What then would give your chosen IP a feeling that creditors would reject your proposal?
Is it certain creditors who are likely to reject your application?
If so which?
Andy Davie wrote:
If they felt that it was likely to be rejected or that all information had not been supplied
If your payments and dividend made an IVA not viable, if creditors preferred a debt management route due to the disposable income paying debts within 5/6 years, equity level too high, payments made to cover a shortfall in an investment property etc etc
An IP would only propose an IVA if they felt that it's likely be accepted and there are no creditors that stand out as likely to reject, it all depends on the offer that is made.
IPs have to take a view and report to creditors as to the client and the validity of a proposal. If they become aware of preferential payments to family members or other actions that could be overturned by a Trustee in bankruptcy they will make the creditors aware in the IVA proposal or can refuse to act.
Scenario 2 would be difficult to discover unless the client actually told the IP what he/she had done. IPs do not investigate the credit card statements of clients going back months. Most clients take cash advances as they get into difficulties and use them to live or meet pending direct debits.
Scenario 3 is straightforward. If they borrowed money for essential home improvements it could make an IVA more viable as there would be no need to vary the arrangement to allow roof repairs for example at a later stage. In addition, the debtor will have enhanced the valus of the property which will be of benefit to creditors when the equity is released later.
Maybe I should have clarified this in my initial posting.
Anyway taking the action you did Kallis; was there a problem in you proposing an IVA?
I am in no way trying to uncover how far down the fraud/deception line you can go down before an IP says NO.
I have not been reckless, but since being made redundant I have found myself "recycling credit" to get by.
I am now taking action, and want to make sure all my ducks are in a row before I go for it.
I used to withdraw cash from the hole in the wall on my mastercard, and then walk into the bank and make my minimum payment. I did this for a few months before admitting defeat.
I had no problems getting an IVA.
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