www.iva.co.uk

Just thought for information I would post that Debtmatters failed my IVA , following failure at my variation meeting failing , even though only 1 person voted at my meeting to fail the IVA!

Still haven't recieved the termination agreement and on the IVA register it is still showing as being in place!

Have recieved letters from Nationwide though stating that my IVA has failed and they want to come to an agreement with me, they didn't talk of Bankruptcy either.

My next step is looking at a DMP, so I will keep you posted!

Chris

Hi Chris

Sorry to hear that the IVA hasn't worked for you - but a pity that only 1 crditor could be bothered to work with you and the IVA company.

Hope you explore the other 2 options and get all the information before you take the leap

Good luck

In my experience, Debtmatters are not the fastest company when it comes to closing IVA's down.

What makes you think a DMP is the next step? have you considered bankruptcy ?

Hi Carl, I have considered Bankruptcy, just at present would , if possible go down the DMP route.

HI Chris,

I have just been reading through your previous posts and i note that your debts are £29,000 of which you have a disposable income of £240, and that you were proposing a variation to reduce your payments but also extend the arrangment by another 2 years to make sure the agreed dividend was met... Is this correct ?

Which creditor voted, and was there a reason for the rejection, considering you were offering the same dividend just over a long period of time i find this very strange.

Based on a payment of £240 and debts of £29,000 it is going to take you around 11 years (assuming interest and charges stopped) were as if you were to propose a second IVA you could potentially reach a dividend of 33p in £ (Based on £5k fees)

Why did you need to reduce your payment, was there a change in circumstances ?

Hi Carl, originally my IVA was et at 350.00 a month returning a dividend of 45p. I then had issues with my partner and had health issues which meant I had to reduce my hours, from full time to 30hrs.

At my variation meeting 1 voted , Link Financial, the debt with them totalled 3,000. No one else voted. When my IVA was failed, Nationwide voted, who own just over 20,000 of my debt but only the loan department voted as it said their interest totalled 10,000.

I would have liked to retry an IVA , but didn't think it was possible.

I have very little faith in Debtmatters, and feel somewhat let down by them.

Thanks for you support though Carl.

Chris

If your original IVA has completely failed, there is nothing to stop you proposing another one, but clearly creditor support will have to be ascertained and the reasons for the failure of the first IVA will have to be clearly explained.

I have occasionally put forward second IVAs, but creditors will take a lot of convicing that you have put your problems behind you and are financially back on track.

Hi Chris
If you were to propose a second IVA there would need to be clear reasons given as to why the first one failed and why it can realistically be expected that the second one will work.

As Melanie has indicated, it would mean your new IP having a chat with the creditor reps. I assume that Link would vote to reject but based upon what you say there seems to be no outright reason why proper creditor support would not be achieved, so long as the second proposal can be seen to have been properly thought through..

Hope this helps. By the way, how long was your first IVA running?

Ian

Hi Ian the IVA was running for approxamately 9 months and then on advice from Debtmatters who said it was going to fail
,I stopped paying in contributions. I had pretty good reasons for being unable to pay 350.00 a month as I had an MI and had on the advice of my Occ health department had to reduce my hours from 37.5 to 30 hrs. This meant I lost 6k a year, I tried to work with Debtmatters but they really didn't seem bothered and I think the fact only 1 creditor voted at both the Variation meeting and the termination meeting supported this. It actually meant hardly anything was paid off my debts as it all went on Fee's. I have never spoken with my IP as he was never available and he never , ever signed a letter , it was always pp'd.

I can fully understand why creditors would now not trust me and thats why I was going to choose a DMP as opposed to trying an IVA.

1very ersting point though is that when my IVA was set up, they never wanted any information and in the document made blantant statements that weren't true , like Ihad a Ford KA which I didn't and they set it up all over the phone without even doing an Income and expenditure with me, so how they ever came up with 350.00 is beyond me, but at the time it was far less than I was paying in Debt and foolishly I just snapped their hands off.

Chris

Hi Chris

I wouldn't necessarily agree with your statement that your creditors would not trust you. There are specific disclosure requirements in the proposal and nominees report concerning second IVAs but, from what you say, putting a plausible explanation of your position should not be too difficult. However, if you do decide to attempt another IVA it will need to be shown to work and so you need to set about it a different way.

You lose absolutely nothing by asking another IP to take a look at your situation. Ideally, the IP or a Senior member of his staff who will meet you (and I don't mean someone who will send a rep out). Before you instruct anyone make sure you are being told what you need to know, rather than what you might want to hear.

If you are not asked for full and up to date creditors details, a schedule of assets, payslips and bank statements (to verify your income and expenditure and thus your contribution) then beware. Also, ensure you are being taken through the pros and cons of each procedure (although I would suggest there is no need to tell you that!). From your figures I think you have a fighting chance although that presupposes no deal-breakers emerge. If after a full discussion you are then told that your proper option is something other than an IVA then at least you can say you've given it your best shot.

Hope this helps

Ian

Thanks Ian, what does 'No deal brokers mean'??

May be a daft Question - If so sorry!

Chris

Sorry for the jargon - it's "deal-breakers" i.e that there is something or some condition which makes it impossible for an agreement to be reached. Examples in your type of case could be incurring further credit post IVA or persistent failure to cooperate with the Supervisor.

Hope this helps Chris

Ian

Hi Ian , yes thanks , it has been a big help.

I certainly haven't obtained any more credit, not even sure if I could, and anyway wouldn't want to anyway.

What would your advice be then.

Should I try again for a second IVA and if that fails then apply for a DMP - Would that make sense??

Many Thanks again

Chris

You have nothing to loose by considering a second IVA and i would suggest you contacted an IP to discuss your case in detail that would then be able to accurately advise the best way forward.

The other options you can consider are a DMP which as we discussed earlier would probably take you around 11 years to repay your debts or Bankruptcy which you have already expressed a desire to avoid if possible.

A second IVA does seem like a sensible option for you to deal with these debts.