What if?

[vic74]

What are my options if IVA is refused, as mine is only offering 27p in the pound for 31,000 my meeting is next Thursday and i think im getting last minute Jitters, any advice[:(]

[MelanieGiles]

If the IVA is rejected, which is unlikely given that you are offering a reasonable dividend, then you could either offer a Debt Management Programme to your creditors or declare yourself bankrupt.

Do you have any of the more difficult creditors such as MBNA, Northern Rock or HSBC?

[debbiw]

Hi Vic74, If your IVA was rejected, then your options would be BR or DMP. Try not to worry, it is very common at this stage to get the "what ifs", but I'm sure that your IP would not put your best offer forward, thinking it would be rejected... hang in there, not long to go x

[vic74]

i have £800 with MBNA and 14000 with HSBC

[MelanieGiles]

HSBC are known to have a hurdle rate of 40p in the £, so if they represent more than 25% of your overall debts this may be of concern, however I have seen them accepting between 30p and 40p in the £ recently - having reviewed things on a case by case basis.

[vic74]

Hi Melanie two of my debts are hsbc one 3500 the other 8500 and the other Cahoot 7000 then abbey 7000, barclay card 700 mbna 800 and egg 4500, so not sure how i stand with that although i have discussed it and they say they have left room to increase if necessary and dont want to give too much upfront. how does that look in your opinion?

[MelanieGiles]

I don't like proposals where IPs have "left room to increase if necessary" and "don't want to give too much up front", although it is the creditor attitudes which have lead to some IP firms not putting forward the best offer.

HSBC do have 37% of the vote in your case, so will have an influential part to play and are very likely to seek increased payments or an extension of the time period perhaps to six years.

Great for your IP who has already built this into his/her proposal - and a nightmare for the rest of us who do the job properly, present actual expenditure and then also have to put up with increased payment requests!

Sorry did not turn your enquiry into a political statement - I am sure you are in safe hands and that an arrangement will eventually be accepted - but do let us know how you get on.