Update on HSBC

[MelanieGiles]

Your DLA money will be viewed as income, and your IVA payments will need to be adjusted accordingly, however as Andy says the motability element of the allowance will be used to fund the provision of a car.

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

[rattbags]

Still no decision 3 days after creditors meeting - I'm going mad! Egg have now said they require £427 a month. During my initial consultation with Clearstart, they calculated my disposable income available to go towards the IVA to be £303 a month, then when the proposals came through it had gone up to £350, then HSBC asked for £390, and now Egg are asking for £427! Considering the £303 was calculated on realistic income and expenditure figures, where do they expect me to find the additional £124??!! I've told them I can't manage that, and reiterated the point about how much money I spend on petrol/hospital parking etc due to my disability, and the IP told me he knew nothing about that, despite the fact that I'd discussed it in depth with my caseworker and put it in my written statement! This whole thing just seems to be a mess, and now I'm waiting yet again to hear a decision from Egg based on this 'new' information.

Is all this messing about common?

[MelanieGiles]

Ongoing negotiations with creditors are very common post-creditors meeting, and your IP will be acting in your best interests in trying to agree an affordable contribution. Care must the taken to ensure that you do not agree to pay something which you really cannot afford.

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

[rattbags]

I still don't have a decision - Egg came back asking for more details about what sort of car I run, how far it is to work, how often I go to hospital etc. My petrol allowance had been bumped up to cover such things as parking at the hospital (it can cost me up to £5 a time) so the figure does appear high. It's been an awful weekend worrying about all this, and it's not looking promising. I honestly can't afford more than the £400 offer I made (which was meeting them half way) - I just know that it would be silly to agree to more when I know I wouldn't be able to maintain it. I'm trying to get myself out of a mess not just into a different kind of mess!


If Egg cannot agree to the £400, what is the next step? Will I need to file for bankruptcy myself? Or is one of my creditors likely to do it? I understand it will cost me £485 - is that whether I file or they do?

Thanks for everyone's help so far - I'm in such a state over all this so the advice is much appreciated. Thank god for the happy pills!!

[Adam Davies]

Hi
You could try to arrange a debt management plan instead of bankruptcy or you could file for your own bankruptcy,cost £485.It is very doubtful that one of your creditors would petition for your bankruptcy.
You are so right to stick to what you can afford,you never know they may read this forum and realise that the alternative is bankruptcy for you and next to nothing for them
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

[rattbags]

I did look into the possibility of a debt management plan, but it would take me so long to pay back what I owe it didn't seem a realistic solution. I got the impression that I'd have to spend many years keep renegotiating with creditors etc.

I had of course been trying to avoid bankruptcy, but I'd rather do that than get into even more of a mess by agreeing to something unrealistic. I've lived with this situation since my disastrous (and expensive!) marriage 13 years ago and it's caused me enormous problems emotionally - I take anti-depressants and am undergoing counselling, so if bankruptcy is the most straightforward way out of this nightmare then so be it.

Surely if the IVA isn't agreed and I am not paying my creditors they would take action against me wouldn't they? Would the best bet be to file for my own bankruptcy as soon as possible?

[emma_t]

Hi rattbags

I do hope you get things sorted and your iva is accepted soon, it must be an awful time for you with ongoing issues.
I just wanted to say please don't agree to something that is not realistic for you as it will be sure to fail, i know these are desperate times but if you have put forward your best offer please don't feel presured into agreeing more. You know what you can realistically afford for the next 60 months, and you need to stick to it.
I wish you lots of luck and hope you get some positive news soon.
Emma x

[MelanieGiles]

If you have made your best offer to the creditors, your IP ought to be fighting your corner and demonstrating to creditors the merits of your case.

Please do not agree to pay something that you know now you will not be able to afford. This will lead to IVA failure and possibly bankruptcy proceedings, which justs wastes everyone's time.

Do you owe more than £25,000 to Egg, as if this is the case Egg direct the voting themselves rather than relying on their usual representatives, which might be causing the delays.

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

[rattbags]

I don't know the exact figures that I owe including interest (I presume the IP has obtained these figures from my creditors) but I'm sure that the amount I owe to Egg is below £25,000. My biggest creditor is HSBC which off the top of my head is in the region of £23k, and they voted yes with an increase in contribution of just £40 (making it £390 per month). Egg are still looking for £427 as far as I know. I know I can't afford more than £400 at an absolute maximum - although I know things have got to be very tight for the next 5 years I won't agree to something I have no hope of paying.

[rattbags]

Just to let you all know... it's finally been approved! Egg agreed to the £400 in the end. Such an enormous relief - thanks to everyone for all your support the last few weeks, it's been so helpful to have somewhere to 'talk' about it!

[caraf]

CONGRATULATIONS for everything. I bet you feel as though the whole world has been lifted off your shoulders, you might even sleep tonight

[Skippy]

That's really good news Rattbags - good luck for the future.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

[caraf]

I am just trying to set up an iva at the moment and Egg are one of my creditors.
What was your total debt and how much have they accepted in the end.
Just trying to find out if Egg are a good creditor or not

[Adam Davies]

Hi
Well done,it just shows that it is worth sticking to your guns rather than agreeing to a figure that you know will be impossible to meet each month
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

[rattbags]

Caraf, I don't have the final figures to be able to work out how many pence in the pound it worked out at - the IP had to reduce their fees, and I'm not sure what the total amounts outstanding are, but I owed a total of about £43k, about £17k of which was to Egg, and am paying back £400 a month for 60 months. Egg were quibbling over my income and expenditure (they thought certain amounts of expenditure were too high so I had to reduce some, and justify others), but once I'd done that they agreed.

Hope that helps.