IVA Questions..

[Mooey]

After having my IVA turned down yesterday, could anyone answer the following:

1) Can you appeal an IVA?

2) Can I reapply for an IVA? If so when?

3) Can I do an IVA with the 4 creditors that agreed and then a DMP with MBNA?

I will have no alternative but to go bankrupt which could potentially mean me losing my job as I work for a financial institution - if MBNA were made aware of this and that they would get FAR less than the 40p in the £ proposed - could they change their mind or is it simply case closed?

Thanks

[cat 1]

My IVA was initially turned down by MBNA and N Rock.The company had 14 days to reproduce a further proposel.It was accepted but the payments are over 6 years not the usual 5.I'm sure they said they can propose as many IVA's as wanted but I'm not positive so hopefully someone in the know will post later.Cat

[pbeck]

You can't appeal an IVA, but the IP can adjourn the meeting for up to 2 weeks to find out why creditors voted against the deal and come up with a compromise (similar to what cat_1 said). If that doesn't work, then yes, you can apply for another IVA straight away, but if the first deal was rejected, why would the creditors accept it a second time if your circumstances havent changed ?

If you attempt to do another IVA and leave MBNA out of it, then when they find out about it they could go to Court and have the whole thing overturned on the basis of prejudice against them. No IP will thank you for doing that.

I belive that MBNA's rejection criteria are where a debtor could pay their debts off under a DMP in under 10 years with interest stopped and no charges (CCCS don't charge clients for DMPs, creditors pay them), so as you were offering 40p in the pound, what that must have meant is that the IVA fees would have taken over 10% of the contributions (perfectly OK), but you would have fallen into MBNA;s "Under 10 years" rule.

[Viki.W]

Mooey, really sorry about your IVA, what a nightmare. Is a DMP for all of your debt out of the question?

[kallis3]

Sorry to hear that you have been rejected Mooey. As Viki says, is a DMP not an an option for all your debt?

[Viki.W]

Just read your other thread Mooey, I've posted a link to the BR site on it. Hope you find a solution. X

[Mooey]

Thank you for your posts. My IP calulated that my debt as it stands being paid back at £200 a month would take me around 11 years.

A DMP plan could be possible but with the IVA amount of £200 a month things were tight and that was only for 5 years. I can't imagine living through that for 11 years. I will be 40 by then.

I spoke to my IP again and they have advised that I don't apply for another IVA for the reasons that you said Pbeck... They are very annoyed at MBNA themselves as they only justification they are giving is because they feel a DMP would be more appropriate (which we all know why). My IP has said that they still feel that and IVA is best for me and bankruptcy is an option but seems silly for my level of debt - they say an IVA is what I need!!!

I think I will arrange a DMP short term, review the situation in a couple of months whilst I mull things over but realistically I think my only option is Bankruptcy... Which is a shame as all the creditors that voted in favour and were supportive are going to miss out because of MBNA. I will just make sure that I pay those companies as much as I can while I take part in a DMP.

Thanks for your advice. Its so nice to know im not alone - felt like a complete failure and couldn't see a way out - the IVA was light at the end of the tunnel and then the bombshell yesterday did make me feel sick to the bone but knowing there are others going through the same and doing ok is good!

[kallis3]

Mooey, you won't be able to favour any of your creditors over others in a DMP, they are all paid pro rata, even MBNA.

[MelanieGiles]

MBNA seem to be the most difficult creditor for insolvency practitioners to deal with at the moment, and many members of my profession are turning away perfectly good IVA proposals if they have an influencing vote.

I do not blame them for having their own policy - they lent the money and they have the right to decide how best to recover it from their customer base - and even with the newly introduced IVA protocol, this does not prevent creditors from having their own criteria.

As an IP who has been in the profession for over 20 years, I have never known a more inconsistent voting platform or seen creditors with such differing criteria. If the protocol was brought in to assist with consistency, we appear to be a million miles away from that at the moment - and there is no wonder a number of IPs have taken the decision not to deal with consumer IVAs any more.