pence in pound.

[Martha07]

I was just wondering if anybody could confirm my rough calculation. I have debts of roughly £34000 and am proposing to pay £282 month over 5 years. This works out at roughly £16900 over the 5 years. Am I right in thinking that this is an offer of just under 50p in the £?

[Adam Davies]

Hi
No,because you need to take into account your IP fees that come out of the money that you pay in.This will be approx 4k,so your dividend will be approx 38p
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[pbeck]

I assume you are doing an IVA ?

If so, you have to take off the costs of setting up and running the IVA, with fees, VAT and disbursements, you'd be looking at probably around £12,000 actually ending up in creditors' hands, equivalent to a dividend of 35 pence in the pound.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[Martha07]

So does this seem like a reasonable offer. I'm worried now as one of our creditors is HSBC who we owe £6000

[Adam Davies]

Hi
They do not hold more than 25% of your debt so do not have a deciding vote so you can stop worrying.Your return is the industry average so you are in with a great chance
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

[Martha07]

Thanks Andy.
Also do you know how beneficial finance and lloyds tsb tend to vote?
We owe beneficial £14k and lloyds tsb 9k?

[cr15py]

I have heard LloydsTSB are quite receptive to IVAs, but no idea about Beneficial Finance I'm afraid.

Visit my blog at http://cr15py.blogs.iva.co.uk

[roadrunners]

Hi Martha
In my case LTSB were the main creditor, at 75.6%. They voted yes with only standard modifications, so my IVA was approved on just their vote
Roadrunner

we'll make it !!

[gavin]

Beneficial Finance is a trading name of HFC Bank Ltd, which is a member of the HSBC Group

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.

[Martha07]

So does that mean that Beneficial will be going for the 40p in the £ rule?

[Kes]

Hiya Martha07, Just to put your mind at rest I had HSBC as my main creditor when I had my IVA agreed, and they actually didnt bother to vote. However, my IVA went through as the vote(s) my IP got in were in favour, therefore the vote carried at 100% of whom voted in favour. I wouldn't worry I owed HSBC £19K!! and I repaid them 36p in the pound. This is a certainly considered reasonable by creditors in todays market. Best of luck. Kes

[MelanieGiles]

That looks like a good offer, and certainly one that I would be prepared to put forward. The creditors you mention are generally supportive so long as you are putting the best offer forward.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[taliesin82]

Hi.

Lloyds are very receptive towards IVA's. They accepted my proposal with a return of 26p in the £. I owed them around £18000 too.

[Martha07]

Thanks guys.
I feel slightly better about the whole situation now. The main thing worrying me in the meantime is dealing with my creditors while waiting for my proposal to be drawn up. I'm not very good when it comes to people having a go down the phone.
Does anyone have any experience with Clearstart and how long it takes them to draft the proposal?

[andrewgoodman121]

Hi Martha,
I am in exactly the same boat as you, and have been asking the same questions as you.
I have opted to go with the IVA Advice Bureau
and as instructed i too was instructed Not to pay my creditors and like you i find the whole thing stressful.
Once your IP has got all of your Bank Statements , Payslips and other documentation into your file your proposal should be drawn up and you will get either a face to face or telephone appointment with your IP who is acting on your behalf to write up the proposal to distribute to your creditors once you have signed it.