Hi again. I have a question about IVA. I understood that creditors wanted around 20 pence for every pound owed. I got an estimate of around 8 pence per pound. Is this right. It sounds quite low. Im a self employed sole trader.I dont want to apply for an IVA, and get rejected. What should i do?
Hi and welcome. If that is the best dividend you can offer then you may be ok.
What company are you using?
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
Hi Debbie, I can only echo what Jan has said above. If your IP has proposed that only 8p is available then so be it. We are only paying back 18p and I know there have been some dividends lower than yours before.
Just go with it and see what happens.
Have to agree I thought mine was quite low when it was proposed, I think mine was 16p, I was also a self employed sole trader, however 6 months in I have already increased my payments so just cos a dividend is low at proposal doesn't mean you won't pay more back. Also companies don't do all that work if they don't believe it would be accepted. Obviously there is never a guarantee having said that but I would air your concerns to them, I'm sure they will reassure you.
"It is never too late to be what you might have been"
Fiona
Most creditors nowadays look more at the reasonableness of the proposal rather than a specific minimum dividend. After all in most cases the return to creditors in an IVA is better than in bankruptcy where the costs are higher and in most cases creditors dont receive a penny back.
like everyone else says - nothing is impossible at the minute. Ours went through at 11p in pound and we were petrified it would be rejected, even though it was the best we could offer.
It used to be the case that you had to offer creditors at least 25p in the pound to have a chance of getting an IVA accepted. However this rule is now gone and the return to the creditors is looked at on a case by case basis. If your proposal of 8p is the best offer you can make and is clearly better than the return your creditors would get in bankruptcy, then there is no reason that it will not be accepted.
Thankyou for your replies. Feel bit better now. Just hope the IVA goes through! If it wasnt accepted- What can i do next. Can i apply for another IVA? Dont really want to go bankrupt!
Hopefully it will be accepted - if not then you can always do a debt management plan. May take longer but you won't have to go bankrupt.
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
8p in the £ is quite low - but if you are making your best offer then this should be respected and accepted by creditors - especially if the alternative is bankruptcy where they can get nothing. I am finding that some creditors are seeking to extend low dividend offers from five to six years, but this may still represent the better option to you in the long run.
Best of luck with the creditors meeting and do let us know how you get on. You can apply for another IVA - but there would be no point if you were making best offer in the first place.
