If you propose IVA, and is rejected

[fbe]

If you propose IVA, and is rejected, can the creditors call on bankruptcy immediately or will they give time to settle debts in other ways?

[iva experts]

Hi Fbe and Welcome to the forum,

If you propose an IVA and the creditors reject this, then unfortunately you will be back to square one.

Do not despair though there is a solution to every debt problem, whether it is a Debt Management Plan or Bankruptcy.

What is your estimated amount of debt? How many creditors do you have? This will help determine whether an IVA is suitable for you.

Best Regards. IVA Experts

[MelanieGiles]

It is unlikely that any of your creditors will petition for bankruptcy immediately, especially if they are the usual banks and credit card companies.

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

[fbe]

I have heard of the full & final settlement IVA, if I can raise a lum sum money from the family, will an IVA be accepted and all debts writtten off.

[MelanieGiles]

Well anything is possible! Can you post how much you actually owe in total, and the amount of money your family would be able to raise.

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

[fbe]

Well anything is possible! Can you post how much you actually owe in total, and the amount of money your family would be able to raise.

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

[fbe]

I can raise about £35k to £40k, and I have unsecured debts of £73000!

[Oliver]

A full and final payment could definately be a possibility for you. You would still need to complete and income and expenditure and asset report to your creditors to show that you neither have the disposable income or the assets to pay your creditors any more money.

Best Regards
Oliver

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

[MelanieGiles]

Hi again

That would appear to work as an IVA, and you will now need to find an insolvency practitioner to represent you, if you choose that as a solution.

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

[fbe]

i have been thinking of doing an IVA, but my partner feels it's not right because the creditors will make me bankrupt, if the IVA fails and the joint property will be sold! Is this true?

I have debts of £79,000, I have no disposable income, but have joint equity of £70,000 on a property owned by my husband, could i make IVA one off payment offer to my creditors with 50% of the equity?

[iva_squirrel]

Good evening fbe,


In order for your IVA to be accepted, 75% of your creditors have to vote in favour of it. In our experience there are certain things that make a creditor more likely to accept an IVA proposal. For instance, you should never propose to repay less than 25% of the total debt.

If the IVA is rejected, well first thing is to remain calm. There is an opportunity to submit an improved IVA proposal if your funds allow.

Failing that it may be time to consider an informal payment plan or perhaps even bankruptcy. This is best discussed with a debt help and advice professional.

Good luck,




Julia Simavi

Shortlisted for Best UK Debt consultant by Credit Show 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

[iva_squirrel]

Hello,

If you owe money, you can ask your creditors to let you pay a lump sum which is less than the full amount of your debt. This is called a Full and Final Settlement. In return for this payment your creditors agree to write off the rest of what you owe.

As a rule, people are in a position to make such an offer because they’ve come in to some money or have some savings they can use. Alternatively, a friend or relative may be able to provide the sum required.

If you can release £35K and make a Full and Final offer- considering that you have no disposable income, it would most probably be a good offer.

Regards,



Julia Simavi

Shortlisted for Best UK Debt consultant by Credit Show 2007

View my profile:
http://www.supersonicsquirrel.net/julia ... rofile.asp

Visit my website:
http://www.supersonicsquirrel.net

[RedDevil]

Hi fbe,

You will need to remortgage to release the equity. Try to persuade your partner to chip in and cover your IP fees. Take a good look at your income and expenditure. Make sure you have no disposable income by balancing the term of your new mortgage against the amount of equity you are releasing. Also, this would be an ideal time to pay off any of your partners outstanding debt. OBTW you should be able to get a mortgage even if you credit rating has been impaired. Best to speak with Welshboy he is an expert in the field of IVA mortgages. there are some very good rates available at the moment ie 6.5% fixed for 3 years. I would recommend Melanie as an IP as she posts on this forum and always gives sound advice. You have to make the choice but make sure it is the right one for you!

Good luck with your IVA

RedDevil [:)]

[fbe]

thank you all for replying! it helps to know that there is a lot of support out there. i am considering the IVA and I just want to know one more thing, I had a valuaton of the property done september 2006 and the value was £240k but the estate agent is now quoting a sale figure of £290k, I feel the price is bizare! but I need to know which figure I should take to calculate my share of equity in the property. Do I need to get a new valuation doen by a mortgage lender? or the creditirs are likely to accept the £240k valaution to do a full and final settlement IVA

[RedDevil]

Just remember one thing these figures can go up or down. A valuation now is more of a real number now rather than one in four years time. Your creditors will like to settle now rather than gamble four or five years into the future. Put it this way there could be a property crash before then so if you have an equity clause in your IVA and you go negative equity does that mean your creditors will pay you back!!! I don't think so. A full an final IVA is probably best for you. Keep away from the intermediaries like Debt Counsellors etc. They all advertise in the national papers and the yellow pages. Mel calls them ambulance chasers. They take you on board and suck what little cash you have knowing very well that your IVA proposal will fail. They make their money by numbers. They will tell you to stop paying your creditors so you can pay them. If you pay a proportional amount to your credtors each month I am sure they will appreciate it. For some of us it is too late because we have received bad advice. I can only speak from my own experience and Mel is now handling my IVA. This my last shot at paying my creditors something.

Regards RedDevil [|)]