Pence to the pound

[rainbow210801]

Had my proposal sent to me finally. Constant phone calls to my IP.Spelling and grammar appear quite poor in the proposal. The return to creditors appears to be 29p to the £. With remortgage offer of 15K at end of year five.
29p to the £ appears quite low from what I have read on this forum for a approval.
What do you think

[MelanieGiles]

Hi rainbow

What a shame that you are disappointed with the quality of your IVA proposal. Do bring this to the attention of your IP and ask them to make corrections as necessary, as it is eventually deemed to be your proposal and your are therefore fully responsible for its accuracy.

If 29p is the best you can offer, then it has to be a good deal for creditors. So long as you do not have HSBC as a majority creditor you ought to be OK.

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

[rainbow210801]

I do have HSBC. Unfortunately I owe the most debt to them. I owe 100K debt and 35K is owed to HSBC. My partner has about £100K debts and we she owes about £30K to HSBC.

HSBC have not been ringing me as much as the other creditors.

[MelanieGiles]

Hi there

HSBC are unlikely to accept anything under 40p in the £, although I gather than there may be an element of discretion if the dividend is between 30p and 40p - with the emphasis that the nearer to 40p the more chance of acceptance. I have to say that I am suprised that your IP is putting this forward at 29p, and I will be very interested to know the outcome.

Don't mean to scare you, but you might want to question why the IP thinks they can get this accepted before proceeding. Maybe GT know something I don't! And if that is so I want to know what it is!!

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

[rainbow210801]

Yeah I agree - Melanie, is there an easy way that I can work out what the dividend is that we're offering as I'm also surprised that GT are offering 29p as it does seem low? I know that our monthly payment combined will be about £938 and our total outstanding debt is £211k. The proposal includes an equity release in the fifth year of £15k - I'm not sure where this figure is from either so will ask that in the morning.

[MelanieGiles]

There should be pages within the proposal documents which clearly set out the calculation of the dividends. It appears that fees in excess of £10k are being charged, but I have to say that these are not excessive given the level of your debts.

At this stage it is very important to understand where the figures derive from - especially as some of them involve the treatment of your home. has the equity release provision been appropriately explained to you by your IP at interview?

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

[Adam Davies]

Hi
I,m a bit surprised that the spelling and grammar appear quite poor in the proposal.You would have thought that a document as important as this would be checked.
I would question GT on the dividend given that HSBC are major players and I would be surprised if a modification is not put in by your creditors insisting on a fourth year 85% equity release,rather that the fixed 15k.
I do hope that you are both 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

[rainbow210801]

Hi, we questioned the calculation with GT and guess what???

They were wrong, apparently some software fault and some figures did not feed through correctly - I dread to think what would have happened if we hadn't contacted them.

The dividend is actually 40p per £ not 29p and relies on us remortgaging at the end of the 5th year to release £37500.

We've only received e-mailed versions of the proposal so when we get a hard copy we'll go through it all, the one key part it omits is that if I (wifey) am made bankrupt my contract of employment will be terminated - do you think that should be mentioned in the comparison of IVA v BR, or should I leave it out?

[MelanieGiles]

That is crucial information for your creditors to be aware about, and certainly ought to be mentioned within the proposal. There should be a section entitled "Advantages of an Individual Voluntary Arrangement" and this should feature as a point therein.

I bet you are glad that you checked with them now, and I am glad that the forum was able to help draw your attention to this vital issue.

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

[rainbow210801]

definately and thanks Melanie we appreciate your help - hopefully we'll get a paper copy today but that's likely to be the 29p version. I'm going to offer to GT that I make the amendments, print then sign what we've got because if I wait for a right version its likely to drag on- we were promised this proposal before the end of last week. I have already told them about my role and the consequences of BR so was surprised there was no mention of it.

[Adam Davies]

Hi
What a crucial part to miss out!! Appalling,it,s like running a bath and leaving the plug out.
Make sure that your IVA is proposed with this information.
It does make you wonder who actually puts these proposals together in large organisations and if I was an IP I wouldn,t want my name on a document with so many errors
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