www.iva.co.uk

I posted a few weeks ago regarding my IVA proposal, and my biggest concern was that HSBC are my main creditor and I was offering only 28p in the pound.

Well it was my creditors meeting today, and all the votes are in...

HSBC said yes with just another £40 a month, which I feel I can manage, but is still well below their 40p in the pound minimum (about 33p I think), so I hope this gives others in that situation some encouragement! Unfortunately Egg and Capital One have said no, asking for another £100 a month. I am offering another £50 as this is the absolute maximum amount per month I feel I can maintain long term, and I'm waiting to hear back about their response to that. Surprised about HSBC though!

Keep your fingers crossed for me... I'm chewing all my fingernails off!

Interesting to see the outcome. Does Egg and capital one form more than 25% of the votes? And what % of vote does HSBC have. I suspect Egg and capital 1 are the bigger creditors

<<My motto:I am proud of black culture and is against racist bigotry>

Well I've just sat down and worked out the exact percentages...

HSBC 53%
Egg 39%
Capital One 6%
Other minor debts 2%

So basically I need Egg to agree, cos even if all the others say yes that's only 61%. I'm a nervous wreck waiting to hear!

Hi
Well that's good news about HSBC and could be the starts of an easing of their 40p hurdle rate.
I do wish that creditors would accept the IPs figures on income and expenditure without the need for this negotiating.
If £50 is all you can afford then stick with it.
Regards

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 am sticking at £50 more. I know that I would not be able to maintain any more than that long-term, and although the thought of bankruptcy horrifies me, I'd rather go bankrupt now than struggle to maintain an IVA payment I can't afford and end up going bankrupt anyway.

If I do end up becoming bankrupt, am I likely to have to pay a similar amount each month for 3 years, or are they not quite so strict on the income/expenditure?

Hi
They seem less strict and the maximum that you will pay will be 70% of your disposible income.
Have they said where the £100 saving should come from ?
Regards

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

They've said my shopping/household items allowance is too high at £170, and my petrol is too high at £100, and the allowance for pet care/vets bills is too high at £30. They may well be, but I've tried to factor in a very small amount for things like christmas, birthdays, and the very strong possibility that my rent may go up shortly.

Hi
Well if you take the CCCS guidelines of £140 for household and £20 for pets that is a £40 saving so they must feel that your petrol cost is only £40 a month.
Is it ?

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

No! I usually spend at LEAST £70-£80 a month on petrol, sometimes more. I have a disability that means I cannot walk very far so use my car for everything including frequent trips to and from hospital as well as work! It seems mad that they can decide how much I spend on petrol...

On account of your disability creditors should make an allowrance for that'extra'petrol cost. Does your creditor know about this?

<<My motto:I am proud of black culture and is against racist bigotry>

If I remember correctly if was stated in the proposal - there was additional allowance for prescriptions, which they've not queried. Still waiting for an answer - it's driving me nuts!

Hi
Well make sure you stick to your guns
Regards

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

A very interesting outcome, given that TIX told us a week or so ago that HSBC would not relax the 40p in the £ hurdle rate, unless under very strict circumstances - and as an IP I have experienced this a lot recently

Can you remind me you your IP firm is?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I'm using Clearstart. I haven't worked out exactly how much in the pound it is that HSBC have accepted, but given that my offer of £350 a month equated to 28p in the pound, and Clearstart worked out I'd need to pay £460 a month to meet HSBC's 40p in the pound hurdle (when I confronted them about that), I'd imagine that the £390 a month amount they've said they'd agree to would equate to somewhere in the region of 32-33p? I was extremely surprised at that decision, but equally surprised that both Egg and Capital One voted against the proposal, requesting an extra £100 a month (which would give them about 40p).

One of the expenditure items they disagreed with was my petrol usage, but my health problems mean that I drive EVERYWHERE! Every time I have to nip to the shop, to work and back, to the doctors, to hospital/physio/accupuncture/psychiatry appointments... so I'm not taking the mickey with that! But that does lead me onto another question... I've been told that I may be entitled to a disability living allowance, which would mean I may be elligible for a mobility allowance too which would take away my concerns about not having enough money should my car let me down or need replacing. The question is, if I receive the disability living allowance will it not just be taken by my creditors as additional income? I presume they couldn't take my mobility allowance as this would purely fund a mobility vehicle? I don't see any point in claiming a benefit from the taxpayers pot if it is not to actually assist me with my disability, but the mobility vehicle would be an enormous help to me.

If anyone has any experience/advice on this I'd be grateful, and I'll let you know the outcome as soon as I hear Egg/Capital One's decisions! (Another sleepless night ahead of me!).

Thanks for everyone's advice so far - I'm sure everyone agrees this site is an enormous support and a fantastic source of info and advice!

Hi
Your mobility allowance is for a vehicle etc and will not be taken by your creditors.You need to show it on your I+E form as income,balanced out by the cost of your vehicle on the expenditure side
Regards


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