Just a thought - Wondering what others think?

[Rainbow]

Currently we are in the process of GT drawing up a proposal for an IVA. They are using endowments as capital which is £14K approx, to offer to our creditors which are MBNA, HSBC, Nationwide, Mint, Capital 1, Egg, American Express, Cahoot, Barclaycard and Morgan Stanley for combined debt of £110K. We were thinking about writing to the creditors before the proposal is signed etc. and asking them to accept 20p in the pound and avoiding IP's fees. We know that it is unrealistic for them all to accept this but thought if some did we could pay them off and then go into a DMP instead of a IVA.

Look forward to your thoughts on this? Are we allowed to do this?

Thanks in advance
Rainbow

[MelanieGiles]

I don't really think that you have much chance of success with that suggestion Rainbow, as you will probably find it difficult to locate actual decision makers within the banks who will give you a yes or no.

With debts of £110k are you really sure a DMP would be a better option for you - it will take forever to repay the creditors. What level of disposable income do you currently have?

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

[Rainbow]

Hi Melanie

Thanks for your response - GT have recommened that we pay £618.00 per month into a IVA but I don't know what pence in the pound is, so I guess that's our disposable income. We can't remortgage as only have equity of £4K left because of secured loan which will run until 2019. We were thinking about trying to pay off the large credit card bills and then plod away at the smaller ones under 5K. Currently MBNA have the highest poportion of debt so will have a bigger say and I they did write to us to ask us to settle on a figure of £2.8K each but having looked at the wording on the letter more closely it says that it is a partcial settlement and will be marked as such on our credit record not that we are bothered about that - We don't want to see another credit card ever!

Are we allowed to write to the creditors and ask the question though?

Thanks

Rainbow

[MelanieGiles]

Rainbow

You need to talk this through with your IP. I do not think that they will be too pleased if you are going out to the market place with an alternative suggestion, as they are obviously also writing to your creditors as well.

It is time to make the decision as to whether you want to propose an IVA or not. I suggest you give this more thought over the next couple of days - simply because you seem very uncertain - and make a final decision. Why not ask for a face to face meeting with your IP if things are seeming a little concused.

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