IVA Rejected

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Yogi17
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by Yogi17 » Wed Mar 14, 2018 6:28 pm
Hi, my creditors meeting was on Monday and the Iva proposal was rejected. The Insolvency Administrator said it is s because the offer was not commercially in the creditors interest. This is because of the equity in our house, meaning they could get repaid in full If our home was sold. We have been offered a monthly sum of money by my wife's parents to put towards the Iva along with our payments. Where it was originally an offer of £201 pm by our IP, we can now offer £600+ pm with the help of my wife's parents. Could they force us to sell our house instead, that would be unimaginable and I doubt we would get another mortgage in the future. My youngest son has learning disabilities and his school is all geared up for him. It has taken a long time to get him settled and if his routine was broken, it would be disastrous for him. I have told the Insolvency administrator about this, but she seems to think the creditors would not be interested as there only concern is getting their money back. She said she was going to speak to a creditor today who had not yet voted, but I have not heard anything as yet. I am about at my wits end and I can't remember the last time I slept properly. I can't loose my house and would do anything they require.
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Foggy
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by Foggy » Wed Mar 14, 2018 6:40 pm
They can only force you to sell if they make you bankrupt -- which, for a creditor to do, is a very expensive process and the fees would far outweigh the fees in an IVA.

You should have had a report detailing the voting -- was it just one large creditor who declined, or several ?
Yogi17
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by Yogi17 » Wed Mar 14, 2018 6:58 pm
I have no idea who voted yes or no. I've had no contact since Monday from the Insolvency Administrator. TBH after talking to her for the first time on Monday after the meeting when she called to tell me it had been rejected, I've not spoken to her again. I'm not sure what avenues I have to go down, I don't feel 100% confident after mondays conversation. Surely it would be financially more viable for the creditors for me to have an Iva and paying a good amount into it or a DMP so they get all the money back.
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Foggy
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by Foggy » Wed Mar 14, 2018 7:06 pm
Which firm were you with ? They should be able to email you a copy of the Chairman's Report, which might give you some clues, or, I guess from what you have said, they are trying to swing the votes to outvote whoever declined and might have adjourned the meeting.
Yogi17
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by Yogi17 » Wed Mar 14, 2018 7:14 pm
I will call her tomorrow, and let you know what is said. Thanks for your reply so far.
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kallis3
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by kallis3 » Wed Mar 14, 2018 8:01 pm
We had way too much equity in our house and had no problems.

I think you possibly could speak to more companies.
Mrs_Brown
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by Mrs_Brown » Wed Mar 14, 2018 8:24 pm
Who were your biggest creditors? The company representing Natwest voted no on all of my accounts with them, but I just scraped in with other lenders saying yes. It was close.
Yogi17
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by Yogi17 » Thu Mar 15, 2018 6:53 am
kallis3 wrote:
We had way too much equity in our house and had no problems.

I think you possibly could speak to more companies.


That's good to know. I hopefully will hear from her today. I'm beginning to think the same myself now. There seems to be so many companies out there that it's a minefield on who to pick. What I do know, s that I really could do with a good nights sleep.
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MerlinL14
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by MerlinL14 » Thu Mar 15, 2018 9:05 am
I know some people poo poo the big IVA companies as being too impersonal, me included, however they do seem to be the one's who have a lot more 'clout' when it comes to proposing the IVA to the creditors. It may not be an 'ideal' 5-6 years but it maybe worth going down the route of a big company. They will have better stats on whether the proposal is viable or not and in most cases will never put forward something they feel has less than a 90% chance of being accepted.
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Foggy
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by Foggy » Thu Mar 15, 2018 9:13 am
MerlinL14 wrote:
I know some people poo poo the big IVA companies as being too impersonal, me included, however they do seem to be the one's who have a lot more 'clout' when it comes to proposing the IVA to the creditors. It may not be an 'ideal' 5-6 years but it maybe worth going down the route of a big company. They will have better stats on whether the proposal is viable or not and in most cases will never put forward something they feel has less than a 90% chance of being accepted.



They might have more "sway", being creditor driven, but sometimes start the debtor off in an already impossible to maintain arrangement. None of them will put forward a proposal they do not think will go through -- they don't get paid otherwise ! As you alude -- it does depend on the complexities of the matter at hand as well ..... Easyjet is OK for a hop to Spain, but a transatlantic flight would be a nightmare ! :-)
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Keith White
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by Keith White » Thu Mar 15, 2018 9:34 am
Very sorry to hear about the rejection. If though you can make another offer - with a significantly greater amount of money - the there is no reason not to start again with a new proposal. £600/mty must be a lot more "commercially viable" than £200/mth! The amount of equity you have will be relevant as will who voted against it.
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 10:04 am
It depends on the terms though Keith, surely?

If I was a creditor I wouldn't want to wait 5-6 years for payment if I know I could make the debtor bankrupt and get my money back in full within 18 months...
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Lisa Thomas
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by Lisa Thomas » Thu Mar 15, 2018 10:05 am
from repossession of the property.

The Nominees report would have reflected this and must have warned the debtor there was a chance of this happening as it sounds as if the IVA was not as/more attractive than Bankruptcy.
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kallis3
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by kallis3 » Thu Mar 15, 2018 10:35 am
Bankruptcy would have been very attractive even with our mortgage and secured loan - thankfully we didn't have to go down that road.
Yogi17
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by Yogi17 » Thu Mar 15, 2018 11:49 am
Lisa Thomas wrote:
from repossession of the property.

The Nominees report would have reflected this and must have warned the debtor there was a chance of this happening as it sounds as if the IVA was not as/more attractive than Bankruptcy.


I was given no warning about having to sell my house. I have just gone along with what I have been told. If that was the issue, I can assure you I would have raised a concern. You must remember I am not a seasoned practitioner like you, and I can only go on what the experts have told me as such. Fortunately my wife’s parents are willing to put the extra monies in regardless of the amount.
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