Nominee's report

[JoeB]

One for Melanie I suspect. I have received our proposal and queried a few things - and been told that somethings are highlighted more in the IP's Nominee's report - so my question is how does the Nominee's report relate to the proposal does it highlight the key issues a sort of exec summary?

[MelanieGiles]

Hi ggr

The Nominee's Report is usually a one-pager which confirms that the insolvency practitioner has received the debtor's proposals and believes that they are worthy of a creditors meeting being held. All salient points relating to your circumstances ought to be disclosed in the proposal and not the nominee's report. What issues are you querying?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Its highlighting the key Income to secured debt which I am not sure is brought out enough and put in the conext that yes we think its affordable and yes you can see how the dividend is diluted through BR but I just wondered whther as it could be key for us whether it should have section on its own?

[MelanieGiles]

Not sure what you mean by key income to secured debt. Can you clarify please.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Income to secured debt - we are just over 40%

[Cybus]

Correct me if I am wrong, but I assume that you are suggesting that your payments to secured creditors (Mortgage or secured loans)account for 40% of your household income ?
If it is then the creditors or their representatives would be able to establish that fact from the income and expenditure details that should form a part of your propsals.
Is that the case ?

[MelanieGiles]

There are a number of creditors who are currently rejecting proposals where the mortgage and secured loan payments are more than 40% of salary. If this is what you mean, and your is higher than this, then you will need to seek the advice of your Nominee as to whether your IVA is still viable.

Cybus makes a good point - the creditors can work out the percentages for themselves. I have occasionally put forward an IVA proposal with higher ratios, but always clearly explained the reasons for doing so in the debtor's proposal rather than my nominee's comments.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

This exactly what I mean and feel quite worried now (we are only just over it) - but it is also clear in the proposal that our mortgage is fixed for the next 5 years and I have very good prospects for salary rises through promotion in the next few years - will they take this into account - our IP said this would mitigate the fact?

So in effect its saying their is not an affordability problem now and circumstances will only get better as we protected against interest rate rises.

Which creditors in particular are rejecting at the moment?

[MelanieGiles]

I am sure that if you can prove that your salary will be increasing, that creditors will take this into account - but this should be clearly explained within the proposal documents. I find that Lloyds and Barclays particularly reject if the payments are more than 40%.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Does it matter how much over 40%?

[MelanieGiles]

I cannot say - all you can do is put this forward to see. Is your mortgage on interest only or repayment? If repayment, you could always switch to interest only to bring the percentage down, and how much would it cost you to rent a property in the same area as compared to what you are paying to your mortgage and secured loan?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Mortgage is now interest only - and it probably would be cheaper to rent at the moment but we do not want to sell. I just hope that it is clear enough in the proposal.

[Adam Davies]

Hi
Interesting the 40% threshold for income/secured lending ratio that some creditors seem concerned about.I wonder if they have the same concerns when asking someone to remortgage in the fourth year of an IVA ??

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Yes they do actually! Or will do in future! The remortgage in the final year is to belimited to no more than 60% of the IVA monthly payment. These are new provisions to be introduced with the forthcoming IVA protocol changes expected by the end of this month.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[JoeB]

Melanie - when you say dealt with clearly what would you expect to see in the proposal?