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Hi,
Now that IVA's are increasingly popular I read that Banks etc are refusing more and more IVA's? Is this true?
Thanks

Hi mye and welcome to the forum

Not in my experience, although the criteria that banks are expecting to be produced in terms of quality of presentation are perhaps somewhat higher, and they are concerned that people are choosing the right decision to deal with their financial difficulties rather than simply using the procedure to avoid paying their debts - quite rightly so in my opinion.

An IVA is an appropriate procedure for an individual who can no longer afford to repay their debts as they contractually fall due, but nevertheless feels a strong degree of responsibility to their creditors to effect a maximum repayment.

From the creditors point of view, they will be prepared to accept proposals which afford a better return than would have been available under bankruptcy proceedings, but they will not entertain proposals where they feel their customer can afford to continue paying.

The fact that there may be more proposals being rejected could be the result of creditors being more careful to read the proposals which are placed in front of them.

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

Quote " the criteria that banks are expecting to be produced in terms of quality of presentation are perhaps somewhat higher"

In my opinion this is going to b more and more a big part of acceptanc or not.
The quality of your proposal and IP will become one of the biggest factors in your IVA being accepted or not.
"Factory" producers of IVAs will either have to sharpen up their act or have a larger rejection rate as banks become firmer.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

I don't think it will be a bad thing if the IVA 'factories' find that their unrealistic proposals are no longer being accepted. The amount of people who write on this forum who have had bad experiences with them is scary.

Onwards and upwards!!!

View my blog at http://skippy13.blogs.iva.co.uk/

thats right Skippy, they are offering dreams to people, 85% debt wiped out, but htey do not tell people the true cost.

Personally I think the important thing will be the quality of the proposal being put forward by the IP ,picking up on the same theme echoed by Andy Davie. I have posted on this before but it really needs to be thought about. Would you want one of the "new kids on the block" putting something forward that is so potentially critical to your financial future? Most of the companies you see advertising in the press and tv, I had never heard of 5 or 10 years ago and I have been in this industry quite a while. If it were me I would select somebody who really does know what they are doing rather than someone who`s only been here a tomato season and is now claiming to be the answer to our problems. Why do you think they have suddenly materialised, makes you wonder doesn`t it?-Tony

My only advice to anyone applying for an IVA, is that you try to use a good IP, many post on this site. Also you make your proposal the best you can, this will give you a better chance of having it excepted and giving you a chance to stop worrying about your debt. You see lots of TV adverts promising to wipe off 75% of your debt, I just thinks banks are now trying very hard to get the best return they can.

Cheers, Mark.

View my IVA story blog at: http://sopty.blogs.iva.co.uk

Hi
Mark is right, banks must get the best return that they can and this is where the best advice must always be given by an IVA provider.If an IVA is unlikely to be accepted then say so,we do not want proposals put before banks that are unrealistic and doomed to fail,it will have an adverse effect on genuine proposals.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp