Hi! I'm new to the site - came across it a few days ago and am so glad I did!! There is a wealth of useful info and it's so nice to hear other people's stories - I no longer feel so alone in our situation. My partner and I are just in the outset - waiting for our IVA proposal to be drawn up - it's such a scary time, with the responsibility of our 3 little ones in our hands I dread to think of our outcome if we don't get accepted - very trying times is all I can say! It is pretty much all we think/talk about at the mo and I'm finding it physically and emotionally exhausting! We haven't dicussed our situation with family or friends either which is why it makes it even more comforting to come to a place like this! Thanks for listening!
It is a worrying time for you, but as you can see, you're not alone. You have faced up to your problems and there will be a solution for you. Do you know when you're IVA creditors meeting is?
The forum is a great place to find support, if you do not feel that you can discuss your financial difficulties with friends and family. We are all friends on here - and there are professional experts, and others who are experts from their own individual experience, so there is a wealth of resource to tap into which were are more than happy to share.
Hi and welcome to the forum. Good luck with your proposals and hopefully everything will go through without any problems. Even after the proposal is accepted five years is a long time and hopefully this forum can help you with any queries or problems you may have. Keep posting.
Thanks to you all for your kind thoughts. We have only just started down this route after final 'realisation' of our sitation and we have been told this the best one for us so here we are! still with many questions though. I have read that the acceptance rate is around 75% for an IVA, but the company we are going with say they are running at a 95% acceptance rate and re-assrued me they wouldn't take on our case if they didn't think it would be successful. This is probably my main worry at the moment as what would the outcome then be if it failed? Also, in the meantime our debt will only worsen if we stop creditor payments - so come a few weeks down the line and we don't get accepted my partner's credit rating will be a mess (his has always been good as he is the breadwinner currently and when things got tight we believed it better to stop my creditor payments rather than his first to protect ourselves, not sure if this really makes much difference as it is a joint mortgage, but until we found out about IVAs we were considering all sorts like a cheaper mortgage so his credit rating needed to be good!). Sorry to ramble, but basically, what would our options be if we didn't get accepted and we are both left with bad credit ratings and more debt? Any thoughts much appreciated? Thanks!
I take it that you are both going for an IVA? If that is the case, regardless of whether or not the proposal is accepted, both your credit ratings will be shot for 6 years from the date of acceptance.
If you are not accepted, you can always do a debt management plan. This is not a legally binding agreement so creditors can still add interest and charges if they wish and it will take a longer time to pay off, but it could be a temporary fix whilst you think about what you are going to do. If an IVA is rejected, there is no reason why you cannot try again in a few months time.
As you are obviously struggling to make payments, then sooner or later your partners credit rating will be poor as well.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I had a 98% success rate in 2008, so as you can see the majority of IVA proposals are accepted, once an IP has taken time to consider your situation and decide whether an IVA is appropriate. I am sure that you will be absolutely fine with your own application.
As Melanie says most IVAs are accepted and the majority of IP firm work on a no win no fee basis. Therefore your IP firm is unlikely to offer a proposal which is likely to be rejected or fail as it benefits no one.
Your IP will have discussed all options with you and in the unlikely event that your IVA is rejected these same options remain. Hopefully this will not be an issue.
Hi there & welcome from me too..you've definitely come to the right place for friendly advice & support,and it's great that you no longer feel alone,as like you say being in this situation can feel quite scary..but you have taken those first important steps of realising that you have a problem & then finding the courage to seek help,so feel proud of yourself & remember that things can only get better from here..wishing you lots of luck with your proposal,keep us posted & take care[:)]xx
Thanks again and sorry to come back so soon with more questions, but I just read a reply of yours, Melanie, to another poster here that only four IPs were managing to get HSBC creditors to accept at less than 40p in a pound and I'm pretty sure what we are looking to offer is less than this and HSBC is one of our main creditors! We are currently working with Debt Free Direct. Can you enlighten me on this? Are we unlikely to get accepted if we offer less han 40p?
Hi Melanie, thanks again for your reply. Would you be able to disclose on here the ones that have been successful? In your proffesional opinion do you think HSBC are likely to decline? Yesterday, on discussing our proposal with DFD he talked about a return to the creditors of 29%, so I'm guessing this equates to 29p in the pound? Please correct me if I've misunderstood as this is all new territory to me! If this is the case 29p seems substantially lower than their benchmark of 40p. DFD never mentioned anything about this; should we be worried and possibly be looking to one of the other four firms to take our case or should I mention this to DFD?
First of all does HSBC have 25% or more of your total debt? If so then it could be a problem as DFD have the hurdle rate to manoeuvre around.
There are 5 firms that HSBC are not applying the hurdle rate to and these are:
Freeman Jones
Wilson Pitts
Melanie Gile's firms
Payplan
ClearDebt
Why not give one of them a ring and chat through your worries.
By the way if 29p in the pound is what DFD say is appropriate then that will be the case with whatever practitioner you go with.
Let us know how you get on. Good luck and don't worry we are all here to help you.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
