IVA BORDERLINE

[markss]

I had my telephone assessment today re a iva with DFD they are going to draft the proposal and feel it has a good chance. NR are borderline re majority vote £78000 total debts unsecured nr £22000 disposable income £270 pm gives creditors £16000 return. sounds too low for me any feedback welcome

[aguise]

Hi Mark I'm not too good with the figures and I am only guessing but it does sound low possibly around 20p in the pound return. Have you spoken to any other providers.
I am sure Melanie or ian will be along and give more advice soon.

Ang

[markss]

its about 16p in pound i have no assetts etc br would give them even less return..

[aguise]

Told you I was guessing Mark. Northern rock have a majority vote. I would definately get other opinions.
Have you considered bankrupcy, ? is your I and E a livable sustainable amount for you for 5 years.

Ang

[Reviva UK]

Hi Markss

We don't place many IVA's as most of ours are derived fom peculiar situations to begin with - approx 40 per year.

From my experience the IVA is likely to have a higher than normal risk of failure if the contribution is sub £300 because to get the figures to fit it is all too easy to make agree to unrealistic monthly expenses. there was a rcent post where a lasy had a bolier break in december and couldn't afford to have it fixed - Please take time to understand your real monthlyu expenses - it is better for all concerned.

However it seems to me that if an IVA is the right solution then you stand a better chance with a practice that your case is likely to be managed by the IP rather than a telephone team.

Suggest you call Melanie or Ian as they could give you some impartial advice before DFD go headlong into the proposal.

Debt Management is not likely to be a solution so if Melanie or Ian say "no chance" then from the info provided the Bankruptcy route may work - you would probably pay £130 pm over 3 years but would certainly pay less back to creditors.

[MelanieGiles]

There is no reason why you should not put forward an IVA, but do you really want to suffer ongoing financial hardship for the next five or six years to merely pay back 16% to your creditors? The return is low, and unlikely to be acceptable to creditors - even in these days of post-IVA protocol. I would have thought that given your disposable income compared to your debts that bankruptcy would be a more favourable option which will enable you to make a fresh start at a much earlier stage.

[carlmcmullen]

Other than NR who are the rest of your creditors ?

16p in the £ is very low but i have known cases to be agreed at similar dividends?

Do you have any significant assets that you are tyring to protect against bankruptcy?

[MelanieGiles]

The poster has already said that they have not assets Carl.

[carlmcmullen]

In that case, with no assets and a debt level of that amount and disposable income of £270 i would probally say BR is a good option, has this been discussed with you and the implications that it will have compared to an IVA ?

[markss]

BR too risky ref my job although i am sure i can afford £300 pm on an iva which may seem a better attraction for creditors. with no assetts the iva is best for everyone i think

[emma_t]

Hi markss

It seems so daft when creditors reject iva's when the only other alternative for the individual is bankruptcy, surely it is better for them to get the best return on the debt rather than nothing.

Good luck with your proposal
Emma x

[markss]

thanks Emma i agree entirely with you. although DFD seem confident that i have a strong case. thank you everyone for your feedback