About a month ago I finally faced up to the fact that i cannot continue robbing Peter to pay Paul and have looked seriously at all the options. I have been assisted by the National Debt Helpline and am currently awaiting a response regarding an IVA proposal having submitted my details to them. I am just a little concerned about this for the following reasons:
1. I don't get to choose my IP, could be 1 of 4
2. It seems to be adding a delay and I just want to get on with it
3. I feel a bit detached from the process
Now I am impatient and only sent the details back last week so i guess it's early days but the pestering calls have started and it has got me a bit jumpy. I have sent letters to all creditors as advised, included token payments but responses have been absent or negative so far.
I was attracted to the National Debt Helpline because of the IVA protocol 2008 and perceived protection of my mortgaged home e.g. If I cannot remortgage after 4/5 years I can pay for another year. Do all the IP practitioners on here follow this protocol? I must say i am tempted to contact Melanie after reading many of her responses.
For the most part, yes they do. There are however times when non protocol IVA's have to be proposed, but if that is the case then you would be notified as to the reasons why, although in practice it makes no difference at all.
Waiting can seem eternal, but I am sure that NDH are doing their very best for you.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I know what you mean about the 'clutching at straws' stage LadyH!
My advice would be make sure that you hre 100% happy with the figures that are being proposed and don't just say yes because you want a solution to your problem. You will know in your heart whether or not it's affordable and achievable.
If you are not happy try another firm.
I would imagine you have read the forums and are quite aware of allowances etc now.
I changed my IP firm for exactly the reasons above.
The calls will come, I've been receiving them for months now....I unplugged the phone.
Now I have the date for my creditor meeting I am plugged back in and all is quiet on the western front.
It was quite funny when my friend wanted to ring me she would send me a text telling me to plug myself in, she doesn't need to do that now!
Good luck x
7 year IVA completed in December 2016 - there is light at the end of that tunnel
Hi Mark,
It should not matter which IP you have as they all will do the same job. We have five IPs and any one of them can act as nominee and supervisor.
The protocol is also a red herring because irrespective of which insolvency practitioners use it, not all creditors support it. Some creditors do demand the sale of properties and their modifications supercede anything in the protocol.
If your case is straightforward it should not be long before you receive your proposals, but there may be delays if for example you are self employed.
From personal experience, I think it does matter which IP or IP firm you choose as not all seem to be as fair and on side with the client as the IPs and experts on this forum are. Some seem to just fudge the figures to get the proposal through, to the detriment of the client.
I'm not speaking of the National Debt Helpline as I have no experience of them.
On the protocol point, would this be more in the case where the client had a lot of equity in the property?
7 year IVA completed in December 2016 - there is light at the end of that tunnel
My firm have been protocol compliant ever since the protocol was introduced in February 2008, and indeed a number of firms are now using these procedures.
I would be interested to know who the four firms are that the NDF may pick for you - I think I know two of them but it would be useful to know who is linked to who.
I am also with National Debt Helpline and we have our Creditors meeting on Monday 7th December - Natioanl Debtline put us through to Debt Lifeboat and we have had no problems so far - they have been very helpful and always available to speak to. They have been up front with us about what to expect and have suggested our car may be an issue but we will have to see as what I gather from this forum is every case seems to be different and you cant account for individual circumstances/how creditors are on the day?????
What exactly do National Debt Helpline do as part of the referring process? Do they complete a statement of affairs with you, and provide advice as to all solutions, or do they merely refer you to one of the four firms they use who then do this work?
Why do Debt Lifeboat feel that your car is going to be an issue as a matter of interest?
We were able to keep our car, no mention of it having to be sold.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
*If* an iva is deemed as appropriate for you they send out an IVA pack which you complete and return before your referral. They are also keen to point out that the companies they use must follow the 2008 iva protocol which is a big attraction for me. Although my iva may contain an equity release clause if i am unable to remortgage in the 4/5th year I will not have to sell the house but may have to continue payments for a 6th year. Also, they do not wash their hands of you if you do go down the iva route and will still provide help and support. Please note that this is based on my understanding and what I have been told so far.
Mark - it is reckoned that around 80% of IVA proposals that are placed before creditors these days follow the IVA protocol. The equity release provision is also industry standard, and will be most likely modified into proposals by creditors at the meeting stage, even if it was not present in the first place.
I understand this now but from my point of view and following much research there are not many IP websites that mention this or the 6th year option. I was also concerned to read Michael's reply in this thread although as with everyone who has replied I appreciate the response. Is the 6th year option include/accepted in the iva's you propose?
I say that we will seek creditors views in the event that equity is available but cannot be raised. Based on current creditor attitude, this may result in a further year needing to be paid.
One thing that I don't do - which the protocol provides for - is index the property by 4% per annum and rely on that for the purposes of formulating the offer to creditors. This is barking mad in today's property marketplace, and can give false expectations to both debtor and creditors which may never be achieved.
The protocol is voluntary and optional. To suggest that a firm is better because they use it is not always correct - I adopted it in my firm because my proposals already covered 95% of the issues brought in when the protocol arrived. There are bits that I don't agree with - and we therefore make a specific disclosure about these to creditors by way of transparency.
Voluntary arrangements should be considered by IPs directly, and tailored to meet the individual requirements of each individual client. It is dangerous to churn things out on a "one size fits all" strategy.
Hi
Surely creditors will not seek a sale of a family home if equity can't be released ?
Surely the fact that the family home is safe in an IVA is a strong reason for debtors opting for the IVA solution in the first place ?
Regards
If there is equity in the property at the beginning of the IVA and the mortgage costs exceed the cost of a similar rented property it is not uncommon for certain creditors to demand an immediate sale. They therefore do not have to wait for 5 or 6 years to get the equity and also if the IVA fails and the debtor is made bankrupt, the equity has already been distributed to the IVA creditors.
In addition, many creditors sell their debts and the debt purchasers may not feel obliged to accept another year when they could have the house. Melanie mentions current creditor attitudes and it is a fair point. In five or six years will these attitudes have hardened and will debtors be obliged to sell or be made bankrupt? It may be fine for those whose IVAs were approved with no modification and no variation is required to extend the IVA, but those requiring a variation may be in for a shock.
