Such a mess...16p of a 1pound ?????

[Nat]

I recieved my IVA propasal today, all they are offering my creditors is 16p of the £ after reading others posts im terrified that it will be rejected. If this is the case im not sure how to proceed??

i currently owe £68K, and earn £1763 a month, with a disposable income of £350

[MelanieGiles]

Hi Nat and welcome to the forum

This offer is below the generally accepted 25p in the £ minimum dividend, but that is not to say it will not be acceptable. I am sure that your IP would not have put it forward if they felt it had little chance of success, and personally I favour lower dividend IVA's so long as the costs are proportionate to the return to creditors.

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

[Nat]

Thank You Melanie. Do you have any additional advice whaere I can go to to find out if IVA is suitable or if BR would be more appropriate.

As part of the IVA I have been told i will have to remortgage my flat in 4 yrs releasing any equity to the creditors. Im confused about this, especially as I purchased my flat 1 year ago and currently the IVA are quoting i only have £6500 equity in it at present.

What will happen in 4 years if I remortgage but cant afford the higher remortgage payments along with my final years IVA payments, surely thats putting me back to square 1???

[keh]

Welcome Nat,

With your proposal i take it you own your own home and they will look for a release of equity in the 4th year to bump up the total repaid

Keith

The long and winding road will straighten out eventually....keep the faith

[Nat]

Yes, I think?????

Because i have a fixed rate mortgage it will cost me £4000 to remortgage earlier than in 4 yrs time.

Surely if Im not going to gain any benit from the value in my increase would I not be better filing for BR and renting??

[Adrian Ratcliffe]

Hi Nat,
Take time to read all the old posts on here.
Most of your questions will be answered.
Think long and hard about committing to the IVA
The equity question depends on what has been written into you IVA.
Who knows we all be in negative equity by then.
Best wishes
Adrian

[keh]

Nat,

Don't worry about 4 years time concentrate on today.

in four years prices would have gone up (i hope) and your equity would be bigger, and maybe you will re-mortgage and be able to offer a full and final settlement and therefore no more IVA payments only the mortgage.

But as i said before thats in the future and we got to concentrate on today

Keith

The long and winding road will straighten out eventually....keep the faith

[MelanieGiles]

Nat

You really do need to discuss these issues with your IP before you sign up to proposals you may not be able to service. Did they explain all of the options available to you at the time you discussed matters with them initially. These days IPs have to keep contemporanous notes of the advice given to clients, and these have to be signed off by the client before they can proceed with an IVA. Have you been asked to sign any advice notes at all, and do they accurately represent the advice and options you were given by the IP prior to the preparation of an IVA proposal?

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
Just one more thing.
60 X payments of £350 total 21k,less IP fees of 8k max means 13k to your creditors and on a total debt of 68k I make that close to a 20p dividend.
Regards
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