IVA approved! thanks to everyone who posted

[Sensible77]

No need to apologise, freelili. I appreciate all comments, whether they make me feel better or not. As I've read before, it's an IVA, i.e. individual to each applicant, so who knows? Anyway, the machine has started rolling. My wife and I have just got back from a long walk. We find it clears our minds, we can talk whilst out walking and it’s good for us. We find that we spend a lot of time speculating, what if this, what if that etc. But we won’t know for sure until the creditor’s meeting. I think that it’s human nature to expect the worse!

[MelanieGiles]

HSBC are extremely unlikely to budge from their 40p in the £ ruling, and I am suprised your chosen IP is putting the case forward.

I suggest that you try and speak to HSBC directly, to see if there is any leeway, before you spend a lot of time on a solution that looks like being rejected.

Sorry to be the bearer of bad news, but their policy is fairly rigid. Does the 30p in the £ include provision for an equity release.

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

[freelili]

That is a shame because you seem to have a really healthy attitude to it all sensible. I really hope that you can manage to find a way through. My thoughts are with you and I hope for the best, walking does help, I find that too, the only trouble is my dog ends up agreeing with me, she thinks I am taking to myself!

LILY

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

[Sensible77]

Hi, Melanie.

The 30p in the pound does include the equity release. The 30% has been calculated by taking my payments of £357 over 60 months, £21420, plus 75% of my equity, £15141.05, less administration expenses of £10081.39.
That leaves £26479.66. My total unsecured debt is £85445 which leaves a shortfall of £58965.34. This is 30% of the debt. Am I correct in thinking that means 30p in the pound?

[MelanieGiles]

Those fees are very high! To get a dividend of 40p in the £, I would reduce fees to say £7,500 (inc VAT), and then work on an equity release of 90% loan to value giving £20,000 (I'm guessing the figures there). This would do the trick.

You are correct that 30% is 30p in the £.

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]

Thanks for the information, Melanie. This is very useful.

[MelanieGiles]

Alas - I give away all of my trade secrets!!!

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

[freelili]

Why could you not change then to someone like Melanie to give you a more realistic chance of acceptance. Then your walks might be more positive, I know it means starting again but.....Everyone I spoke to even before melanie began posting here said the 40p thing was crucial to my IVA.

LILY

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

[Sensible77]

Thanks, Melanie. Your help has been invaluable! If the worst was to happen and HSBC refused to allow the IVA does that automatically mean bankruptcy? What could be gained by speaking to HSBC directly? I'm coming from the angle that HSBC are working for themselves whilst Payplan are working for me.

[Andy2]

Just out of interest, how did Payplan get the fees to over £10,000 of your approx. £36,000. I would have thought a big provider like Payplan would have been able to keep some overheads down.....CCCS have announced they intend to offer IVAs for considerably less due to volumes and I always thought Payplan and CCCS were fairly similar organisations.

[MelanieGiles]

I do not think that you will have any problem at all with HSBC providing you hit the 40p in the £ level. My staff and I deal with the decision makers every day, and we know what their requirements are and what they will accept. I know that anything below is very likely to be rejected - so don't even think about bankruptcy, think about giving them what they want.

Andy 2 - CCCS and Payplan are not similar companies. Payplan is a private company who deal with volume IVA processing and have done for a number of years. CCCS are a new entrant to the marketplace, and their IVA product is yet untested.

At the end of the day, in this profession you generally get what you pay for, so do ensure that you are getting value for money, Sensible, and as close to a guarantee of success as you can possibly get, when choosing who you wish to act for you.

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

[Andy2]

I must admit I have viewed CCCS and Payplan as similar organisations in the DMP market (albeit one's a charity and one is a company) and thought that the volumes they handle would enable a slightly lower than average cost of handling IVAs. This is obviously not the case with Payplan and as you say CCCS have yet to get theirs off the ground.

[Adam Davies]

Hi Sensible
Why would payplan propose an IVA with HSBC having the deciding vote when the offer is 30p in the £1 when we all know that 40p seems to be the minimum ???
Have you paid any money to payplan ??
It really would be worthwhile talking to your IP again and raise your concerns before time is wasted on this proposal.
Regards

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

[Sensible77]

Hi, andydavie. It does seem odd, but maybe Payplan know something we don’t? Payplan require no upfront payments, and, if the IVA does not get accepted, they require no payment at all. I’ve had that confirmed in writing. Payplan list HSBC on their website as one of their supporters – does this make a difference? Barclaycard are also listed as a supporter of Payplan, in fact Payplan are mentioned on their credit card statements. I have received a letter from Barclaycard acknowledging that I am pursuing an IVA with Payplan and to send them confirmation of acceptance when I have it.

[freelili]

Well you might as well hang in there and see what happens

Good luck

LILY

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