does this mean my iva will be rejected?

[priti]

i'm going through an iva process at the moment and a meeting is set up for 8th feb 07, i'm able to pay 62p/£, my debt is £47000
how ever 22000 of it is with mbna, after reading this i've noticed mbna don't really vote, does this mean my iva will be rejected?

[MelanieGiles]

Hi priti and welcome to the forum

In my experience MBNA vote more often than not, and they they can be a bit prickly. Their decision will really be dependent upon the age of your debt with them (less likely to accept if it is more recent), and if you have been paying up until quite recently.

I note that you are paying a rather high dividend of 62p in the £. This is commendable, but may have its disadvantages too, so far as MBNA are concerned, as they may see that if the IP fees were to be removed, and you simply carried on making pro-rata payments, that they would eventually get paid in full (albeit this would take longer than five years and they probably would not freeze interest.

Your IP presumably also has experience of dealing with MBNA, and I doubt he/she would be putting a proposal forward for you if they felt there was a chance of rejection. Do be aware, however, that MBNA are presently quite critical of expenditure items such as Sky TV, health insurance, pensions, household maintenance insurance, mobile telephones, housekeeping and clothing, so do be sure all of your items can be justified.

Good luch with the creditors meeting, and let us know how you get on.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Great post by Melanie.

MBNA do seem to be causing some problems currently but rest assured that your IP wouldn't have taken on your case if they didn't feel that you had a strong chance of having your proposal accepted.

If the reasons for your debt difficulty are genuine, you are offering your creditors all that you can and you are putting them in a better position than if you were to be made bankrupt then your proposal is likely to be accepted.

Try to relax and let your IP work on your behalf, remember that they have a vested interest in your case being accepted.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[zoe]

I have MBNA as a creditor and they are causing alot of fuss.
I unfortunately lost some of my debts to gambling, (the card i used was with them) I fear they will reject mine.
The thing is i have no equity in my house and if i was made bankrupt i would loose my job as i am in Local Government. Would this stand me in good stead to get my proposals accepted?
Zoe

[Oliver]

MBNA are known for their harrasment of people that owe them money. There has been a problem with MBNA accepting IVAs at the moment but on the flip side there are literally hundreds of people who owe MBNA money having their IVA proposals accepted as we speak. Each case needs to be judged on it's own merits and having gambling debts or working in the local government will not preclude you from having an IVA accepted by MBNA.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[zoe]

Sorry Oliver
I mean that if IVA is not accepted and i would have to be made bankrupt, i have no equity and if i am made bankrupt i would loose my job (you can see why i am getting in a state now!) and not be able to afford to pay anything this is what i meant by would it stand in good stead to get IVa approved? as they would not get anything at all if bankrupt!
Zoe

[Oliver]

It will stand you in good stead Zoe.

When an IVA proposal is drafted there is a specific section which outlines a comparison to the creditors as to what they would get in an IVA and what they would get in bankruptcy. If the creditors can clearly see that they will get more in an IVA this should motivate them to accept the proposal i.e. some of a loaf of bread is better than none at all. This is the foundation on which IVAs are proposed as no creditor in their right mind would agree to an IVA which put them in a worse position than bankruptcy and I am glad to say that the majority of creditors vote on this basis provided you can offer them a minimum return of 25p in the £.

However, sadly there are a few creditors that would potentially vote against an IVA even when they can clearly see that they would be better off from an IVA. These creditors are relying on people like you to be forced into a debt management plan because they can't or won't go bankrupt. I would say that MBNA are currently NOT one of the creditors that have an outright NO policy. Things can change though and there are definitely murmurings that MBNA might be a problem in the future.

In your specific individual circumstances you can not go bankrupt due to your job and house. This means that you will need your IP to fight tooth and nail to make sure that your proposal is accepted. The good news is that there are many excellent IPs whom are happy to do just that and have an excellent acceptance rate on both IVAs in general and IVAs containing MBNA debt.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

Absolutely Zoe, make sure that your IP properly explains your employment situation in the propsal. No creditors want to see people losing their jobs.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Do IP's try to get accepted and speak to creditors if the initial answer is no?
Zoe

[MelanieGiles]

Yes - I personally spend a lot of time re-negotiating with creditors at the time of the creditors meeting. I have a less than 2% rejection rate for my IVA proposals, so you can see that we do work as hard as we can. I am sure that other IPs do the same.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Sorry another q!!!
I have been promised that at the end of the 5 years of an IVA (if accepted) from myparents some money to out in once one of their policies has been completed. Can this be written into the IVA to maximise payouts to creditors?

[MelanieGiles]

Zoe

I don't really understand your question. Are you saying that your parents have money available within the 5 year period of the IVA. If so, you could offer this to creditors to maximise the dividend returnable, but I would personally only do this if I needed to improve the dividend.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Yes Melanie

[MelanieGiles]

Then keep that up your sleeve if you need a bargaining point!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[zoe]

Ahh I see!
Clever lady!!!
x