wondering if the experts could give me an opinion

[rupert.r]

Hi,just wondering if the experts could give me an opinion on the following situation. I'm considering an IVA but am wondering whether there's likely to be any real chance of negotiating a repayment level I can afford.

My overall debt is approx £70,000, spread between various creditors but unfortunately the largest amount of the debt is owed to HSBC, being approx £28,000, and I'm aware of their insistence on a dividend of 40p in the pound. I have been informed that the minimum monthly repayment I'd be looking at is approx £580. Realistically I only have £500 to spare at the moment.

Is there anyway such an offer could be negotiated with HSBC, if for example the repayment period of the IVA were to be extended to, say, 6 years. I'd really value your opinion on this. Am thinking of proceeding with a company referred by the CCCS. Last 2 years have been on a DMP with Payplan. Many thanks

[catullus]

Hi rupert,

In the last two or three weeks there has been an indication that HSBC are starting to drop the 40% requirement.

It's only selective at the moment, otherwise they would be swamped, and seems to apply to good proposals where the return is between 30%-40% +. Hopefully your IP will be aware of this development and will be prepared to put a proposal forward along these lines, which from the figures you've provided should be possible.

[Adam Davies]

Hi
Clearstart seem to have a unique relationship with HSBC[voting administrated by TIX] and have recently had an IVA agreed at 30p[ish]
Alternatively look at changing your mortgage[?] to an interest only one and this may increase your disposible by the amount needed.
Try contacting Clearstart and let us know how you get on
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[catullus]

Not just Clearstart Andy !!

[Adam Davies]

Hi
Well that's good news,but I've not heard of any others !! maybe you can enlighten me Catullus ??
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

And me! I specifically spoke to TIX about this this week and was categorically told that the 40p hurdle rate remains. Would be very keen to know where your information comes from, so that I can follow this up.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[catullus]

Two through this week along the lines of my post.

If you think about it Melanie, they are hardly likely to broadcast it, because they would be swamped by all those people languishing in DMP's, so it's likely to be introduced very gradually and don't be surprised if you don't get them all through.

In addition, I've noticed the odd erratic vote from TIX (not putting in certain clauses) so these could just be an aberation, but I'm hoping that the hurdle is coming down.

[MelanieGiles]

I will take this up with TIX directly for further clarification, and to try and understand their current criteria so that I and others can continue to give best advice to our clients about their options.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
Surely you either have a hurdle rate or not !!!

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[catullus]

Andy

There must be 1000's of people who have put off an IVA because they don't meet HSBC's well publicised hurdle rate, and as I said, are probably languishing in DMP's.

If you were HSBC, do you think that you would suddenly announce a relaxation of the hurdle? I wouldn't.

And for that reason, Melanie, I don't think you'll get much change out of TIX!

[Cybus]

At the risk of being controversial, I will briefly summarise what I have seen elsewhere on the www

It was reported that Debt Free Direct bought Clear Start earlier this year for £10.9m

Clear Start was formed originally by a chap who during the last five years was interestingly a director of, amongst others, TiX. He also was a founder of the TDX Group of which TiX is an integral part

This very same fellow has also recently been appointed to the board of Debt Free Direct, who I think are one of, if not the, largest single IVA provider in the country.

Whilst the new board member of DFD has now resigned his directorships in TiX, it is not clear if he has relinquished the 32% shareholding he has in TDX Group.

If he retains that shareholding, then is there a conflict of interest arising?

I realise this is of little relevance to the opening post, but it perhaps explains in some way the unique relationship Andy refers to.

I would also be intrigued to know more about the apparent indication that HSBC are lowering the 40p in the £ requirement in certain instances and exactly what criteria are being applied in those instances.

Tell it like it is.

[Adam Davies]

Your right on the button Cybus,my thoughts and concerns exactly.
Catullus...if you have a policy,you have a policy and people respect and get used to that.
If you allow a lapse then you effectively open the floodgates and weaken your credibility.
If I were HSBC[????] I would stick to my guns or announce the removal of the hurdle.What I wouldn,t do is open the door now and again to a select few
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[catullus]

Well, you may be right Andy.

I was aware of the "connection" that Cybus referred to but my own experience points to the fact that it's not a select few. Unless a very small shareholding in DFD, which has absolutely tanked, puts me in that category!

TIX are on record, as you know, of saying that HSBC were reviewing their stance on the hurdle and a time will come when they will have to relax it but I doubt that there will be a fanfare of trumpets when it happens because every debt mangement company in the country will leap to its book and start referring candidates to IP's.

That would cause a spike in HSBC's bad debt provision which they certainly don't want at the moment.

So, again, I say that it will be brought in gradually and at first will be reserved for those proposals that relate to debtors who simply will never be able to reach the threshhold, have clearly made efforts to maximise their offer and whose promised return is probably 30%+.

Then again, my recent experiences may just be an example of erratic TIX voting which I have also seen recently.

[Adam Davies]

Interesting when we talk of bad debt provision.
NR have a bad debt provision far better than the industry average,but is it real ?
You can paint over rust for so long but eventually it comes through an this is how HSBC and NR bad debts are.By denying insolvent debtors a valid solution and keeping them in a DMP you are just delaying the inevitable.
The next big story will be when the buyer of NR looks at the books and realises that the bad debt provision should be far worse than reported.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[rupert.r]

Really appreciate all the comments and the discussion makes for interesting reading! But in view of all this what would your recommendations be at the moment? To continue treading water in a DMP until/if HSBC climb down? Or to give it a go anyway? And who are Clearstart and would they be my best option in this case or doesn't it really matter? Rupert