www.iva.co.uk

Hi

I've just been notified that two of my creditors have rejected my proposal - one of which apparently always rejects IVA's - something that Ive just found out through the solicitors handling my case.

The main rejector, which is the bulk of the debt, says that I should be using a debt management programme not an IVA, and they are now asking for access to my spouse's outgoings and salary, although this is a single IVA ie mine.

I have also just been notified that creditors are being particularly picky with IVAs at the moment, reading things into fine detail and requiring more information than previously due to the banks loosing so much money at the moment, and the credit crunch which I was not informed about in the first place.

I also received (to my joy) a letter from one of my creditors a few days ago saying that they had received a letter saying my IVA had been approved. I then receive a call this morning from my solictors saying that I have had 2 rejections.

Has anyone heard of anything similar and can anyone help me please?
Thanks so much
Alan

Hi alan and welcome to the forum.
When is the actual date of the iva meeting. The rejection or approval will be determined by the percentage of votes that you get. You need 75% acceptance. Who has the bulk of the debt is it mbna. I am sure I havent been much help, but wish you well.
Speak to your insolvency practioner and ask for some clarity and advice on what to do now.

Ang

Hi Alan, and welcome to the forum.

Have you actually had your creditors meeting? I only ask because it seems that you learned of an IVA acceptance from one of your creditors, not your IP, and I have never heard of that before.

Your wifes income will be taken into account to estimate payments as she is obviously contributing to the household expenses, so this could mean that your payments could be higher.

Alan who did you use as an Insolvency practitioner to put forward your IVA? Wasnt your spouse's income taken into account to start with to work out your income and expenditure??

I would agree with what the others have said, its down to your IP provider to inform you of the outcome of the creditors meeting. MBNA also sprung to mind, too, they prefer to make you pay the whole debt off in a DMP or make seperate arrangements with customers, this doesnt mean you cant get an agreement though.

Who are you with and has everything been properly explained?

Thanks so much for your replies, very grateful.
Yes I have had my creditors meeting about 2 weeks ago now.
Yes I heard of the 'acceptance' through a creditor, not my IP.

We were asked to include my spouses salary in the expenditure report to the IP, but I dont believe that this was forwarded on to the creditors - we were advised not to as this is my IVA, why should it be made available to creditors - this is not a joint IVA.

The income and expenditure report provided was based on my sole contributions towards the household. (I cant afford to pay mortgage etc.)

Im awfully stressed out and am continuing to suffer depression - It pains me that this will affect my wife as the bulk of this debt was accumulated before I married let alone met her. We were told that she would not be involved in this whatsover as this is a single IVA.

Hi Alan,

If you're creditors meeting was 2 weeks ago - is it only now the IP has contacted you? Which company are you with?

If you could prove that your wife had not benefited from your debts then her income would not have to be included. However, this would be hard to prove if you were married / living together when you ran up any credit. In that case her income would be taken into consideration, as mine is with my hubby's IVA.

What does your IP suggest you do next?

Hi thanks for the help.
My IP is writing an email to the main creditor to negotiate and has told me they will contact me by the end of the day to keep me updated.
Ive been told if my IVA gets rejected, the only other options are a debt management programme or bankruptsy.
I cant quite believe it as this an IVA is what I was recommended by my IP - they said that the IVA would be the best option for me, as did the Government Debt Helpline.

I think your wifes income is taken into consideration for shared expenditures only. I am sure that you are very stressed and can well understand that.

Who are you using? and has your IVA actually been approved or are they wanting to make modifications based on your wifes income?

Hi Im a bit reluctant to say who Im using, only you never know who is reading these posts - sorry, I dont want to jeopardise anything. i hope you understand. ;(

All my other creditors accepted my proposal.I have had 2 rejections - I am missing that 27% to make it up to the 75%. I have been told that I can only get IVA acceptance if the main creditor accepts my IVA. Confusing. I thought only some had to accept, others to reject?

Looks like if this afternoons negotiation isnt successful they will ask to see a breakdown of household expenditure. Then I may have to pay more - I guess this is what you are referring to my modifications?

Try not to worry too much just now,the fact that your IP is talking to your main creditor means there is still hope.
Is MBNA the main creditor??

Alan - haven't they already seen a breakdown of expenditure? Did you complete an income & expenditure form?

I don't think naming your IP company will harm your chances -quite the opposite. Some companies give advice on here and maybe able to help.

Fingers crossed for you x

Hi

Many thanks for your posting.

Yes they have seen a breakdown of my expenditure but the creditor is now asking to see receipts/ proof of payments within that section. ie they want to see proof that I pay £140 to the council tax each month etc.

I did complete that form over the phone with my IP, and signed a document declaring that that is how much I contribute to the household each month.

Sit tight Alan - hopefully Melanie or one of the other experts will be along to advise.

We are with Accuma but others with Varden Nuttall will give their experiences, I'm sure.

Thank you, you have been of great help.
I am sitting here projecting positive thoughts to my IP.