iva proposal rejected

[james.c]

i get the impression, that when an iva is rejected, most people go for a DMP instead of bankcruptcy, why is that

[MelanieGiles]

I think the reason is twofold James:-

Firstly, most people I come across genuinely wish to repay their creditors - but cannot afford to and thus see the IVA, or DMP as the next best thing.

Secondly, whichever way you look at it in the majority of people's eyes, bankruptcy is still a "bad" thing and they are often afraid of the Court. We on the forum know that this is not so, but that is because we are well informed and know a little about the process. Unforunately the average person in the street does not.

[size5]

I heartily concur that the desire "to do the right thing" by the creditors and try and pay them back at a sensible rate via a DMP is a very powerful emotion for those that have unfortunately had IVA's rejected.

BR would be, in purely financial terms, the better option for many of these cases but it has to be borne in mind, as Melanie indicates above, that BR would be better, again in purely financial terms, for many of those that have decided to embark on the IVA route.

Ultimately, it is the decision of the individual(s) involved as to which way they wish to proceed once they are in possession of the full "pros and cons" of each route open to them.

Regards.

[kallis3]

The only reason we chose an IVA instead of carrying on with our DMP was that we would be repaying our debts over at least 20 years, and as neither of us are spring chickens any more, and we probably couldn't have sustained the payments once retired.

I had every intention of paying all of my debts, age has dictated that I can't, but at least I can pay some of them back. Bankruptcy has never been an option for me.

[whatevertodo]

We plan to start the DMP plan in February, although the lady from cccs needs to speak to her manager, something to do with the DMP being over more than 10 years!! Bankruptcy is still an option though, I guess it depends on if the creditors stop charges and interest etc. I don't have too many reservations about bankruptcy, I just worry about our home.

[kallis3]

I don't see why that should make a difference. Our DMP was over 19 years and we had no problem.

Hopefully your creditors will agree to freeze interest and charges. If they do, they usually review this every six months. We just used to tell ours that nothing had changed and they just carried on.

[David Mond]

I am going to review all of this through the ClearDebt special matrix to see whether NR are being Protocol compliant. I might need some further information in respect of your NR and Blackhorse loans as to when they were taken out and how many payments have been made. Back soon.

[liberta]

Hi

Speak to CCCSVA and another IP or expert about Bankruptcy.

As the others say it is not your only option. Howver I would seriously consider it as
you say that Northern Rock are going for a charging order. This will mean that they will become a secured creditor, increasing your negative equity and putting your home at further risk.

Obviously whoever you talk to will be able to give you full advice once they have all of your details about the effect bankruptcy will have on you.

In any event, I would attend the court hearing and contest the application on the basis that you are insolvent and granting the order will cause an unfair predjudice to your other unsecured creditors.

[David Mond]

I need the following information:

Was it 2 IVAs put forward or one?

If 2, what contributions were proposed for each?

Monthly PR for each debt not annual PR

Balance for each creditor which was supplied with vote

I will then be able to review.

Thank you.