IVA Rejected

[Beverley]

Creditors meeting today - total amount owed was £85k, immediately offering 30p in £, but with pay rises and bonuses this would have been 70p during the course. My IP informed me that 90% of creditors voted no.

My brother has just called me about 5 minutes ago - his credit cards got frozen over the weekend - he called his bank and told him that he was declared bankrupt? How can this happen when it has nothing to do with him and he lives in the same house? His credit history is excellent. How can they say he has been declared bankrupt - when I even havent been declared bankrupt? Surely there has to be a procedure in place for this to happen?

What are my options now? IP said that it has been rejected on the basis of an exaggerated I&E schedule and there's no way he can go back with a revised one (eg if i convince parents to not take any rent off me - long shot but may be possible). On the basis that they rejected an IVA is it likely that they will reject a debt management plan? Having to go bankrupt will mean losing my job and I will take the option of moving abroad.

Am at work and feel totally lost and feel like my head is going to explode. Help.

[sonyse2t5]

Hi bev,

I remembered your previous post about your IVA. I recalled totalling up some sums for you.70p to the pound would be around nearly 1K a month to creditors.

Sorry about this IVA rejection. Basically, your creditors are for 85K debt expecting at least 40p or more to the pound. Even though you may have promised a higher dividend in the future they can only go with what's NOW on the table. Besides, any extra income in the future -half of which will have to go to creditors.

I am keen to kinow who your creditors are, can you post them again and who voted Yes??

Your options are not necessarily BRs. You can vary your submission within 14 days of the meeting and/or post a new iVA offer in six months time. Your income may have improved then to allow that to happen.

In the meantime get in touch with CCCS(its free) to arrange a Debt Management Plan with all your creditors. In six months time resubmit.Your creditors will not want you to go BR. Unless they all reject your DMP which I doubt.

The DMP section and the Insolvency section in Banks are NOT staffed by the same decision makers(MBNA is one)

DMP buys people time to figure out the next move.

IVA legislations are changing with something called SIVA to be introduced next year with only 50% of creditors needing to vote YES. So don't be dismay. Resubmit in six month time.

[Adam Davies]

Hi
Sorry to hear of your rejection.
Banks quite often prefer a DMP as they effectively keep your debt on the books unlike an IVA or bankruptcy where the whole debt is written off.
I would look into a DMP as this will give you time to plan your future,it is very unlikely that your creditors will want to make you bankrupt.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[bagpuss]

so sorry....i do hope things turn around for you.

wish i could be of more help. xx

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Beverley]

Does anyone know why my main creditor has told my brother that they have declared him bankrupt?

Which debt management plan company do you recommend - CCCS or Payplan?

[iva experts]

Hi Beverley, sorry to hear that your IVA was rejected, I would've thought that the I.P should've known if your Income and Expenditure was exaggerated before your creditors meeting.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[Beverley]

Only max recovery voted yes. Natwest owned more than 25% of debt and voted no. I dont know whether to go BR or pursue a DMP

[Beverley]

I feel that my IP should have been aware of this - as reading the posts on here it seemed that the creditors would view the I & E to be excessive (it was correct though). I was saying to my other half just a week ago I feared this to be the case. I am where I am - and will need to deal with the latest obstacle.

[couple31]

If you are willing to share the I+E with us, it would be interesting to see what they view as excesive for those of us that have forthcoming meetings

Obviously, if you'd rather that remained private, I fully understand

Thanks

[iva experts]

In regards to the situation with your brother, the best way forward is for him to get a copy of his credit report. This way he can see if any of your debts have accidently been associated with him as your are under the same roof. If your debts do show on his report he can always contact the credit agency and disassociate himself with your debts.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[Adam Davies]

Hi Beverley
Your main creditor sounds as if they have got mixed up with you and your brother.
Banks tend to class bankruptcy and IVAs the same,i;e your insolvent.
Your brother needs to visit his bank and get them to sort his accounts out.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[sonyse2t5]

If Natwest have over 25% of the vote and said 'NO' then it doesn't matter how the others voted as there is no way you can get 75%. As Max R voted yes(cheeky bu**gers) as they still would gain as one of your creditors dumped the debt on them for next to nothing.

You need to somehow submit 40p at least in today's IVA climate. Your IP should have advised caution at anything less than 40p with 85K.

If your DMP will take forever and creditors say no to the payment then go BR.

But see how a DMP will work out for you in the meantime.You can BR any time after that.

[MelanieGiles]

This sounds to me as if incorrect figures were presented to creditors, who have asked for a substantially higher contribution. If you were happy with the figures presented, and they merely did not fit the allowances deemed reasonable by your creditors, then you do need to be careful not to take on ongoing commitments which you know you cannot afford. However, for your IP to say that there is no way he can go back with a revised budget - what does that mean? That you cannot afford to increase your offer, or he/she does not want to present revised figures for you.

You do have a period of up to 14 days to reconsider a revised offer, so instruct your IP to adjourn proceedings so you can have a good think about things - and get a second opinion if you feel unhappy about the decision made.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beverley]

Thanks Melanie. My IP said that if they go back with revised I & E that the creditors will want to know why we didnt offer a higher return in the first place. He said creditors totally £62k voted no and whilst only vague reasons were given, it was def due to high I & E. I was worried about this a while ago and think my IP did not give it due consideration and I was "led" by their advice. The expenditure was what was actually being spent even though it seemed high. For example, £600 for food for 3 people in a month. When I get my report back I will post all details on here so maybe the info can help others out. I will try to speak to CCCS or Payplan today.

[R1chard]

600 for food for a month seems very high to me.

for two people i was allowed 180.

58 PAYMENTS TO GO..