I'm new to the forum but I've been digging deep into the discussions to better understand the process and stresses of going through an IVA, I finally bit the bullet and decided to go ahead with the IVA proposal with Creditfix. I have a total debt of approx £17,500 spread across roughly 15 different lenders (A Lot of payday loans with stupid interest rates), my largest loan is tesco bank for £7,500 and several other normal loans around £1500 each. My proposal is to pay 22.97p/£ and I'm just worried about the 75% approval rate. Seeing as though I have so many lenders, and a lot of them are for small payday loans, does this decrease my chances of being approved? Hypothetically even if 10 of my lenders approve my IVA, and 5 decline it, this means that I'll only have 66.66% approval and it would be declined?
After getting the figures down on paper it really hit me how stupid I have been, and after discussing the IVA process it seems too good to be true. Just waiting on hearing when my Creditors Meeting will be, also worried as next month approaches the payments will be declined as I've now moved bank's in preparation and cannot afford to repay them all (However, I have never missed a payment either, and some of the loans go back 2 years).
Any thoughts are welcome to help me through this anxious period!
22% is a reasonable dividend. As for voting ratios -- that 75% is of those that vote, and, surprisingly, many creditors do not bother ..... so, if only one votes and says yes, the proposal is accepted and all bound.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
its also 75% need to accept of the debt level that votes as well not of the number of creditors.
Therefore based on what you have noted if Tesco rejected the IVA (Unlikely) then the IVA would fail.
Majority of payday lenders choose not to vote so its likely to be decided by mainstream creditors.
Fri Feb 21, 2020 7:28 amGaryB1968 wrote:
its also 75% need to accept of the debt level that votes as well not of the number of creditors.
Therefore based on what you have noted if Tesco rejected the IVA (Unlikely) then the IVA would fail.
Majority of payday lenders choose not to vote so its likely to be decided by mainstream creditors.
Tesco were one of ours and they said yes.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks everyone for the reassurance and kind responses. I was curious as to whether the 75% was on the total amount owed or if it was total number of creditors. So basically, if Tesco and a couple of my other mainstream lenders say yes, then I should have a reasonable chance at success.
Just had a message today to say my Meeting date is set for 10th March, so fingers crossed!!
I'll keep you all updated, hopefully can get my life back on track and work towards a debt free future!
Just thought I'd take the opportunity to thank you all again for the reassurance. Yesterday I called creditfix and they informed me that my IVA had been approved during the Creditors Meeting!! Albeit, they asked for their usual modification of reducing Creditfix's fee's. Don't quite know how its approved if its subject to creditfix reducing their fees, but then they actually don't reduce them? Anyhow, I'm still over the moon to know its all approved and theres no more worrying!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
