IVA ACCEPTED BUT!!!!!!!!!!

[steve532]

I had my creditors meeting today, has a day ever lasted so long. My IVA was accepted but with big amendments. i was offering 46p in the £.To 10 creditors. Now heres the bad news KPMG that vote for barclaycard, cahoot and Alliance & L wanted 56p in the £ as did halifax!!!!!!!!!! so much for 45P being the level to reach. egg + co-op voted yes!!! MBNA NO!!!!!!!!!!! for me it means an extra £115 a month, what do the experts think about thir result???
ps only tesco didnt vote.

steve

[MelanieGiles]

Hi steve

Your contributions were obviously increased because creditors thought that some of your expenditure was unreasonable. You must carefully consider whether this increased payment is affordable, and give that you are in th Army whether you can pay it if you are posted overseas or back to the UK.

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

[steve532]

Melanie.
Your on the ball today but RAF please not that other word!!. I am moving back to uk next month, and thats why i started the IVA because i would not servive without the LOA. I am single so I know it will be easier than if i was married to cope with the extra a month. I sold my car to release equity into proposal my ip left me 4500 to get a second hand car, so i have discussed either getting a cheaper car and putting extra lump sum or saving some for emergencies, what do you think is the best option. I have till 4pm to let her know which option im taking.

steve

[MelanieGiles]

I won't mention any crustaceans with six legs then!

You actually have 14 days to make your mind up on this - the IP can adjourn for that length of time, and as you are thinking about swapping cars etc I suggest you take that time to get yourself sorted. The lump sum idea seems a good one.

Good luck and let us know how you get on.

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

[neverending]

I wonder if creditors now think that most expenditure figures proposed have been inflated and this is why they are demanding higher payments ?It must make IPs want to do this because of cases like Steves but it cannot be the right thing to do .Surely an IPs assesment of their clients ability to pay should be good enough for creditors and if you have been totally honest regarding expenses with no room to move then you are in real danger of rejection.

[MelanieGiles]

Neverending

The only way to present a clients income and expenditure account is the honest and accurate way - ie detailing exactly what the expenditure is and not what we think it should be (obviously within reason!).

The problem I find when dealing with clients who have moved from other practitioners, is that the IP's have told them what to put down. This is a dangerous practice - for the debtor and the IP, as it is setting a case up for failure even before it starts - we commonly see evidence of this on a daily basis on this forum.

When you have built your reputation upon honest and accurate proposal presentation, you tend to get most of your IVA's accepted with little bother!!!


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

[neverending]

I think thats the point that I was trying to get to.
Creditors must have an idea of the IPs that regularly over inflate living expenses and so bounce the dividend yield backwards and forwards.
I think it comes back to a post we had several weeks ago in that genuine and accurate proposals by reputable and well regarded IPs will continue to be accepted whereas inaccurate and poorly researched proposals by other not so highly regarded IPs will be rejected or varied.
Would be interesting to see a table of IPs v proposals submitted v acceptance.
Regards

[steve532]

Dont get me wrong it will be tight, but as melanie knows im military so BR was not an option, so its be tight for 59 payments now as my 1st was today. Or DMP for 15 years. Like I said before i guess being single its easier although i have comittments to my 2 children who i see every other weekend. The one thing that I did think interesting is there is a lot of talk on this site of creditors not voting. I had 10 creditors and 9 voted only tesco didnt. Or maybe its just voting season.

steve

[thebear29uk]

Hi Steve

Congratulations (I think)on getting your IVA approved. I guess the big question for you now is whether an extra £115 a month will be sustainable for the next 5 years. I suppose if you do downgrade the car and offer a lump sum this might not be quite so bad but remember older cars have more things go wrong on them and repairs could be expensive.

Neverending I agree with you that it would be good to see some kind of performance indicators for IPs. Something along the lines of % of 1st proposals accepted, % accepted with modifications and % rejected. Also it would be useful to see the % of completed IVAs per IP owing to the number of posts on here where IVAs were accepted but not viable from the outset and destined to fail.

Good IPs will put forward realistic expenditure costs for both the client and the creditors. Its all well and good having your IVA accepted but if 6 months down the line you are sinking further towards BR then maybe thats what should have been advised in the first place.

Maybe Melanie can shed some light on whether this information is available. I'm guessing not but you never know.

Dave

[MelanieGiles]

I am afraid that these statistics simply do not exist - or if they do the DTI are not publishing them! I think that some creditors probably do keep some form of records, but this information is rarely shared - perhaps it ought to be.

Over the last 3 years, I have only suffered five IVA rejections - a percentage rate of less than 1 percent. The majority of accepted IVAs do have modifications, but this is largely because the creditors do not read the proposals properly - as most of the "modifications" are clearly already provided for within the documents!

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

[neverending]

Wow
Over 500 IVAs in three years,your a busy girl !!
Got me thinking about the size of the IVA market out there.
The nature of this forum is that we rarely hear of the good stories and when you see problem after problem each day you can start to think that it is ALL bad out there.
Obviously its not but would be interesting to see other IPs figures

Hey.........lets start with Synergi ??

[thebear29uk]

Hi Neverending

I think that may be a very short list!!!

Sure am glad I've got Melanie and not Synergi as my IP.

Dave

[ivamole]

To provide some context on failure rates, Accuma claim to average 92% approvals of IVAs - although, according to a press release issued at the beginning of this month - this dropped to 78% towards the end of 2006 and rising to 85% since December.

Even on Accuma's best figures this means that 1 in 10 IVA Proposals are failing and, if this is standard for the major IVA providers, it surely can't all be blamed on creditor pressure.

I can't think of any other profession where a 10% failure rate would be acceptable. Failures in the range 10% to 22% must surely indicate a serious systemic problem somewhere.

I hope the debtors who make up the 10%+ had all of their money refunded so that they could make other arrangements.

[MelanieGiles]

A better statistic to work from is the percentage of IVA's which actually run their course and generate the dividend originally pledged to creditors within the expected timescale.

IVAmole will no doubt have some figures to quote from his (assume you are a Mister!) extensive database.

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