www.iva.co.uk

Hi, This is my first post although I've been reading the forum for the last three months or so. I have £95000 of debt and am thinking in going into an IVA. I'd like to know how much the minimum payment would be for the IVA to work. One of my creditors is HSBC.

Thanks

Well depending on who your other creditors are and how much is owed to HSBC you could be looking at anywhere from £500 (based on a return of c25% return) - £725 (based on c40% return (HSBC min criteria)) per month.

Remember though that in an IVA you will always have to pay your creditors back to the best of your ability regardless of the minimum return required. So in short if you can afford to pay more you will have to.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi London35

How much do you owe HSBC? And how much disposable income do you currently feel that you could afford to fund an IVA. Also are you a property owner with equity? If this is the case, creditors will also expect you to contribute something from this probably during the final year.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I own £ 22.000 to HSBC. I don't own a property. And my disposable income would be around £600, I can't afford the £750.

Thanks

HSBC can be outvoted, so long as your IP gets in most of the other votes, so your disposable income of £600 will probably work if you feel that you would like to try an IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Agree with Mel, with a bit of hard work from your IP in securing other creditor votes you could potential out vote HSBC.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Could you tell me what other creditors -apart from HSBC- expect more than the 25c return? Thanks for the help

Of course all creditors will tell you that every case is judged on it's own personal merits but there do seem to be some common trends within the industry and I will make a stab at listing some. Anyone please add to the list as I will surely forget some glaring ones.


Northern Rock can sometimes demand more, and will generally look for a return of 40-45%, but are willing to accept IVAs for lower than this with cases judged on their own merits.

Student Loans will often look for a higher dividend but may be restricted from being included in the IVA depending on when they were taken out.

Blackhorse can sometimes require a higher dividend but again this is judged by them on the amount of the loan, age of the loan and individual merits of the case.

I have heard that MBNA have recently taken to rejecting some IVA proposals but have not as yet made it clear what their minimum dividend requirements are. We have a good track record with MBNA though and found them willing to accept IVA proposals from our clients.

Liverpool Victoria seem to look for a minimum of 50% return on the money they have lent.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

I have to say MBNA are very difficult as they voted against my IVA which was owing 6,000 and they were getting 70p in the pound!!

Did your IP get any feedback from MBNA as to why they rejected?

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

MBNA are not necessarily being difficult

Some of the reasons that MBNA are rejecting IVA's are where the debtor ...

Has only recently taken out a loan; or
Is currently making the minimum payments on the credit card; or
Has not contacted them directly to discuss the problem.

You may offer something along the lines of 70p in the £ but if you have not made an effort to contact them directly yourself, then they do not like it when a proposal crosses their desks.
I believe this to be because they have their own kind of DMP which they would prefer is used.

Hi Cybus
My husband and I have interlocking iva's I understand what you are saying but in our case, the cards with mbna had been held the same length of time , we did not contact them and they voted yes to my husbands who owed more and no to mine . Both only had minimum payments made on them and both had not defaulted at the point of the iva proposal. Rather confusing as to why they said no to mine and yes to his.

Ang

Cybus
MBNA must be sensible enough to know that just because minimum payments are made it doesn,t mean that all is well.Many people,including myself,paid right on the button upto the IVA proposal but it was done by using credit to pay credit.
Surely MBNA need to convey their concerns and conditions to IPs so that time is not wasted in proposing an unrealistic IVA.
Regards
reagrds

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

I agree with what you are saying. I am just relating a couple of experiences where they have been encountered.
IP's, are currently working with the British Banker's Association in development of standards.
Personally I'd like to see all creditors and their representatives locked together in a room and not allowed to come out until such a time they can agree on criteria across the board [}:)]. However, I suspect it is not going to be anywhere near as simple as that.