IVA Rejected

[claire]

I am new to the board but hope you can offer me some advice.

I had an IVA rejected two days ago through Freeman Jones, My IP has advised me that she will be reproposing my IVA on the 22nd March 2007. During the 1st meeting both MBNA who i owe £3500 and Northern Rock who is owe £7000 rejected my proposal, Northern Rock gave the decision that the debt would be paid within 10 years if i carried on the repayment!!! I carnt do this thats why i proposed the IVA!!! But LLoyds TSB (i owe £11000) and Lombard £175000) both agreed outright.

My IP has said that before the new meeting she is going to try to get MBNA to sell my debt and she mentioned a company called Max Recovery, is this normal procedure? and does anyone know whether this will work?

If this second proposal fails what other steps are available to me? I am studying law part time so declaring myself bankrupt is out of the question otherwise I would not be eligible to obtain a qualifying law degree!!!

Any advise would be very welcome

Claire

[c_h]

Hi,
Im really sorry to hear about your unfortunate situation, there is nothing worse than worrying over money.
I am in an IVA and MBNA were one of my creditors too and they are the most fierce and worst to deal with. Although they did not sell my debt before the IVA, they eventually -after numerous adjourned meetings -agreed. However, they did sell the debt to Max Recovery as soon as the IVA started, so i would say that you stand a pretty good chance of them selling it beforehand. I hope this puts your mind at rest a little...

All i can say about your other options if it is rejected again, is that you could go to a debt management program. However this is really long and drawn out and can go on for years and years and no debt is written off, you just pay smaller amounts over longer years so IVA is your best bet. If you dont mind me asking..who is your IVA being organised by?

[claire]

My IVA is being dealt with my Freeman Jones who are a subsiduary of Gregory Pennington

[go_4_broke]

Hi Roger,

Do you really mean £175,000. . . or should that be £17,500 ?

Best

New to the forums - but not to debt !

[claire]

yeah sorry i meant £17500 to many zeros

Claire

[aguise]

Hi Roger

My husband and I have an iva with Freeman Jones, and I have to say they were great. We also both had mbna accounts. My husbands mbna ac was passed over to max rec before the meeting and mine with them was not. Max recovery voted yes to his but mbna voted no to mine even though mine was for much less. They have now sold the debt on to eversheds . So I am sure there is hope. I think Freeman Jones will do their best for you, they did not let us down at any point.
All the very best.

Ang

[claire]

Hi Ang

Thanks for your reply and I agree with you Freeman Jones have been excellent all the way through and the staff ive dealt with are all so easy to talk to and friendly. A friend of mine referred them to me and she had debt with mbna but they agreed in her case as she only owed them around £1500 so maybe it goes on the amount you owe them as to whether they agree or not!! who knows ive just got my fingers crossed that it goes through ok in 2 weeks time.

Thanks again for your advise

Claire

[go_4_broke]

Claire

Yes that makes a lot more sense because if it really was £175,000 your proposal should have gone through like a dose of salts !

You say you can't afford to go bankrupt because of the adverse effect on your career. However you could try this:

My suggestion would be to use a two-stage approach. As ch above says if you go into a DMP you will be there forever. However you CAN use a DMP as a holding pattern to wear down your creditors. It is likely that some of them at least (and MBNA in particular) will get bored with you and sell off the debt within a year or two, maybe less. Make sure you don't pay any fees up front and you can get out of the DMP at any time without penalties. You can even do it yourself (it's not exactly rocket science). Just pay the smallest amount you can realistically get away with whilst keeping your creditors at bay.

Then retry for an IVA at periodic intervals until you get one. Possibly try different IVA companies but always go for a No-win No-fee deal.

You might get problems if one of your creditors decides not to play with the DMP, but you can cross that bridge when you come to it.

- Best

New to the forums - but not to debt !

[zoe]

Hi Claire
Are you not going for a further proposal?

Who are your creditors?
Zoe
x

[claire]

Hi ya Zoe, yeah my IP is reproposing my IVA and the second meeting is on the 22nd March. My creditors are Lloyds TSB, Lombard Direct, Northern Rock and MBNA. The first two agreed to the IVA the second to rejected it.

[zoe]

Hopefully your IP will get them to change their mind!!! Have you increased your offer?
Z
XX

[claire]

No the offer has stayed the same ive proposed to pay back 40p in the £ my IP is hoping that MBNA will sell my debt to max recovery before the next meeting!!!

[MelanieGiles]

It may not be as simple as this. If they go to Max Recovery then they are generally very supportive of IVAs, if they got to Link Asset Management then they demand 70p in the £. I managed to negotiate a more realistic return of 50p today on one of my own clients, whose brother was putting up a lump sum, but it was tough!

Your IP will not be able to get MBNA to sell the debt! MBNA will make their own decision in this regard depending upon their circumstances. Can I ask what dividend you were offering?

I also do not believe that you could not get a law degree if you were to declare yourself bankrupt. Where are you getting this information from?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[go_4_broke]

Hi Melanie

No not good news but I guess 50, even 70p is better than the original 'nothing'.

-Best

New to the forums - but not to debt !

[neverending]

Link Asset management demanding 70p in the £1,this will mean that Joe Public will be paying close to 100% of debt in total over five years once IP charges are included.Things really are getting tough out there.
Why ????