what happens if the creditors refuse IVA propsals?

[zoe]

what happens if the creditors refuse IVA propsals?

[MelanieGiles]

Hi Zoe

Well this means that your IVA will not be accepted and you can therefore do any of the following:-

1 Represent the IVA. This should only be done if there are major changes to make, to make it appear more attractive for creditors. Creditors generally do not like represented proposals, so ensure that your chosen IP is confident of success before you try this.

2 Declare yourself bankrupt. This involves an application in your local County Court at a cost of £480.

3 Enter into a debt management programme. You can either do this yourself or appoint a debt management company to act on your behalf. If you choose the latter, they will charge a fee out of your contributions, and therefore the overall repayment period will be proportionally extended.

4 Do nothing, but wait to see what actions the creditors take. I would not recommend this to anyone, as it generally just makes your debt problems worsen.


But think positively. In my practice we get over 98% of our IVA proposals accepted, so the odds are in your favour!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Good morning Zoe,


I agree with Melanie that you need to be positive. Positive thinking will let you do everything better than negative thinking will.


To answer your question, if your iva is rejected then you will have to come to an informal arrangement with you creditors to repay your debts or declare yourself bankrupt. The other option as Melanie rightly says is do nothing, but wait to see what actions the creditors take.


Kind regards,

Julia


For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[zoe]

Hi there
I do worry because i got some of my debt gambling.
I have been told this will not stop me getting an IVA, however MBNA have advised me that it will as only recently proposed. My major creditor is Northern Rock and i am in the process of writing to them to see if can come to arrangement in the meantime, however i have read conflicting stories on here, some say to leave it and notify them late as poss and some say to tell them now - what do i do?

[zoe]

Hi there
I do worry because i got some of my debt gambling.
I have been told this will not stop me getting an IVA, however MBNA have advised me that it will as only recently proposed. My major creditor is Northern Rock and i am in the process of writing to them to see if can come to arrangement in the meantime, however i have read conflicting stories on here, some say to leave it and notify them late as poss and some say to tell them now - what do i do?

[Oliver]

The people whom you are speaking to at MBNA have absolutely no authority to say that MBNA will either accept or reject your proposal. These people are employed by MBNA to try and extract as much money from you as possible and they are using questionable tactics to achieve this. MBNA like many other creditors employ specific companies to vote on any IVA proposals so the people you are speaking to are NOT going to have any influence in voting on your case.

I would advise that the best thing to do is contact Northern Rock and explain that you are not able to meet their payment requirement and try and offer a revised affordable payment. There is no need for you to mention to Northern Rock that you are proposing an IVA until your debt adviser has informed you that you can stop paying your creditors.


Best Regards
Oliver

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

[zoe]

Thanks Oliver
I bet you are getting fed up with me. I am the worlds biggest worrier!.
I have had a income/expenditure plan and pro rate payments drawn up for me which i will be sending to MBNA and Northern Rock.
I will begoing through IVA but need to get health sorted.
I will be dealing with Thomas Charles once this is sorted i am hoping for February.

[Oliver]

Not all Zoe, I'm happy to help and also am very confident that you will be able to find a solution to this.

Health is most important, money can be earned, spent / lost, and then earned again, but sadly the same can't be said for your health.

We look forward to hearing from you in February. If you'd like you can go on our website and read client reviews for all out Debt Consultants, you can then pick which one you would like to help you. Try not to laugh too much at their pictures and never judge a book by its cover, ha ha!

All the best Zoe.

Oliver

[zoe]

I will do.
Thanks for being so understanding Oliver, i know its your Job but you have really helped!
Zoe

[Oliver]

You are more than welcome. I am glad I could help.



Best Regards
Oliver

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

[zoe]

Just wait you may have more questions tomorrow!

Thanks again Zoe

[Oliver]

No problems, feel free to fire away as and when you have them!!!




Best Regards
Oliver

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