will I lose my caravan in an IVA

[MelanieGiles]

Well - I have been doing IVA's now for about 15 years, and in my book the debtor always made the best offer based upon his assets and ability to repay. In the old days, you even had to swear your statement of affairs on oath. Do you think that in your case Chris, you may have been badly advised?

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

[Oliver]

What you have to remember Chris is that not everyone who is unsuccessful in proposing an IVA goes Bankrupt and the creditors know this. Usually the main reason for someone proposing an IVA is that they strongly do not want to go bankrupt due to being a homeowner or not wanting to have the direct publicity involved etc... What this means is that often these people will opt for debt management plans rather than go Bankrupt if their IVA is unsuccessful. This will often mean a higher return for the creditor than they would have received in an IVA.

Best Regards
Oliver

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

[chris_]

Melanie,

Knowing what I have learn't recently with regards my IVA I wouldn't be surprised at all !!

Chris.

[ivoriva]

Oliver - this would only be the case if the debtor continued with the DMP for a very, very long time in most cases! DMP's might actually work if ALL creditors actually agreed to freeze interest & charges more willingly, and if they allowed a reasonable quailty of life for the debtor(considering in some cases it would be for life!). DMP's are a good tool, but generally not for those that have serious levels of debt - eventually such people will go bankrupt if forced onto a DMP and a IVA has been denied. So I dont see that logic from the creditors at all. And SIVA's will only take more people out of DMPs.

[Adam Davies]

Hi
I think statistics show that only three percent of declined IVAs result in Bankruprcy,so most turn into long winded and neverending debt management plans.If more declined IVAs turned into bankruptcy then banks etc would have a better attitude towards IVAs.
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

[Oliver]

Ivoriva, I completely agree that DMPs are not the best solution to solving the majority of large debt problems however, as Andy's statistics show, my point is that this does seem to have become the tactic of a number of creditors (Northern Rock etc...) of decling IVAs in the hope that people will enter into "unsuitable" DMPs rather than going Bankrupt.



Best Regards
Oliver

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

[ivoriva]

Is it that low? Well, maybe those stats are based on statistics long before this last year? I think there has been a change in creditors stance on IVA's over the last 8 months or so resulting in more failed IVA proposals - so lets see how things look on 2007 or 2008 stats. Personally I think they'll be more than 3%, and more from failed IVA's because they have set the bar too high. But this will probably be countered once SIVA's come into place.

Afterall it seems the government is actively encouraging a solution to the growing consumer debt problem and if the current options of DMP, IVA or BR was working then they wouldnt feel the need for change. With SIVA's obviously costs of administrating and proposing will drop, meaning better return for creditors. Meaning probably 50-80% of debt is paid back in many cases. So they would probably be happy for this rather than wait 10 or 15 years for a 100%.

[ivoriva]

I would also like to add, what happens after the statistic is recorded? For example, is the statistic just showing what happens when a IVA isnt accepted - IE the person then starts a DMP? In which case, if 6 months down the line the said person goes BR, it isnt recorded in the statistic?

[chris_]

Wow, This turned into a decent bit of debate.

I was making my points based on the time when I took out my IVA, but looking at the statistic Andy gave of 3% of failed IVA's resulting in bankruptcy, I can see why creditors' attitudes may have changed. Why settle for a low percentage IVA if you don't have to.

If I had any money left I would bet that those statistics are vastly different from those in 2001.

[ivoriva]

Well, the point Im trying to say is that statistic is probably in itself outdated, because it wont reflect the recent attitude of creditors. And that the statistic may not reflect the true outcome of what happens on a failed IVA proposal, as I would think it normal people wouldnt immediately file for BR. So it would depend on exactly what that statistic is recording, and when it was recorded.

[MelanieGiles]

The latest quartile figures released by the DTI show a slowing down of IVAs and an increase in bankruptcies. That 3% won't be 3% for long in my opinion.

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

[allen_r]

Meanwhile,back at the ranch!!!
Well I certainly opened up a can of worms there didn I.Anyway while this debate has been taking place I have solved my caravan problem,My daughter has taken over the van and the debt.But I do hate to be a party pooper so here is a fresh query.Today I was contacted by somebody from iva.co.uk,he wanted to help me set up my iva.I went through all my financial details with him and he began coming up with potential problems.One was the fact that several rears ago we sold our ex-council house on to our son,who we still live with.We obviously spent the proceeds,mostly settling debts,but the 'advisor' said we could have a problem,the reason being that,because our son is young and single he could not raise the full market value of the property so as it was all being kept in the family we sold the property for less than the market value and this could be a problem.The advisor then began stressing for me to go BR instead.He hung up several times to go and seek advice and his last problem was that because I am retired and my income is entirely from pensions then an iva may not be possible.If this is the case does it preclude people over 65 from doing an iva
Regards
Ray

[jamesfalla]

I totally agree with Andy's point here. We seem to be in a situation where many creditors are of the opinion that debtors will just not dare to declare themsleves bankrupt. In that environment, creditors make what might be seen as unreasonable demands in the knowledge that if they are not met, the debtor will just roll over and turn to a DMP.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[scaredkez]

allen i would be concerned if you go BR the OR may look at the house as being sold on under market value too! and could persue that also, how long ago did you sell it to him? he then also may look at the caravan depending on how your daughter has took over it, he may take the stance that you were trying to dispose of assets before BR, someone correct me if i am wrong, i think you would have to be careful.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[Sadsack]

I am with James on this one - I would not be very comfortable declaring myself BR or anyone else doing it for me. I would rather just sit back, bite the bullet and pay whatever I have to than do that. It is a struggle and it really weighs down on me, but at the end of the day, I don't particularly like being at "statistic". Perhaps the creditors need to go on a training course in "Dealing with IVA's vs Bankruptcy and The Long Term Effects".

Sue