Thinking of IVA

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karen
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by karen » Fri Jan 15, 2010 9:04 am
We are currently in the process of an IVA and I wondered what the chances of it being accepted at only 11p in the pound was. Has anyone else offered a small amount and been accepted?

 

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kallis3
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by kallis3 » Fri Jan 15, 2010 9:09 am
Hello Karen, and welcome to the forum.

It is a low dividend, but if it's the most you can afford the creditors should see this.

We have had low dividends mentioned on here before.

Which company are you using?

 

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karen
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by karen » Fri Jan 15, 2010 9:16 am
Thankyou for your response, we are using Payplan and I have to say they have been terrific, but 11p just doesnt seem enough to me,I'm very worried about it.

 

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Julie
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by Julie » Fri Jan 15, 2010 9:18 am
Hi Karen,

Payplan must be confident it will be accepted or they wouldn't put the proposal forward. Do you know when your creditors meeting is?

xx

 

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karen
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by karen » Fri Jan 15, 2010 9:25 am
Hello Julie,
I am just in the process of signing everything and getting it back to Paypal so I dont know yet when the meeting will be. I did ask for reassurance from Paypal and they said pretty much what you did. I suppose the thing I am worried about is one loan is for £25,000 and if they dont vote yes it will scupper the whole thing, its with Northern Rock (an unsecured loan) I think I will just have to be patient and wait and see. I was hoping someone on here might have had experience will a low dividend.
Karen

 

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Julie
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by Julie » Fri Jan 15, 2010 10:12 am
Stick around Karen, one of the professionals will be along to give their opinion and hopefully put your mind at rest.

Ask as many questions as you need to, we know its a stressful time. The majority of us have been there ourselves [;)]

xx

 

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kallis3
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by kallis3 » Fri Jan 15, 2010 10:19 am
I'm with Payplan and so far have been happy with them. They wouldn't put it forward if they didn't think it would be accepted.

I'm sure other IP companies have put forward very low dividends before and been accepted.

Do you have any assets? If not, then the other thing is bankruptcy and your creditors will get nothing. I'm sure they will see sense.

 

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size5
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by size5 » Fri Jan 15, 2010 10:36 am
It may be that if there are joint debts then the dividend may rise, as they get paid from both IVA's. Also, Northern Rock will view each case on its own merits, and if it is your best offer then I am sure you will be fine, although my gut feeling is that they may want you to go to 6 years rather than 5, thus also increasing the return. The dividend IS low, but I have had quite a few go through lately at figures there or thereabouts, so in itself it is not an insurmountable problem.

I am sure that your own IP will be happy to put your mind at rest for you, and I agree also that they would not propose it if they did not think it was viable.

Good luck and regards.

 

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karen
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by karen » Fri Jan 15, 2010 10:41 am
Thankyou all for taking the time to comment, one thing I have realised when something like this happens is you need reassurance, its nice to know there are people who you can turn to and I'm sure you'll be hearing a lot more from me in the next few weeks.
Karen

 

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kallis3
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by kallis3 » Fri Jan 15, 2010 10:59 am
Anything you need to ask Karen, there's always someone here, and your questions will get answered.

 

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Shining
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by Shining » Sat Jan 16, 2010 8:47 am
Hi Karen and welecome to the forum from myself, do let us know how you get on won't you? x

 

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karen
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by karen » Mon Jan 18, 2010 9:10 am
After some amendments my offer is now 20p in the pound, which sounds better than 11p.
I have asked them to change a parargraph which said we would hand over all overtime to creditors I was under the impression that you only needed to give a % this will be the only money we have for any unforseen
emergencies. Can anyone clarify that. I'm just waiting to hear from Payplan. Also my son turns 18 in May and he is starting a training scheme which pays 95.00 per week
how much would he be expected to contribute
towards household expenses.

 

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kallis3
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by kallis3 » Mon Jan 18, 2010 9:14 am
That does sound a bit better!

I have the 10% plus 50/50 clause with mine, and as I said, I'm with Payplan.

Has anything been mentioned about your son contributing? As he is earning so little, then he can't be expected to put in that much.

Even though you are at the proposal stage, you don't have to stick with them if you're not happy. You could ring one or two other companies and see what they say.

 

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Shining
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by Shining » Mon Jan 18, 2010 9:15 am
I'm unsure of how much your son would need to contribute to the household. Does any child tax credits and family allowance stop when he enters the training scheme or do they continue? I'm sure that payplan will factor any income change into the proposal in respect of child benefit, child tax credit etc.,

The overtime I'm not sure how it works will all companies, but with mine it's keep the first 10% and then it's 50/50.

 

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c.j
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by c.j » Mon Jan 18, 2010 1:02 pm
we also have the 10% clause on overtime.When my son lived at home we were expected to pay all his keep money into the iva as it was purely rent and he paid for his own food etc.Our dividendis also 20p after a variation.
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