We are in a DMP with Payplan after our IVA application was rejected. We were offering a monthly contribution of £242 on a debt of around £62K. We are wanting an IVA option and I am wondering if in the mchanged financial world that payment would now stand a stronger chance of success if we were to apply again.
There is nothing to stop you applying again. I was told by Payplan that if my IVA had been rejected, then I would have been put onto a DMP for a few months, then they would have tried again.
You can always give them a ring and ask. Why was it rejected?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Thanks for the responses, I believe it was the level of the offer. It was considered a low contribution IVA. However in the light of the current financial state of things is it likely they may view an appliction with the same amount differently.
Events out 'there' in Wall Street, and Threadneedle street have made creditors queazy..if you are up to reoffer a higher dividend and cut down on your I/E it might just happen.But it might just not as the downturn may make creditors tighen up further.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
We have quite a few creditors as you can imagine, but I would say that the main ones are MBNA, Lloyds TSB and now Barclays as they have taken over some of the other credit card companies we hold cards with.
If the divided returnable is in the region of 20p in the £ or more, I would have thought that this would be worthwhile putting forward - but of course it is always more difficult to put an IVA forward if it has already been rejected.
Both MBNA and Lloyds TSB have the same representatives but it is not unknown for their votes to conflict.
Who put forward your first attempt at an IVA? Was it Payplan also? If so, have you taken an opinion from another firm as to whether they think they can get an IVA through for you?
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Many other IP companies, including my own, have lower thresholds, but it all depends on viability. For example, if you are only able to make a small contribution, say less than £200, there is the risk that a relatively small increase in outgoings could render you unable to comply with the IVA. On the other hand, with your current provider unless there is a change in the short term that will genuinely increase your surplus income, or you fudge the figures (not recommended at all) then you are stuck in a 20 year (minimum) DMP it would seem.
My experience of the representatives of Lloyds and MBNA is that they tend to look at the sustainability (or viability) of an IVA rather than the raw dividend. As a result, they are probably more likely to vote to reject your IVA because they perceive it over-stretches you than they are on the amount of the offer alone. To pluck figures out of the air, if they felt you could only afford £220 they would rather see you offer that than an unachievable £242.
I think you should ascertain the specific grounds for rejection to enable you to find a way forward.
Ian
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
It would also be useful to find out what ongoing negotiations the IP actually held with the creditors on the day of the meeting. Rejection votes are often amended through discussion, the provision of additonal information, or just a greater understanding between both sides.
