Is 39.01p in the £ a good return for creditors?

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keall
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by keall » Mon Aug 20, 2018 7:01 am
is 39.01p in the £ a good return for creditors? is this the usual amount on a £10,500 Iva at £90 per month? if so why was my iva rejected.
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Lisa Thomas
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by Lisa Thomas » Mon Aug 20, 2018 8:44 am
Yes it is an attractive dividend but the figures don't quite seem to stack up.

Where are the assets coming from to fund the dividend and there doesn't seem to be much allowance for any costs.

Your IP firm should be able to tell you why creditors rejected your IVA proposals.
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Foggy
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by Foggy » Mon Aug 20, 2018 8:52 am
After conservative costs I would say your creditors stand to get around £3.5k from those payments over 5 years, so the dividend looks to be around the 30-odd percent mark, which, on the face of it , is a healthy dividend. But, on such a small debt,the creditors administration costs over the term will eat into that and they will get far less back against the debt. It costs them much the same to process a large debt as a small one.

So, my guess would be that they feel the return is too little, which, as Lisa says, should be in the Chairman's Report of the meeting and your IP should be able to tell you right away.

You could counter this by offering an extra 12 months payments, maybe. If £90 is an accurate reflection of your disposable income it would be folly to try to increase that, as you will find it difficult, if mot impossible, to manage.
keall
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by keall » Mon Aug 20, 2018 9:07 am
Lisa Thomas wrote:
Yes it is an attractive dividend but the figures don't quite seem to stack up.

Where are the assets coming from to fund the dividend and there doesn't seem to be much allowance for any costs.

Your IP firm should be able to tell you why creditors rejected your IVA proposals.

so if the monthly payment is £90 fo example creditors get 40p in £ where does the other 60p go,does that not cover the costs? the figures were based on my income and i&e
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kallis3
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by kallis3 » Mon Aug 20, 2018 9:10 am
Don't forget you have to factor in fees as well.
keall
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by keall » Mon Aug 20, 2018 9:23 am
ok guys thanx...im going to see what the report says...
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Foggy
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by Foggy » Mon Aug 20, 2018 9:25 am
keall wrote:
Lisa Thomas wrote:
Yes it is an attractive dividend but the figures don't quite seem to stack up.

Where are the assets coming from to fund the dividend and there doesn't seem to be much allowance for any costs.

Your IP firm should be able to tell you why creditors rejected your IVA proposals.

so if the monthly payment is £90 fo example creditors get 40p in £ where does the other 60p go,does that not cover the costs? the figures were based on my income and i&e


At £90 per month over 5 years, you will pay in £5,400. Of that at least £1000 (probably more) will be nominees fees (for preparing, drawing up and presenting the proposal). Around 15% will be Supervisors fees (for ongoing work, dealing with payments etc). So that's another £610 gone. Then there will be disbursements (phone calls, postage, etc).
keall
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by keall » Mon Aug 20, 2018 10:31 am
so this "chairmans report" is it generated everytime a creditors meeting is held or only when the outcome is rejected/accepted. Ive been in touch with cf and they said it will be available after my meeting on the 4th sept.
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Foggy
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by Foggy » Mon Aug 20, 2018 11:07 am
keall wrote:
so this "chairmans report" is it generated everytime a creditors meeting is held or only when the outcome is rejected/accepted. Ive been in touch with cf and they said it will be available after my meeting on the 4th sept.


Generated after each meeting ... it is a report on what was said and done (sort of minutes of the meeting plus) and any alterations agreed in the report over-ride the proposal in implementation.
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Lisa Thomas
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by Lisa Thomas » Mon Aug 20, 2018 1:48 pm
If your meeting hasn't been held yet I can only presume sufficient creditors have already rejected your proposals, for you to state it has been rejected.

In which case why don't you ask your IP to tell you why creditors have voted against it?
keall
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by keall » Mon Aug 20, 2018 2:35 pm
Lisa Thomas wrote:
If your meeting hasn't been held yet I can only presume sufficient creditors have already rejected your proposals, for you to state it has been rejected.

In which case why don't you ask your IP to tell you why creditors have voted against it?

this is compicated to explain...my creditor meeting was held/ajourned until they reached maximum time woth no decision. cf rang me said wasnt enough voters or hadnt voted in time to get a decision either way. them having had a chat with one of my creditors it seems the creditor had taken my account out of iva status as cf had confirmed to them not me that my iva had been rejected. So to further complicate i followed the advise to get a copy of my chairs repirt only to be told it wont be available until after my meeting now on the 4th :shock: But ive already had 3!!!
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Foggy
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by Foggy » Mon Aug 20, 2018 3:08 pm
Lisa ... how many times can they adjourn ?

I fear CF are again tampering with the Protocol procedures which were previously agreed with the IVA Forum (industry body .. not this forum) and in accepted use for a number of years .
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Lisa Thomas
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by Lisa Thomas » Mon Aug 20, 2018 3:18 pm
As many times as you like but the length of time between can only be 14 days maximum overall...
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Foggy
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by Foggy » Mon Aug 20, 2018 3:26 pm
Ah, thank you, Lisa.

I was under the impression that there was a limit, after which the proposal had to be re-submitted if wanted.

I still think they are tampering with paperwork --- seems only CF have these issues. Last year they were having problems getting initial meetings off the ground on a regular basis with creditors claiming lack of contact and mis-information. Then the well know saga of the variation meetings.
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