OK, so my husband and I have approached two companies to work out IVA proposals for us. It seems that it is the best way forward and I am feeling a bit more positive about our future. The problem I have is this...the first company is Debtfixers, who are the company we are with through our current DMP. They have put a proposal together for us which works out at £270 a month over 6 years on our unsecured debts of approx £26K. In the proposal it states that we will be paying £148, so I presume the other £22 is fees to them? It also states that there will be no charge if the IVA proposal is rejected, which shouldnt happen hopefully as they have advised that our main creditor HSBC will accept offers as long as they are at least 40% of total debt, and they have assured this.
The second company have given us a figure of £250 over 5 years, which is quite a difference. I have explained the minimum of 40% towards HSBC and the lady assured me that this was taken into account, and that the amount was so much less because they charge less and 'are one of the cheapest IVA providers on the market' .
I am not sure what to do now. We have an appointment with our secured loan provider Welcome Finance on Monday to extend our loan term to reduce the payments down so that we can afford the IVA payments.
Any advice appreciated! Thanks. x
HSBC look to receive 34p to 40p dividend and if they hold over 25% of your total unsecured debt they could block it. Please indicate all your debts and list them here together with details of your net DI after making the secured loan re-payments. What is the equity in your property? From this information will be able to advise.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Cheapest is not always the best, and Martin Prigent of TiX has recently confirmed the me that the 40p in the £ hurdle rate definately is still in place.
I am at home and not in the office so I stand to be corrected, but I cannot remember a proposal that I have been involved with in the last 6 months being rejected due to the 40p HSBC hurdle rate.
There have been a number of cases where HSBC have accepted 25p to 30p whilst being the majority creditor, so I suppose each case is to be treated on its merits.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
He was adament that this only happens in exceptional circumstances. I would be very grateful if you could give me some idea of the number of your own cases where you have had supporting votes from HSBC, where the proposals offered less than 40p, as we are clearly seeing a two tier system in operation if what you are saying is true.
The last time this was raised on the forum a couple of weeks ago, Martin gave me his absolute assurance that the rate had not changed, so I will be wanting to take this up with him again.
This may or may not help and is not meant to prove one way or another but I can only reiterate that I can't remember a single failure in the last 6 months that I have been involved with due to the 40p hurdle rate.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
HSBC is really concerning me at the moment. If my maths is correct they hold 61% of out debt 27k with a total debt of 44-45k [not sure of exact figure.
It worries me they wont except a proposal from us, although when sorted i can imagine we could manage a pyment of £400 per month between us.
Cheers for that Mike - are you involved in all of the IVA cases, or do you have a team? Would be really interested to learn if there have been acceptances lower than 40p - because as a profession we need some clarity on this point to be able to deliver appropriate advice.
Melanie - will discuss this offline - ring me next week - but we are having no current problems with HSBC and dividends can fluctuate as Mike has shown on an independent post by a very happy client.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
No problems - go to bed - I have just finished answering my emails - now going for dinner soon.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
