What if my IVA is rejected

[snoogle]

Hi All

Am just seeking a bit of reassurance so sorry if I am bit rambling but this has been to date the most stressful 6 weeks of my life! My creditors meeting is on 19th Feb - I owe approx 68k to 12 creditors and am offering to pay £0.40 in the pound in an IVA. (I have no assets really) Bankruptcy would offer them £0.03. Am slightly concerned as about 15% of that debt was run up in the last six months in an ill advised attempt to keep up with payments and am scared they will reject because of this combined with a possible no vote from Liverpool Victoria who have another 10% of debt.

If I go bankrupt I will more than likely lose my job which is what I want to avoid at all costs so my question is in your experience would the creditors accept a debt mgt plan should the IVA fail? I would have offered them this anyway as I am just seeking to lower my repayments to a realistic level not get out of what I owe but I was advised an IVA was best.

Please advise

Stressed!! Thanks

[MelanieGiles]

Hi snoogle and welcome to the forum

Your IVA offer at 40p in the £ is a good one and is above the average return for IVAs generally. Liverpool Victoria can be a difficult creditor, in that they like to see returns of 50p in the £ generally, however they are only 10% of the overall list and could be outvoted if they reject. Make sure your IP makes all efforts to get in as many votes as he/she can on the day in the event of a LV rejection - and insist the meeting is adjourned if there are creditors who have not voted as they may need a bit more time.

Your IP should have already clearly explained to creditors in the proposal about the possibility of you losing your job, so do make sure that they continue to stress this if they run into difficulties. As you are already prepared to enter into a DMP, then you have nothing to worry about, as rest assured the creditors would rather that than see you going bankrupt where they get 3p if they are lucky or more likely nothing. Creditors do not like bankruptcies!

Stay positive, that is a good offer and I would already be putting the champagne in the ice-box if I were you!

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

[neverending]

Snoogle
You are feeling exactly how we all felt waiting for the meeting.Many people have posted with the same concerns as you.You have really done all that you can so try and relax,leave it to your IP,they will want it to be agreed as much as you do.
Phone them on the morning of the "meeting" as they will be able to give you a good idea of how things will go because voting is all done by post.[do not imagine a representative from each of your creditors sitting around a table discussing your case.....it doesn,t happen]

[dso]

Hi snoogle,
I know the feeling, we've all been there before,stay cool and calm,
you can only try and l'm sure there is a solution out there for you.
l can't see any reason why it shouldn't go through.All the best!
dso.

[snoogle]

Hi Melanie and All

Thanks for the advice and support - is appreciated. My fingers are crossed!