creditors meeting it didn't go well at all

[HMETAL]

i had my creditors meeting on thurs 6th it didn't go well at all. mbna were the problem, they said i had enough disposable income to pay over 10 years with a DMP.i've been trying to sought out my iva since jan and now i have to start all over again! i don't understand as i owed the halifax twice the amount of mbna and they (halifax said yes to the iva along with benifical finance. this has made me really stessed out.
any veiws most welcome

[Reviva UK]

Hi HMETAL

Sorry to hear your news.
It is all down to the voting on the day and for the IVA to be accepted 75% of the amount of debt that vote need to be in agreement.
it is not the number of creditors nut the amount owed to each.


Scenario

Barclaycard 10k
Amex 10k
lloyds tsb 10k
capital 1 10k

in the above example if all 4 creditors vote you need 3 to agree ( 75% of the debt)

If however only 3 creditors vote ( total debt voting is now 30k) then you need all the creditors to agree as if 1 voted against you you would have 66% for and 33% against so it would not be accepted.

Hope this helps

which IVA company are you with?

Also whould be helpful to know which creditors you have, what you owe each and how they voted. Some of the IP experts may be able to give some advice about this.

Also what monthly IVA payment were you proposing and what dividend were the creditors expecting

many thanks

[sblack]

The way I see it is that MBNA seem to do very little to help people with genuine problems that are seeking an IVA. They seem to be the ones who constantly send letters and telephone (daily). They do not want to seem to listen and have very little interest in your predicament. This is validated by my personal experience with them over that last couple of months. They also seem to be one of the creditors who for whatever reasons vote against IVA's.
Or is it just me who seems to hear about MBNA constantly voting against the majority of recent IVA's.
[V]

[Reviva UK]

They are also pretty agressive towards people prior to an IVA.

They seem to be really only interested in getting you into a debt management plan with them. They usually freeze interest if you pay 0.8% of the debt each month but really don't care about preferential treatment of other creditors etc.

I always find it strange that when I speak to a creditor on a clients behalf they usually want too offer their own counciling service in the early days.

I find it peculiar that they don't seem to understand that their debt is not the only one and how on earth can they give impartial advice when they are a creditor.

Just thinking Easter is early this year so people with MBNA should be expecting their Easter cards very soon. I am serious they send a postcard with a colourful easter bunny on!

[Adam Davies]

Hi
I think that we may see more cases like this where creditors prefer a DMP over an IVA.
Use a DMP for now and if your debts are below 75k you may be able to propose another IVA once the Simple IVA is launched later this year[hopefuly]as you will only need a 50.1% approval rather than the current 75%
Regards

[sblack]

I have MBNA as my main creditor, if they reject my IVA and my husbands IVA is accepted how will we stand with doing a DMP with my creditors until the new IVA is introduced?

I had a conversation with a woman from MBNA on Friday and she spoke to me like I was a criminal. She told me that my IVA will probably be rejected because I have made no token payments and that I was given wrong advice by my IP as they had told me to stop payments. She got me so worked up that I told her I had sent an IVA payment to my IP before the meeting and said that this would also go against me. I was in such a state when I got off the phone. I rang Melanie's office and spoke to Angela who was great and calmed me down.

I know that these people on the phone have no say in how the vote goes but I already feel really bad about the mess we are in without them treating me like this.[:(][:(]

[maxdebt]

Hi SBlack. The woman who told you your IVA would probably be rejected because you have not made payment is talking hogwash in fact I would say she is deliberately lying to intimidate you to make a payment. Remember almost 90% of IVAs which are proposed are accepted, The key is to putting your very best proposal forward and then convincing creditors that there is no better way forward for them. Melanie and her team are absolutely brilliant at that and know all the creditors acceptance criteria far far far better than some ignorant bully on the phone

[sblack]

Thanks maxdebt for the reassurance I know that these people have a job to do.[:)]

I also have faith in Melanie and her team as her track record is fantastic but there is this niggling doubt in my head that things will not go our way. My hubby keeps telling me to stop worrying but I can't, don't know how I will cope until our meeting on Friday.

[maxdebt]

Hi SBlack. Melanie proposed 25p/£ for us and MBNA had a casting vote ( had over 25%) so if they said NO then the proposal would fail. At the time I begged Melanie to offer more cos I was terrified of the proposal being rejected, but Melanie said the proposal was realistic based on my I&E and to offer any more would be unsustainable for us.) She was right of course and I was wrong. Proposal accepted with no payment increase modification. Good luck for Friday but really it's not about luck

[sblack]

Hi maxdebt
Our proposal is 29p/£ and MBNA have almost 50% of my debt.
I know that Melanie will be putting our best offer forward and it is very reassuring to know that yours went ok.
I am feeling a little more positive now.
Thank you![:)][:)]

[maxdebt]

The members of this forum supported me back when I was in the same position as you.
Just talking to you is giving me flashbacks of the emotions I felt on the days leading up to my meeting! I am sure everything will be fine [:)]

[sblack]

Thanks maxdebt

This forum has been a godsend over the past few weeks. You feel all alone when you first start the process, it is reassuring to know that there are others out there who are feeling the same.

I see from another thread that you are an advocate of slow cookers. I purchased one yesterday, because of our working hours and childrens activities after school we eat at different times. I have a friend at work who couldn't manage without hers and suggested I get one. I will be christening it tomorrow and cooking a beef casserole. Do you have any tips?