iva rejected?

[kezza]

If an iva proposal was rejected, does that automatically mean bankruptcy or can you organise a dmp instead?

I do not have any assets but would not like to go bankrupt as I would have no job (self employed)The creditors would get far less if I was to go bankrupt. Does this have a bearing on how they would vote?

[MelanieGiles]

Kezza

What type of business are you in? It is not automatic that this would be closed down in bankruptcy, you are allowed to earn a living!

Creditors do look at the reduced dividend in bankruptcy when they are deciding whether to accept or reject an IVA, but there are obviously minimum acceptance criteria depending upon who they are. A DMP is also possible depending on the level of your disposable income.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[kezza]

I am in retail, disposable is £440, debt is £64000

[MelanieGiles]

OK - potential problems then accepted with bankruptcy, but I cannot see why an IVA would not be accepted so long as you don't have any of the tricky creditors (HSBC, Northern Rock, Black Horse, MBNA).

On that disposable income, you will be paying a neverending DMP - so every effort should be made by your IP to get the IVA through!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[kezza]

Unfortunately yes i do
HSBC, MBNA and Black horse! (along with some others)
Getting worried now [:0]

[MelanieGiles]

Kezza

Your IP would not have agreed to take your case on if they felt it would not succeed. Some cases are more tricky than others, but presumably if you have met your IP they must think that there is a reasonable chance of success, and do remember that on the whole creditors rarely really want to see people going bankrupt.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Kezza

Try not to worry too much. We have had many clients have their IVA proposals accepted with all the aforementioned creditors. Your IP wouldn't of taken on your case if they didn't feel that was a strong chance they would get it through.

Good luck and please keep posting to let us know how you get on.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[kezza]

Thanks for the reassurance but it's still hard not to worry about it [:(] I will try and hopefully I will get my creditors meeting date soon [:)]