Some questions for those approved.

[drowning-mummy]

Hello,
A slighty calmer Karen here.
Today recieved fantastic news that Melanie is to be our IP. Now onto the next step.

Just a few questions:

1. Just read soemthing on Glen71s post. One of his creditors is going to vote no because the debt is so new. Thats my biggest fear. We owe egg over one thousand and have not yet made a single payment. Aside from the Peter and Paul effect, we have also lived beyond our means and up until a month ago I was still ordering from catalogues because I couldnt afford to go into a shop and pay outright. Do you think we are likely to be rejected because of this?

2. For those that have been on this site a while, how often do you hear of IVAs being rejected? I know Hammy had theirs rejected, on average what percentage would you say get rejected and what do they then do?

3. When creditors look at your file, do they look at your original application for credit? The reason I ask, is that I have always quoted my full time salary, even when on maternity leave. I have now only just decided that I will be going back to work part-time, as my children are too young for me to be out of the country up to 5 days a week? Will they see that as fraud and reject it on that basis?

4. I'm going to empty my loft and cellar and sell as much as possible on ebay and boot fairs. Will my bank account be watched and monitored closely? I wanted to put the money in a savings account I have set up entitled holidays, as we have never taken the girls away, but I dont want them to think badly of me. Will the money be treated as a windfall?

5. My Childrens CTF are with our major creditor. Can I still pay into these (£10 pm) or will they take the funds? Its the Halifax.

Many thanks if you can help, or point me in the right direction, ie links etc.

Love Karen x

[Lisa2009]

Hi Karen

Try not to worry too much if Melanie is going to be your IP. I'm sure she would put together a proposal unless the thought it would be accepted.

The debt with egg is a relatively small one so if they did vote no im sure there would be plenty of room for other creditors to over ride their vote anyway.

If money you make from ebay and boot sales is only small ammounts then it shouldnt be taken from you. Only regular earnings or large ammounts would be taken into consideration.

I'm sure Melanie will be along shortly to put your other worries to rest xxx

[drowning-mummy]

Thank you. I was hoping to make about £400 altogether over a couple of months, I've already set the account up with £10! Did feel extremely guilty as it was money that would normally have been put towards debt, but now that we have had to stop paying.............

[glen1971]

Hi Drowning Mummy....Just to advise you that some creditors may look your proposal unfavourably if your debt is less than 12 months old. This will only be a problem if it is one of your largest creditors. In your case if egg reject the IVA proposal it will not have too much baring on the result as the debt is quite low. The reason they have rules on new debt is that you might have taken out the debt knowing you could not pay it back.

Best of luck on your proposal.

Glen.

[drowning-mummy]

Thats exactly what I thought too. Unfortunately all of the debt is less than 2 years ald and the bigger part of the debt is less than a year. We have every intention of paying back, but 5 P45s and 2 babies later we are in up to our neck. I know they wont look favourably on it, especially as we robbed Peter to pay Paul. Well I'm glad that Melanie is our IP. I'll try not to panic too much, but I'm not holding out too much hope now sob sob............

[debtfreesusie67]

Don't panic drowning-mummy. Wait and see what Melanie says. As Mrs Skint said melanie is great and she knows what she is doing. She won't put a proposal through unless she thinks it will be accepted.

[glen1971]

Drowning Mummy,

My reply was not intended to be judgemental of your situation. But please remember that the creditors only want the best return they can get. If you put up your best offer they would be silly to dismiss it out of hand as bankrupcy will give a much lower return. We all have been guilty of taking the "easy option" and taking up more and more debt without really thinking about how we expect to pay it all off, but at least we have now realised that something needs to be done and have faced up to our debts. I am also with Melanie's team and if anybody can do it they can.

Keep positive....what's the worst that can happen!

[Viki.W]

Karen, please don't worry. Call Melanie or Angela anytime and they will reassure you. don't worry about new debts either, I'm in the same situation.....really! I'm sure Melanie will be along shortly to make you feel better. Like everyone else has stated, Melanie would not be putting a proposal together that she didn't think would be accepted. Thinking of you. Viki X

[drowning-mummy]

Thats what I think too Viki, that Melanie would not accept it if it didnt stand a chance. I speak to Tina and feel so reassured, but give me a couple of hours and I'm all over the placen!
Glen I didnt take any offence I promise. I asked lots of questions and wanted honest advice and opinions, and now I'm getting them. I too thought what you thought, as yes lots of people could con the legislation, only I didnt even know about IVAs until last friday!

Like you say Glen, What is the worst that can happen? I just called hubby and unleashed my new worry "we'll fail, we wont get approved" I wailed. He simply said, "well we cant pay!"
But can people go to prison?

[kallis3]

They won't send you to prison for not paying your debts anymore - I don't think there would be enough room for one thing! Debtors prisons died out a long time ago, so don't worry about that.

I am sure your IVA will be approved

[angela18]

did there used to be debtors prisons!! oh how scary..

[kallis3]

There certainly were! Don't know when they died out though. My hubbie has also just given me this piece of (useless) info - apparantly when you were made bankrupt it was at a place called Carey Street which is in London. A mine of information he is!

[thanna]

We all had to rob peter to pay paul so don;t feel badly ,we;re now two years in so good luck!!! Tracyxx

[angela18]

oh god thats awful.. no wonder the older generation paid cash for everything!!

wish somebody had told me there still was such a place.. maybe would be rich!![:I]

[kallis3]

I think it would be a definite deterrent! Lets just hope they don' decide to bring them back!