Wife IVA Accepted, Mine Rejected help!!!

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wiganwire
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by wiganwire » Fri Jan 29, 2010 12:16 pm
Hi

My wife and I have both put in for IVA's. Hers has been accepted but mine rejected.

My best option might be to go bankrupt if my creditors don't reconsider but I worry about losing my house. I have no equity in the house at the moment and can afford the mortgage payments reasonably comfortably.

I would still prefer to go into an IVA which although I would pay more back would avoid the concern over losing the house, and also out of a moral obligation to give the creditors what I feel was my best offer (53p in the pound).

Would we lose the house if my wife continued with an IVA and I went bankrupt?

Please help.

 

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size5
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by size5 » Fri Jan 29, 2010 12:31 pm
What has your provider said? Are they proposing an adjournment to go back to the creditors?

Regards.

 

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kallis3
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by kallis3 » Fri Jan 29, 2010 12:44 pm
I agree with Size5.

Did they say why yours had been rejected?

If you have no equity in your house, then if you did go bankrupt, it is unlikely that you would lose it as long as your mortgage payments are up to date.

 

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wiganwire
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by wiganwire » Fri Jan 29, 2010 12:56 pm
Yes

They have accepted my wifes so that is safe and are now going back to twist their arm to see if it can go through.

My major creditor prefers me to enter a DMP but having done the numbers i don't see how it adds up for me.

 

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Clairbare
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by Clairbare » Fri Jan 29, 2010 1:23 pm
Hi Wiganwire
I am completely new to this site and this whole IVA process, my husband and i owe approx £64 between us, however my husband owes approx £40 or that i reckon and wondered if you can think of a reason why yours was not accepted - also anyone can answer this - what are the circumstances around what would be approved and what might not be - how do they make their decisions??

 

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Michael Peoples
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by Michael Peoples » Fri Jan 29, 2010 1:31 pm
There are some creditors who believe that if the debts can be repaid over a timescale of 10 years or less than an IVA is not the right solution. Not all creditors have this view particularly as DMPs do not necessarily lead to the suspension of interest, charges and legal action. There is another thread where a client is facing a CCJ and interest is accruing yet he is in a DMP with the CCCS.

As Wiganwire does not intend to enter a DMP this creditor has effectively bitten off their nose to spite their face. Wiganwire will likely pay less for a shorter period of time when he goes bankrupt and will not have to remortgage in year 5.

Calirbare. Do not worry as your IP should know which creditors have what criteria and not propose an IVA unless they are confident of acceptance.

 

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Clairbare
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by Clairbare » Fri Jan 29, 2010 1:41 pm
Michael
Thanks for that - the reason i asked is because the majority of our debt is to our bank (approx £55k over 4 different accounts 2 loans, 2 cc's) out of that my hubby owes about £40 just to this one creditor. The first contact at PP did say that if this bank decline it, then we cannot do an IVA - and i just wonder how likely it is that they will decline it! I think i am just so very nervous. We had been maintaining all payments until this week (albeit by robbing peter to pay paul which got us into this mess) but now i am even more worried it may be declined!!
Roll on the next step!

 

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Michael Peoples
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by Michael Peoples » Fri Jan 29, 2010 1:44 pm
The level of your debt means debt management would be a lifetime and realistically is not a viable option. Bear in mind you could petition for bankruptcy and this creditor would get little or no return. By offering an IVA you are giving the bank a chance of recovery with the possibility of even more down the line if things improve or equity becomes available. They would be silly to reject and I think your IVA should have a very good chance.

 

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wiganwire
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by wiganwire » Fri Jan 29, 2010 1:50 pm
Hi Clairbare

It was rejected as my level of disposable income was much higher than my wifes in the proposal and they felt that within 84 months I could pay it all back with a DMP, which I could if all interest etc was dropped which is highly unlikely.

Good luck with your IVA.

 

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Darkdog
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by Darkdog » Fri Jan 29, 2010 2:06 pm
Hi Clairebare,
we have a similar situation where one creditor could stop one of our IVA proposals, we have discussed this between us and feel if one not excepted then we would both propose to go BR and see if that swung it, but we have confidence with our IP and this probably won't arise, but if it did then we will discuss all further options with Melanie

 

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Michael Peoples
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by Michael Peoples » Fri Jan 29, 2010 2:27 pm
An IVA is a comparison with bankruptcy and if a DMP is the correct option an IVA should not be proposed.If all those clients whose IVAs were rejected went bankrupt immediately petitioned for bankruptcy creditors might stop putting in arbitrary criteria or ridiculous modifications.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 29, 2010 11:02 pm
I am acting for wiganwire, and won't say too much in public about the creditors particular reasons for rejectiom - suffice to say that we are dealing with the creditor during the adjournment period and are hopeful that we can negotiate an acceptance.

It is most odd that the same creditor can vote to accept his wife's proposal on a joint debt, and reject his! I have never seen this happen before and wonder if the reprentatives from the other IP firms who post on the forum have?

 

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danny4
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by danny4 » Sat Jan 30, 2010 1:34 am
I,m not an IP or anything like that but on my IVA barclays accepted and on my wife's they rejected. It didn't matter as it went through as they were not the main creditor but I thought it quite weird. Sometimes makes you wonder if they are playing games.

 

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Shining
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by Shining » Sat Jan 30, 2010 8:26 am
If Melanie's your IP rest assured she'll be fighting tooth and nail for that 'yes' vote.

I also think it's odd for one acceptance and one rejection on a joint debt, never thought about this before really.

 

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kallis3
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by kallis3 » Sat Jan 30, 2010 9:23 am
Rest assured that Melanie will do her best for you.

I'm sure you will get a positive result.

You do wonder why they can vote yes to one and not the other, particularly as it is a decent dividend.
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