that actually vote??? regardless of how much they are owed individually.

Hope that makes sense-
Thanks
Pippa

[17 months to go]

Hi it's Colin - thank you very much for your good advice - we have decided to go for IVA - we have actually got equity in our property of £25,000.00 - does this mean that the creditors can take a portion of this, if so when do they actually take it? Whilst the IVA is being set up, what rights have the creditors got i.e. can they send us default notices and take us to court and also can they carry on charging interest on the debt? Do we need to open another bank account whilst the IVA is being processed?

Thank you very much.

Colin

[MelanieGiles]

To Pippa - the votes are calculated on 75% of those who actually vote, not of the total debt.

To Colin - I suggest that you also look at a full and final IVA based upon equity release now, as well as a long-term IVA, as you will also be required to raise equity at the end of the agreement. Whilst an IVA is being set up, your creditors have the usual rights available to them for debt collection, unless your IP seeks an Interim Order at Court to stop legal actions continuing. You would be very wise to set up another bank account, if you have debts with your current bankers.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk