iva failed

[Wizzard]

Can I ask whats a siva? Try payplan as I have found them brilliant

The new SIVA will have many benefits, including that of flexibility and a simpler setting up process.

The Simplified IVA system will likely have two tiers. Tier 1 having an upper limit of £25-30,000 and Tier 2 an upper limit of £75,000.

Also the number of creditors that must agree to the SIVA is lower than a traditional IVA, so more are likely to be approved.

A SIVA Tier 1 agreement will not need a majority vote to proceed while a SIVA Tier 2 will continue to require a vote, but will only need a 51% agreement from the creditors, rather than the current 75%.

[lendusaquid]

To all,
I have just had a conversation with a young lady from a recomended dmp company-this young lady has just told m that all the advice I was given by Synegie was bad advice-I should never have paid fees before Iva-I should not have stopped making payments to the creditors. I have been advised to speak to the Oft. Thanks for all the kind messages will keep you posted.

[kallis3]

Whilst I agree that you shouldn't pay fees upfront, most IVA firms will advise you to either stop paying or just pay token amounts before your IVA. We stopped paying before ours.

[Julie]

I agree with Jan, it is normal to stop paying creditors whilst IVA is in process of being set up. Token payments are sometimes advised but you have to ensure you pay all the creditors a fair dividend.

lendusaqid - try getting advice from some other companies, I would hate for to pay any more money out.

[lendusaquid]

speaking to payplan, got to complete an 18 page questionaire-will speak to the office of fair trading tomorrow.

[debtmountain]

So sorry to hear your News lendusaquid, maybe you could do a DMP short term and then re-apply for an IVA like the others have suggested in a few months? Whatever you decide though, please keep in touch and let us all know how you get on.

xx

[ianmillington]

NR do accept IVAs although this is generally on terms that comprise a hard bargain. Often, for example, they issued loans for (say) 10 years. If you have 8 years remaining as an example, then a 5 year IVA proposal is a complete waste of time. They will want at least 6 years, if not 7.

I have a number of issues with what you are being told. I note that the young lady working in a DMP company, who presumably has no insolvency qualifications at all, is indicating that everything you have been told by Synergie (whom I do not know and therefore have no axe to grind) is wrong. I assume she has seen the proposal and has pointed out its defects to you. If not, how can she tell you what is wrong with what has been done? Has she ever worked on an IVA, or is she just a DMP salesperson? What guarantees have you been given that NR will accept the DMP?

For my part, I can tell you that the position of a licensed IP is a very onerous one. Whilst the IP may merely be an employee of the company he works for, he or she assumes personal legal responsibility for your proposal and any complaint you make should be against him or her personally to the licensing body. Unless there is a realistic prospect of acceptance, best practice requirements suggest the proposal should not see the light of day. Speak to the IP named in the proposal and get a full explanation as to the reasons things went pear-shaped, before drawing any conclusions.

I assume there was a reason you originally chose an IVA over a DMP. That reason may well still be valid. Speak to an IP (make sure you speak to the organ grinder) about your situation. Be prepared to provide a copy of proposal number 1 as a properly constructed second proposal is not entirely out of the question, but make sure it's on terms that any monies paid will be refunded if the VA is rejected i.e the IP puts his or her money where the mouth is.

Hope this helps

Ian

[size5]

Excellent advice as usaul Ian, not heard from you for a while though, thought you'd emigrated??

Regards.

[Flush]

Is BR not an option for you ?

NR Really hack me off. Look at the b***** state they have got themselves into. Perhaps the Government should have said no when they went cap in hand to save them, see how they feel when they get a taste of their own medicine.

[ianmillington]

Hi Mike.

Paphos, and then dealing with the backlog of stuff that probably awaits every sole IP upon return from holiday! Glad you've missed me!

My belief is that we have insufficient information from which to draw any conclusions at all. We don't know what lendusaquid does for a living, whether he/she is a homeowner etc, etc, etc. All we know is that he/she attempted an IVA and NR (who are owed 40% of the debt) voted to reject. We don't have chapter and verse on why NR rejected it. I would be very surprised if it was simply misuse of a majority vote.

The poster needs to know precisely how and why the first IVA proposal was rejected before deciding what to do next. The knee-jerk reaction of simply launching oneself into a DMP (which may itself not work) is not the appropriate first step.

The SIVA point is very well made by the way. The Insolvency profession eagerly awaits its introduction.

[size5]

Nice to have you back Ian.

We seem to have been waiting for an age for SIVA's though don't you think?

Regards.

[ianmillington]

Yes. My belief is that that is what the protocol is all about - setting a bunch of ground rules that will ultimately produce a proposal standard that the banks will be happy to see applied as SIVAs. Latest projections are IIRC that they are looking to introduce them mid 2009 but I won't hold my breath!

[size5]

Indeed!!

[plasticdaft]

Its clearly not something the banks would be in a hurry to bring in,given that it surely will have a higher acceptance rate than an IVA,due to requiring a lower % vote.

Advice for anyone with NR as a creditor has to be to ask their IP how much success they have in dealing with NR,is this something IP's have to be honest about if asked???

[ianmillington]

Unfortunately it's not quite that simple. For any IP to openly quote an acceptance rate by any particular creditor is asking for trouble. In my experience whether NR vote for or against depends upon a number of factors. Probably the 3 main ones are the debtors conduct of the NR account, how long the debt has to run, and whether the proposal takes these factors into account. As a result, it is important to discuss the overall creditor position with the IP from the start and to make sure that there is an agreed gameplan to address the reasonable concerns that any of the creditors will potentially have.