IVA Increased to 45p in the pound

[MelanieGiles]

DebtDummy

I have it from the horse's mouth that HSBC's voting policy is a minimum of 40p in the £ as I thought, so your IP needs to look again!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Melanie
These minimum amounts that seem to be coming from creditors is worrying.When I applied for my IVA 3 years ago all 11 creditors voted in favour except Amex[at the time I was told that they always reject] and I was proposing 29p.Now it seems that some major banks will not even consider an IVA if it is less than 40p and there also seems a reluctance to vote at all by many banks.All this makes me wonder if more unrealistic IVAs[expenditure screwed down to un-realistic levels in order to inflate the disposible income] will be proposed only to fail after several months because the debtor cannot afford the monthly amount.
Why do you think that they have started to act like this ??

By the way I would have loved to have attended the debate tomorrow,I am only an hour from London,but have too much work on after being off for two weeks.
Regards

[jamesfalla]

Hi Neverending

I totally agree with you, this is a crazy stance for creditors to take. I believe that some creditors think that if they tighten up their IVA criteria then they will force people away from IVAs and into do Debt Management Plans instead. However actually what is going to happen is that they are going to force more people into bankruptcy.

Why, well firstly, as you say, some poeple will get themselves into IVAs which they can not afford to pay. This will lead to more failures down the line and possible bankruptcy as a result.

Alternatively, people will be forced away fom doing an IVA which could have given a good return to creditors. Given good advice, they will not choose a never ending Debt management plan but go down the bankruptcy route. Again, leaving creditors with next to nothing.

I think the creditor's current attitude means that they are cutting off their nose dispite their face. Unfortunately in my experiance it is going to take a number of bankruptcies to change this

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

Visit my blog at: http://jamesfalla.blogs.iva.co.uk