IVA Proposal

[Lisa594]

Hi

My partner and I have already remortgaged and have £24,500k sitting in the bank for our IVA. We have offered £20,500 as we both urgently need new cars, his is a heap outside that won't start and mine is leaking water constantly, anyway is it reasonable for us to try to keep £4k back. Also we have sent back the proposal, what happens now and how long will it take? HSBC have 24% vote what do you think the likelyhood of it being approved is? they will get about 45p/£1.

Thanks.

Lisa

[nomorecards]

Hi Lisa

Did you have to ask your IP first before you remortgaged, we are looking at putting forward an offer and remortgaging but thought you had to put in the offer first.

thanks

[MelanieGiles]

Hi Lisa

That depends upon how much equity you have remaining in your property and whether you have any disposable income left having taken account of the increased mortgage payments. What does your IP intend to say about both areas in the IVA proposal?

I am surpised that you have completed your re-mortgage prior to the IVA being accepted. Was there any need for this, as if the IVA offer is turned down you are left with money in the bank and a higher mortgage?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa594]

We were advised to do the remortage to pay off all our debts, but when we got the cheque at the end of it we were about £8k short, I went back to Colin at Thomas Charles, who had left in the meantime, (worried me greatly) to seek advice, picked up by Anne-Marie who suggested F&F IVA.

We have about £14k left in the house and about £50 a month apparently left but not sure I've seen that!!

Has anyone had HSBC voting how did they vote of you?

Lisa

[Adam Davies]

Hi
How many different creditors do you have ?
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

[Lisa594]

Hsbc x2 CC & O/D
Nationwide x3 CC, O/D and Jt loan
Capital 1 x1 CC
Monument x1 CC
Abbey x1 CC

In total about £32K of debt, house is worth about £150K mortgaged to £136k max we could get.

Lisa.

[Adam Davies]

Hi
It just seems a pity with 24.5k available on debts of 32k to use an IP and therefore reduce your dividend from 75p down to 45p.
The danger of having funds already released is that your creditors may want some disposible income and a FURTHER equity release.
If you had fewer creditors i would suggest trying to negotiate a full and final yourselves but you may find it near impossible with 8 creditors.
You ma as well wait and see what your creditors have to say.
Good luck
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

[MelanieGiles]

Unless I have missed something here - if you have debts of £32k abd gav £24k in the bank with £14k still in equity, you are not insolvent. Therefore I cannot see why an IVA is being proposed.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Lisa594]

Andy - I tried that and got no where, when I went back to Thomas Charles and spoke to Anne-Marie she couldn't understand why they didn't accept either, in fact I don't think anyone even replied to the offer.

Mel - we have mortaged up to the limit i.e 90% therefore not able to release equity unless we sell, so in thery then no releasable equity.

You say we are not insolvent but it sure as hell feels like it.

Lisa.

[MelanieGiles]

It is not the fact whether you have releasable equity but the fact that you have equity remaining. You may be lucky and get sympathetic creditors on the day, but I have to say that I am suprised an IP would put forward this sort of offer via an IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I did think of that after I posted,I guess you could always pay off your debts down to an 8k level.Would you be able to pay the contractual payments on 8k ?
Have you paid any money upfront to TC ?
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

[Lisa594]

Hi Andy

What do you mean by "Would you be able to pay the contractual payments on 8k ?" We are look to do F&F so we wouldn't have to make anymore payments.

I've paid £500 to TC, seems like you have to pay out loads for someone to tell you your broke, nothing like taking advangate of you when your down.

The whole thing seems bonkers to me that they would have got at least 60p/£1 but wouldn't deal with me get an IP involved and they end up with 45p/£1, you would have though they'd have bitten my arm off to get the rate compaired to some they end up with.

Lisa

[MelanieGiles]

Andy, like myself, has concerns that creditors will not accept your offer as you have more equity available than you owe to creditors, and are therefore not insolvent.

He is suggesting that if you pay a proportion off all of your debts using the lump sum, then perhaps you could afford to service the remaining £8,000 and thus avoid the need for any form of insolvency proceedings.

The issue is not whether they get 60p or 45p but whether they feel they should be repaid in full from the sale of your property or the securing of charging orders against your remaining equity.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp

[Lisa594]

the proposal said the property value would only be worth £120K if the property had to be sold at auction due to bankruptcy. Do you think they will ask for it to be re-valued then? Do you think they would want the extra £8k as a modification, if so how much would that cost a month? The £150k figure is from the remortage value.

Thanks for your advice, no of this was explained to me before and its all very confusing for people who aren't in the know.

Lisa.

[MelanieGiles]

If your valuation for mortgage purposes was based on £150k, then the property is hardly valued at £120,000. There is too much difference between those figures, and creditors will be very suspicious.

I do not think that they will ask for the extra £8k as a modification, as there is more risk that they will see you do not need an IVA at all.

I think you now need to ask your IP their opinion as to the merits of your offer, as presumably they would not wish to put an offer forward they were not going to get accepted. Do be careful about those property valuations though. Your IP will need to have a valuation of £120k if that is what he/she is relying on in the proposal, and creditors are bound to figure out there was a higher one for re-mortgage purposes, given that this is where you are sourcing the settlement monies from.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

Appoint me as your IP:
http://www.melaniegiles.com/ivaEnquiry.asp