creditors and IP's

[argento]

Hi all,
less than a week until my creditors meeting - stomach's churning already!
What I would like to know is what does an IP do at the creditors meeting if a creditor rejects the IVA proposal? Do they ask them their reasons and then try to get them to change their minds by proving that the IVA is the best option or do they simply accept the rejection? Also, does the IP contact creditors directly by phone or is it all through letters and faxes? And, also, if a creditor says that they would accept the IVA depending on a modification (e.g, an increase in the monthly payments), given that the IP knows how much disposable income the debtor has, would they refuse the modification if they think the debtor can't afford it or would they have to contact the debtor for a decision? Does the debtor have the final say and even if the IP thinks they can't afford the modification, can the debtor over rule them and demand to agree to the IVA modifications?
Any advice, anyone?
Thanks.

[MelanieGiles]

Hi Aregento

I can only speak for my own firm here, but every effort is made to find out why creditors have rejected and to try and persuade them to change their minds. We are very successful with this, apart from with one particular creditor who have a policy of rejecting most IVA proposals - but do be honest we don't take cases on where they figure at more than 25% in any case now.

Remember it is not the IP's role to accept modifications for you - indeed to do so would be extremely dangerous and put the IVA into jeopardy - so you need to consider all modification and make sure that you can comply with them - particularly relating to requests for increased payments.

I am afraid that the ultimate decision makers are your creditors, and if you are unable to agree terms then the arrangement will not proceed.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[argento]

thanks Melanie,
the only reason I ask about modifications is that my wife is a hairdresser who normally makes between £20 and £40 a week in tips which our IP didn't include when calculating our household income becasue tips are not garunteed. If the modification was to increse our payments by £40 or £50 pounds a month then we could because of this extra money - yes, even though they are not garunteed but I would rather take the chance and have the proposal accepted!
P.S
That tough creditor you speak of, it's not NR is it by any chance, coz they're my main credior. Gulp!
thanks for the help.

[MelanieGiles]

I am afraid so, argento, but I think that this has been discussed on other posts? Northern Rock are rejecting the majority of IVA proposals submitted to them, but do look at each one on an individual basis to determine whether they represent a good return to them.

On the bright side I gather that they are accepting at least 10%, and I have had cases accepted by them over the last couple of months - and I am sure that your own IP would not put a case forward unless they felt there was a good chance of success.

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

To appoint me as your IP visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[argento]

thanks melanie,
seeing as how my IP gets no money up front and is only paid if the IVA is acepted then I'm sure there must be some hope of it being successful.
Good luck everyone else!

[OPTIMIST12]

Argento -

I never expected my IVA to be approved but it scraped through with a 79% acceptance at the creditors meeting. Don't give up hope!!!

[argento]

cheers optimist.