iva declined please help

[madbobix]

my iva application has been declined and i've been offered debt management or bankruptcy i don't know what debt management is, is anyone else in one and is it a viable alternative? thanks in advance for your advice

[MelanieGiles]

First of all can you tell me why your IVA was declined? If we can undertand why, then perhaps we can advise a little better on the alternatives.

[madbobix]

i have 5 creditors 4 of which approved the iva but the one with the most owed declined it i thought if the majority approved then rest had to agree to it

[MelanieGiles]

Do you know why they declined? Is your IP trying to get them to change their minds? Was the creditor MBNA?

[Viki.W]

I'm so sorry to hear this. Did your IP give you a reason for the rejection?

[madbobix]

yes melanie the creditor was mbna

[MelanieGiles]

Could you post me details of your overall debts and also the amount that you were offering to pay on a monthly basis. MBNA told me recently that if they believe that a customer could pay their debts off in 10 years, assuming interest and charges ceased, then they will reject the IVA. We are already starting to see signs of this policy in our own proposals, and it will get to the stage as with Northern Rock where IPs will refuse to present them in the first place.

I wonder if your IP was aware of MBNA's current position?

[madbobix]

do you have an email address i can send you the info?

[plasticdaft]

Could you post me details of your overall debts and also the amount that you were offering to pay on a monthly basis. MBNA told me recently that if they believe that a customer could pay their debts off in 10 years, assuming interest and charges ceased, then they will reject the IVA. We are already starting to see signs of this policy in our own proposals, and it will get to the stage as with Northern Rock where IPs will refuse to present them in the first place.

I wonder if your IP was aware of MBNA's current position?

No one is going to cease interest for 10 years,thats seriously not fair!!!

[facingittogether]

hi

just wanted to say so sorry your proposal was rejected!

hope you get something sorted. melanie is brilliant she will do everything she can to advise and help you!

thinking of you

love barb x

[indebtforever]

i think they must be getting detailed knowledge from each case as to weather they are most likely to go BR or stick with a DMP because they must be losing a fortune from people opting to go BR and as it states in the iva report to them the dividends they would receive are much greater so were is the logic in it?????

[madbobix]

thats it i can't make any sense of it if i go bankrupt they will end up with nothing.it doesn't make sense

[indebtforever]

have you been advised abour BR? do you have any assets or would it have implications on your job?

[madbobix]

waiting for them to ring me about br i have a house and car that's about it

[MelanieGiles]

If more people went bankrupt after their IVAs were rejected, then perhaps creditors would take some notice - the fact is statistics say that approximately 90% enter into DMP agreements instead.