An Insolvency Company submitted an IVA proposal on my behalf which has been rejected three times due to the fact that I have, according to Zoopla checks, an inflated amount of equity in my property. I have suffered from depression for six years and have attempted suicide, most recently in August. Medical records have been submitted as the final part of the process with me flagged as a vulnerable person. I have been advised after the final rejection (today) to try for a Debt Management Plan but the repayments will be almost identical to those for the IVA. My IP has been brilliant and has advised me to submit an official complaint to the majority shareholder (RBS) but I'm unsure as to what this may achieve. I would be so grateful for any advice that you can offer.
It could get them to change their minds --- RBS are a particularly awkward creditor. But it will depend on your overall health at the moment. The DMP would give you some breathing space to get some strength together first.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Whilst I completely sympathise with your mental health issues the IVA has to be fair (and attractive) to creditors.
If you have significant equity in your property then (depending on what you have propose) it may well be that the proposals were not fair or attractive enough to RBS or other creditors.
A complaint may convince them to change their mind but if, when compared to say Bankruptcy, creditors would get the same, or more money back just as quickly, or even quicker then it maybe that they stick to their guns.
A DMP may buy you some time as Foggy says to keep chipping away at the debt whilst you consider alternative solutions.
Interesting that you feel the estimate from Zoopla is inflated. Online valuations are quick and convenient, but unfortunately not always 100% accurate.
In these situations, I would advise my clients to get a written valuation from a local estate agent that may be much more accurate, and also takes into account any work that may doing etc. If that valuation is significantly lower, and if it brings the equity issue to a point that it is no longer a stumbling block, then another attempt may not be impossible.
Alternatively, a DMP may work as a temporary fix. In time, RBS may well sell the debt, at which point an IVA may be possible then.
20 years in debt advice
I do not post for anyone other than myself
I did my valuation via a local estate agent FOC and said I needed to move quickly and it worked.
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