IVA refused, don't know what to do.

[torandg]

Just heard my IVA has been refused because Everyday Loans have turned it down and they are owed 28%. Any advice welcome, I'm panicking.

[size5]

I posted this on the 26th Jan, and am not surprised at your outcome.

"Unfortunately, they are not great supporters of IVA's.

Statistically, it is very likely they will vote against, however they do sometimes accept. If they are getting a good amount back that will help, if the loan has been going a while and you have had a change in circumstances then that will help also.

If, however, the loan is relatively recent and there is little change in your circumstances, then you may be fighting a losing battle.

This is only anecdotal evidence, but there you have it.

Regards."

The question is, what now?

It would help if you can shed some light on the following:

How much is your total debt?
How much was your IVA payment proposed at?
Do you have any assets, property, car?

Answers to those may help.

[Debt_guru]

For an IVA to go through you need a 75% of the total debt to accept the case. Most people do not realize if you have overdrafts on an account or even a store card you could include into the IVA your payday loan could drop below 25%, have a look around to see if you have an Argos or little woods card(most popular) lying around it could help.

[Foggy]

Hopefully your IP can explore the other options available to you. Even a DMP while you try to shift the "balance of power" is worth considering, it will buy some time if the creditors will agree.

[torandg]

Total debt £55k and offering £475 a month, no assets. Waiting to hear back if DMP might buy me some time to shift the balance of power as suggested by Foggy, thank you.

[Foggy]

Out of interest -- have you discounted bankruptcy as an option ? If so, why ?

[size5]

Ok.

Back of a fag packet calculations here, but if this is a single case then a rough dividend seems to be 40 odd pence in the £. If it is a joint or interlocking case then the dividend will be less, but conversely if the Everyday is a joint debt then their dividend is of course higher as they are getting paid from both cases. This is a very fair offer and it is no fault of yours that Everyday have acted in what seems like an unreasonable and potentially bullying fashion.

You could consider the following:

1. Increase your offer of monthly payment to increase the dividend, they may accept if it goes over 50p (not a fan of this, you may struggle by paying more)
2. Ask your I.P. to consider reducing fees to increase the dividend (they should have thought of this already and may have already done spoke to Everyday to offer that)
3. Go Bankrupt

Personally, I wouldn't recommend a DMP in any form for a number of reasons. A DMP splits payments pro rata, so the % you owe Everyday will always be the same. If you circumvent that and pay them more than the others then you are not being fair on the others, and they may then vote against you in any further proposal, so even getting Everyday under 25% does not guarantee success, and of course you have to factor in how long it would take, and how much it would cost to get it to that point.

You can pay for 2 BR's in 3 months at your IVA payment level. You then get income payments for 36 months, so 39 months in total rather than 60 on an IVA, and certainly less than, say, 6 months on DMP followed by a further 60 on an IVA after that.

This has the added advantage of returning Everday, after OR costs in BR, far less than they would have received through your IVA.

Serves them right I reckon.

Regards.

[torandg]

Thanks for the advice, I've been dealing with McCambridge Duffy who seem to be pointing me in the direction of DMP with their sister company. They wouldn't deal with bankruptcy for me. I will look into this more as I don't know enough about bankruptcy option.

[Lisa Thomas]

For an IVA to go through you need a 75% of the total debt to accept the case. p.

Hi DG - that is not correct - it's 75% in value of creditors VOTING that have to vote in favour...

[Lisa Thomas]

Information on BKY here:

https://www.youtube.com/watch?v=mAkQsVSCnqo

Plus there are some other videos on my channel you might find useful.

[Debt_guru]

For an IVA to go through you need a 75% of the total debt to accept the case. p.

Hi DG - that is not correct - it's 75% in value of creditors VOTING that have to vote in favour...

Obviously, the non-voters do not vote ...

[kallis3]

Lisa is merely saying it as it is.

[kallis3]

Also, the others may vote no.

[Lisa Thomas]

For an IVA to go through you need a 75% of the total debt to accept the case. p.

Hi DG - that is not correct - it's 75% in value of creditors VOTING that have to vote in favour...

Obviously, the non-voters do not vote ...

You have stated that '75% of the total debt' is needed for an IVA to go through - that is incorrect and is misleading.