IVA approved! thanks to everyone who posted

[saz]

Hi, I went to payplan and i cant say a bad word against them, they were most helpful and made me feel really comfy talking about my problems, The R3 call was only about 10 mins long and they arranged a time that suited me and rang me on my mobile and i sat outside work and the call was in my lunch break so, They never rang me at home, they always rang my mobile and left messages, sent text messages when they wanted me to ring them and sent me updating emails

On the road to recovery IVA accepted
60months to go

[Sensible77]

Checked through the proposal, everything looks fine to me. Had a few queries which PayPlan answered to my satisfaction in a way I could understand.
The have proposed 60 payments of £357 which is 31p in the pound as opposed to 8p in bankruptcy. They told me that the first year’s payments go to Payplan then the creditors for the other 4 years. Is that standard practice? I would have thought that it would be split between PayPlan and my creditors for all the 5 years. Also, they have proposed 75% of my half of the equity in our house to be realised in the fourth year, which I understand. Would the equity payment be at the beginning or end of the fourth year? I’ve only thought of these questions now!

[MelanieGiles]

What Payplan mean is that the fee for them acting as Nominee will be drawn down before any repayments are made to creditors. This is normal practice and perfectly acceptable to the majority of creditors.

Check the proposal for the timing of the equity release - it ought to be there in black and white so that you and you creditors know when the money may be expected.

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

[Sensible77]

Hi, Melanie. Thanks for the response. My proposal says "Estimated Asset Realisation Date March 2012". Is that it as I can't find any other reference to it?

[MelanieGiles]

Seems an odd way to describe the equity release, but from those timings it seems that you raise the money at the end of the fifth year. Check with your IP to be sure.

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

[Adam Davies]

Melanie
Just a quesion regarding equity release.
If the equity is required in year four and a remortgage takes place what affect does the increased mortgage payments have on the remainig IVA payments that are left[from remortgage date to the end of year 5 ???]

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Hi Andy

That really depends upon the wording of the debtor's proposal (or more usually the creditors modifications!)

These days, I regularly see provision for the debtor's repayments to be automatically adjusted for the remainder of the term in line with increased mortgage payments. Earlier proposals do not necessarily give guidance, which probably leaves the IP with no choice but to vary the IVA to take account of reduced payments.

That's why I do not like 4th year revaluations and equity releases. Either do it right at the beginning or at the end for clarity.

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

[Sensible77]

This is interesting. I will call Payplan in the morning for clarification. The figure quoted in my proposal is based on the equity now. The equity will most likely be different by the time the release is due. Will the figure stay the same as it is now or be adjusted to reflect the equity at that time?

[MelanieGiles]

I am sure that your creditors will be asking for a revaluation during the fourth or fifth year of your proposals. So you gamble upon the future of the property market which may rise or fall.

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

[saz]

Just to let you know that creditors wont receive any money until after payplan have received all thier fees, I asked the same question but the 5 years starts from the very first payment!

On the road to recovery IVA accepted
60months to go

[Sensible77]

I've got my R3 call at 9:15 tomorrow morning. It's been brought forward a week which I'm glad about. I'll be asking anything I'm not sure about, timing of equity release etc. If I'm OK with everything I'll sign the R3 form and return it to Payplan. I'll ask Payplan how long it takes until creditor's meeting, but can anyone give me an idea from their own experience? I just want this sorted so that my wife and I can get on with our lives.

[Sensible77]

Had the R3 call today. Payplan went through my options, DMP, bankruptcy or IVA. As a DMP is informal and would take approximately 19 years and bankruptcy is a last resort, I have decided to go ahead with an IVA. I have signed and returned the R3 form. Payplan said that I should have a date for the creditor's meeting in about 4 to 5 weeks. My main concern is HSBC. My proposal is 30p in the pound and I've been told that HSBC don't usually accept less than 40p. Also, my debt to HSBC is 26% of my total debt, so they could scupper me straight away. However, as Payplan are aware of this, I'm sure that they wouldn't put forward my proposal if they didn't think it would be successful. I suppose the phone calls from my creditors will start soon. I'm not looking forward to them, but that's life.

[freelili]

Hmmm I dont think HSBC do accept for under 40p in the pound, I was told this by several companies I rang and by Melanie on this forum. Although they are my main creditor. I would have some concerns about this. I dont know if they would reject if compared to bankruptcy though??? And if it would take 19 years to pay off, it might work.

Try just checking out another company's opinion on this??

Dont worry about the phone calls just be honest and firm but polite... We have all had these and I didnt like them at all at first but can deal with them now.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.

[Sensible77]

Thanks, freelili. It does concern me, but if I was to go bankrupt the only assets I have are our house and a vehicle worth about £2000. My share of the equity is £20000 so they would get a lot less than in an IVA, about 8p in the pound.

[freelili]

I am sorry sensible, perhaps I shouldnt have said anything, its just what I was told by a number of IP's I phoned. The people dealing with your case know a million times more than I do and I am sure they know what they are doing. I was going to do an IVA with payplan myself but I also wanted to check things out with other companies also. I ended up waiting for a while as I am so confused by contradictory information. I really hope everything goes really well for you.

LILY

I believe that angels breathe and love will live on and never leave. I cherish all you gave me everyday.