Received my IVA proposal, is there anything I should pay special attention to?

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ediunia82
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by ediunia82 » Fri Jul 14, 2017 4:43 am
Hi guys, first of all thanks for creating a great forum and sharing your experiences! Yesterday received my IVA proposal and wanted to ask if there is anything particular I need to pay attention for??? Thanks a lot!
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kallis3
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by kallis3 » Fri Jul 14, 2017 6:17 am
Hi,

Read it very, very carefully several times. If there is anything you are not happy with, query it with your IP company. You can also ask questions on here but, bear in mind we can only give broad answers as we have no knowledge of your circumstances or your proposal.
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Foggy
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by Foggy » Fri Jul 14, 2017 7:03 am
If you are a home owner, pay particular attention to the equity release clauses and ask for a written example of how they calculate equity. Also check that you are happy with the allowances and that they haven't made things too tight financially (Yes, you have to pay what you can afford but you don't have to exist on Lidl baked beans for 5 or 6 years). Also run your eye over the creditors / debts -- do they seem correct (make sure all unsecured debt is included -- don't want someone to pop out of the woodwork later and derail the whole thing).

As Kallis says, read the whole thing, have a cuppa .... and read it again :-)

Best of luck going forward.
ediunia82
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by ediunia82 » Fri Jul 14, 2017 1:36 pm
Thanks Foggy, getting soooooo nervous now, probably typical, start thinking that going to be rejected :cry: . No, I am not a homeowner, renting privately... Do you really think that I shouldn't pay any minimum payments or loan payments this month??? I never missed a single one! Thanks.
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Foggy
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by Foggy » Fri Jul 14, 2017 2:45 pm
ediunia82 wrote:
Thanks Foggy, getting soooooo nervous now, probably typical, start thinking that going to be rejected :cry: . No, I am not a homeowner, renting privately... Do you really think that I shouldn't pay any minimum payments or loan payments this month??? I never missed a single one! Thanks.


I stopped paying all of my unsecured creditors as soon as I decided the IVA was the way to go ... this gave me a small emergency fund (which was needed!). I and many others saved the money (that way, in the unlikely event that the IVA was rejected, the money could still be used to "catch up" if need be.) Until that time I had never actually missed a payment (though I was borrowing from one card to pay another!). Frankly, in my case, had the IVA been rejected it would have been bankruptcy anyway, so better I had the money for now, rather than flushing it into a never ending debt blackhole.
ediunia82
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by ediunia82 » Fri Jul 14, 2017 10:57 pm
Thanks Foggy, also I know that rejection is unlikely, what are the next steps if IVA rejected- another company? bankruptcy?...
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Foggy
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by Foggy » Sat Jul 15, 2017 9:13 am
ediunia82 wrote:
Thanks Foggy, also I know that rejection is unlikely, what are the next steps if IVA rejected- another company? bankruptcy?...



It depends upon the reasons for rejection. Usually, in these circumstances, the meeting can be adjourned to a couple of weeks while you consider whatever the reasons are and come back with an amended proposal. Or you can negotiate a DMP for a while to allow you a breathing space to consider your next move.
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