Just starting IVA

[SharonR]

Hi All.
This is my first posting but have been logging on to the forum for about a month now. (It has been a real lifeline for me and reading that others are in the same situation has seen me through some dark days).

I am just on the road to an IVA with Payplan who have been brilliant. My creditors meeting is on the 6 December and I must say I am really worried. I understand that alot of people that post on the site have had problems with IVAs but I am concerned that my IVA will be rejected.

My debts of 61K have mounted up over the last 3 years due to buying a lease on a pub which we could not make any profit on and we were losing money all the time, living off credit etc. We made the decision to cut our loses and hand back the lease losing everything.

As said previously I had some very dark days but felt so much better after the ball got rolling with Payplan. I had in fact been in contact with another debt company for their help who scared me so much as they wanted £2000 up front which we did not have so their advice was to take out another CC to cover their fee and they would just include it in the IVA!!

Anyway I have not been using credit for 6 months now and have been paying my creditors what I can afford.

It feels good not to use credit cards!!

One other reason that I worry my IVA will be rejected is that if it is accepted it looks on paper that I will manage monthy quite well, but it seems that everyone else on a IVA struggles every month.

Payplan have put a proposal of 25p/£ which I thought was too low. They said with the creditors I have they are confident it will be approved and they would rather put forward a accurate I & E that is affordable.

Thanks for listening.

[cr15py]

Hi Sharon, good luck with your meeting on the 6th.

Just curious, who are your creditors?

The way I see it is that it is better for the proposal to be slightly on the lower (i.e. more affordable) side, then if increases are proposed (i.e. an extra £50/month) then they can more comfortably reached than a higher proposal which would already stretch your resources.

PS - Welcome to the forums!! :)

[aguise]

Hi Sharon and welcome
Not everyone struggles on an iva. If you have given accurate income and expenditure then that is what should go to the creditors. If they feel you can manage more they will say so and ask for the changes, but dont agree to anything that you cant afford. It is hard living to a budget but sometimes depends on how you were living before the iva, we had had no credit to use for quite a while and were struggling much more before. Some have unfortunate things happen to cause the problems, loss of job or sickness.
It is definately the norm to worry about the meeting and possible rejection, worry when it happens, easier said than done I know, but try to stay confident. Payplan feel it is a good and fair proposal to put forward then hopefully all will be well.
Keep posting and tell us how things are going.
All the very best for your meeting on the 6th.
Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[SharonR]

Hi

Thats just what Payplan said!
Creditors are:

Natwest (loans/od/cc) 25K
Halifax - 11k
MBNA - 12K
Barclaycard - 3.5K
Inland Rev - 4K
Severn Trent - 2K
Royal Bank Scotland - 2K
The rest are various such as Sky/Freemans

Cheers

[MelanieGiles]

So long as you have put your best foot forward, and are paying as much as you can afford to your creditors, there should be no problem in getting creditors to accept your offer.

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

[Skipper]

MBNA is the unpreditable one in that lot of creditors. They are more random in their voting behaviour than other creditors someone from IVAexpert.com had said.

An IVA budget is OK to live on but isn't great. If you did extra work and got extra £££, above a cetain amount 50% would have to be given to creditors. You could save in an IVA,if you are really disciplined - I aim to save a maximum of 2k a year, in 5 years that could be 10K

<<My motto:I am proud of black culture and is against racist bigotry>

[catullus]

It's good to hear of Payplan insisting on a fair proposal.

Out of your creditors, providing that the proposal reads well and clearly represents a good offer I think that you can be optimistic that nat West and Halifax will vote yes.

In my experience MBNA will vote no and will probably try to persuade you between now and the creditors meeting to do a deal.

I doubt that the revenue will vote.

The % is, therefore, quite tight, and may hinge on how some of the smaller creditors vote.

[SharonR]

Hi
Thanks for the replys.
I think that in the last couple of years we have struggled so much with debt that having it now nearly sorted and therefore knowing exactly what we will be paying back and what exactly we have coming in and going out will be nice.

We have always lived to some kind of budget it is just that in the past we have always had CC to fall back on. I also have overtime which is a help.

MBNA were really really nasty to me when my problems started but once I spoke to their DM department and made regular payments they have not contacted me since. So fingers crossed they will not call me.

Once again thanks for the replys.

[Adam Davies]

Hi SharonR and welcome
It's refreshing to read of Payplans approach but horrifying to read your quote "I had in fact been in contact with another debt company for their help who scared me so much as they wanted £2000 up front which we did not have so their advice was to take out another CC to cover their fee and they would just include it in the IVA!!" Was this a debt management company ? This is appalling and good for you for not going down this avenue
Good luck with your proposal,I'm sure that it will be successful.
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

[Skipper]

About MBNA, from those who have posted here as well,you might get calls or letters to say lets discuss the matter.Incentives might be offered even to reduce that debt on a DMP plan. As Cat' saids it could be tight as they have 20% of your debt. If all the other guys vote for you don't need to worry about them.

They sometime don't vote.Even better I think if this happened to you

<<My motto:I am proud of black culture and is against racist bigotry>

[SharonR]

Hi
The company that we first spoke to about an IVA was Bramley Carrington. They chased me for a couple of weeks after the meeting whereupon they reduced the charges to try and get us to go with them. I just stopped answering their calls and they got the message.

I am hoping that MBNA will vote yes, but I suppose I should not worry about it too much as it is out of my hands at the moment. (Easier said than done!)

Thanks for the replies.
Sharon