Second Chances

[Chris.z]

Hi all , just wondered if anyone had known an IVA fail, perhaps due to excessive fees or something else and then someone start a second one that is sucsessful or at least be given a chance to start a second one??

Chris

[iva experts]

Hi Chris,

If an IVA has failed it is possible for that client to apply a second time round for another IVA.

However in saying this my question would be why has the IVA failed? If this was due to failure to make IVA payments, Im not so sure how willing an I.P would be to take the case on as etc.

Best Regards. IVA Experts

[Chris.z]

Hi thankyou for your reply - The reason payments haven't beenmade recently is due to an unrealistic figure being set at the beginning, I was naive and just wanted to get some release from the neverending letters and phonecalls. This quickly became evident that I couldn't manage either. When I asked for a variation from the 350.00 I was paying which meant a dividend of 45p in the pound these are the figures I was quoted as to be put to the creditors. A 7 year IAV meaning 84 mths at 240.00 which equated to 20,160. Of this 14,000 approx went to my IVA company and just over 6,000 went to my creditors meaning a dividend of 23.44p in the pound???

Hope this answers your question.

Chris

[MelanieGiles]

If you start a new IVA you will be paying for another five years. I don't understand why your IP is saying you have to pay 45p under a varied IVA! For my clients who are struggling, we calculate their dispoble income and make an offer to creditors based upon the new payments for the number of outstanding contributions - so if you have paid for two years, I would offer a further three years at the new rate. Recently got one accepted at 16p - so I can tell you it works!

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

[Chris.z]

Hi melanie - I think I must have come across with the wrong point. My original IVA was for 350.00 this equated to 45p in the pound. I asked for a variation and was told the only thing my IP would put forward would be an IVA for 84mths at 240.00 which meant a dividend of 23.44p meaning my creditors got just over 6k and that my IVA fees were nearly 14k.

Chris

[MelanieGiles]

No - probably me not reading your post properly!

How long have you paid into the IVA for? And I cannot understand why an additional two years equates to £4,500 extra fees.

If you can only afford £240 per month, you could almost pay your creditors off in full under a DMP for the same period, especially if you managed to get the creditors to freeze interest. Or is bankruptcy now a better option?

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

[Chris.z]

Hi Melanie been in the IVA for about 8 months and I have nissed some payments due to it being unrealistic. My partner ans I split and I had some health problems. When I went for a variation they only offered me 240.00 as a minimum. I have no idea as to why the Fee's shot so high. The only reason i don't want to go bankrupt is because of what you alluded to in an earlier thread, in that I do feel obligated to do the best I can really.

I owe 26k and just feel that I should do the best I can.

Thanks

Chris

[MelanieGiles]

Chris

How much do you think you could afford to pay each month from now on?

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

[Chris.z]

I could afford 220.00 , but if needed I could afford 240.00 as I am moving into a flat in 1 month. Bills will be slightly cheaper and poll tax 9.00 a month cheaper.

Chris

[MelanieGiles]

Then Chris - my honest opinion is that you have already tried your best with the IVA route. Given your low contributions, I would have to question whether an ongoing payment plan is the right way forward for you. If you could persuade your creditors to freeze interest, on the basis that they had already in the IVA, it is logical that you could repay the debts in 9 years under a Debt Management Programme. If this is not appealing to you, then I think you have already tried to do your best by the creditors, have not afforded the repayments, and that bankruptcy is possibly a better option.

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

[finebridge]

I would totally agree with Melanie. It would seem yuo really tried the IVA and maybe a DMP would be best suited. If all your creditors agree to stop interest this option could be your best bet.

Kind Regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Chris.z]

And what are the chances of creditors stopping interest in a DMP??

Chris