if iva rejected, how does DMP work then?

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Johng79
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by Johng79 » Sat Apr 29, 2017 11:57 am
IVA proposal almost agreed. IP mentioned if IVA is turned down, then i would go on a DMP for few months then reapply.

How would that work eg payments? Would that be similar payment to proposed iva proposal figure? Has anyone had similar scenario occur? More importantly i assume there will be IP fees attached for dmp, not to mention additional charges added on by creditors not accepting dmp.
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Foggy
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by Foggy » Sat Apr 29, 2017 12:21 pm
From your point of view, you would still make one payment to the IP, who would distribute it as agreed with each creditor. The creditors would not be bound to accept and could change their minds at any time. They would also not have to freeze interest, although many do. It is, basically, a "gentleman's agreement".

I really doubt it will come to this, however, as your proposed dividend is a very good one.
Johng79
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by Johng79 » Sat Apr 29, 2017 1:00 pm
Sorry if i am doing heads in lol. Read last night of peeps being rejected with 100% return. Thats mental
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Foggy
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by Foggy » Sat Apr 29, 2017 1:12 pm
Johng79 wrote:
Sorry if i am doing heads in lol. Read last night of peeps being rejected with 100% return. Thats mental


On the other side of the coin, I have seen 9% accepted. There are never any guarantees.

On the point of 100% dividend being rejected, the creditor oding the rejecting here was probably looking to get a high return to include contractual interest, which, of course, they would with the IVA. There are also a few creditors who simply refuse IVA's point blank .... and if they hold the voting weight can bring the whole arrangement crashing down.

However, focus on the vast majority of proposals which are accepted.
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Lisa Thomas
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by Lisa Thomas » Mon May 08, 2017 2:18 pm
I have seen less than 1 penny in £ accepted!
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