www.iva.co.uk

We originally wanted to start an iva last year however as we needed to sell our house and rent to free up more cash each month we have only just got to this position to be able to propose one.
Over the last year we have kept our creditors at bay with token payments in a DMP however both my husband and I now have a CCJ registered against us and looking at our income and expenditure using the allowances set last year it appears that we could still not match the 40p in £ dividend required by HSBC.
Has anyone ever had a proposal of less than 40p in £ accepted where hsbc are the main creditor? If not do you know whether it is possible to propose an iva term of 72 months opposed to 60 month to meet this criteria?
Although it may appear that bankrupcy would be the best option we would ideally like to pay as much as possible back to the creditors and feel as though we have given the iva option a good go.

Hi Nico

I have successfully proposed IVAs to HSBC at a lower dividend than 40p in the £, but to ensure success that magic figure is best worked towards. If this means payments are over a slightly longer period, I would probably recommend that you look to do this to ensure certainty.

The actual proposal over 60 months would work out at 33p in £ opposed to the 42p in £ if over 752 months.

I have reached this figure by multiplying the monthly iva proposed payment by the term, taking off the IP fees and dividing this by the amount owed. Is this correct? Are the IP fees taken before the amount in the £ is calculated?

Your calculations are correct Nico - and I would think that it is worth a try as they can only say no!

If they do say no is this final or can we then propose to extend the payment term? As I understand variations can be made at the time of the creditors meeting - is this correct?

Melanie i was under the assumption there was no more hurdle rates with the new ive regulations agreed by banks early in the year?

Apart from HSBC who still stipulate a 40p in the £ rate so I am informed.