What are the chances to have the IVA accepted?

[sam73]

Hi everyone,
I am fairly new to all this so I am preatty much terrified. A company called Mccambridge Duffy is currently working to put my proposal together and it seems like it is taking ages. I need somebody that can answer a question for me: ONE of my creditors (RBS) appointed a powerful solicitor company (Irwing and Mitchel) to act on their behalf to recover my debt (25K). I have alredy filled a court claim form and I have alredy received (today) a judgement to pay over 300 a month (defenetely cannot efford). I know they want to put a charging order on my property so they will apply for that next. My question is: what would be their convenience or advantage to accept my IVA proposal? I can see them so determined to gohead with the charging order. They received a letter from Mccambridge Duffy telling them that i was putting together an IVA proposal but they completely ignored it. Unfortunately for my IVA to be put in place I would need of their acceptance due to the amount I own them.

Sam

[Adam Davies]

Hi
This seems to be the route of some creditors I,m afraid.What does your IP say about the possible charging order ?
Regards

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]

Hi sam and welcome to the forum

When IPs become aware of County Court Judgements these days, where their clients are property owners, it is quite likely that a Charging Order application is going to follow very quickly. So your IP needs to speed up the process before this gets to Court.

What percentage of your overall debt is held by RBS?

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

[sam73]

Well, they saying that at this stage is hard to say what will be they reaction to the IVA proposal. They also saying that as soon as I will receive next form which it will be an application for a charging order I will have to advise them immediately so they can put through an interim order (or something like that). I feel really helpless and I do not want the charging order on the property. Do you think that Mccambridge Duffy would have carried on to work on the case if they would have thought that they would not have any hope to have Irwing and Mitchel to accept the proposal? It does look so messy have you got any past esperience on similar cases?

Sam

[MelanieGiles]

Yes I do have lots of experience of dealing with Charging Orders, and if this debt represents more than 25% of your overall debt, and the creditor is well on the way to a Charging Order, they are very unlikely to accept an IVA. What advice has your IP given you in this regard?

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

[sam73]

Melanie,
I have a total of 72k and I hold RBS 25k so it is about 35%. I desperetely need of their approval. Do you think it would be RBS to decide of Irwing and Mitchel?

Sam

[MelanieGiles]

I am afraid that I feel that they will reject and go for the Charging Order - after all why would they agree to a dividend return under an IVA when they could get paid in full by becoming secured against your property.

What equity do you actually have in the property now?

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

[sam73]

I just received today the judgment for claimant from the court. It says that the defendant did not accept my monthly offer of £40 and I should pay instead monthly instalments of £314.39. First instalment due the 04/10. I am assuming that they will gohead with the charging order if I wont pay the instalment. According to my IP the process of the charging order is still at the beginning.

Sam

[sam73]

My property is worthed around 170k. In case of sale or remortgage the mortgage company want 156k.

Sam

[MelanieGiles]

Your IP needs to be aware that a lot of creditors are getting Interim Charging Orders within days of a Judgement - I had one recently that was granted within 5 days, so time is not on your side with this matter, and you still have the need to convince a majority creditors that they are better off by accepting a dividend payment under an IVA than security against your house - albeit they would presently be in negative equity.

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

[sam73]

So what do you think is best for me to do. Mccambridge duffy seems a good company and i needed the past 2/3 weeks to put documentation together. Evenctually I cannot agree most that time is not on my side but is there any chance that I can get out this mess?


Sam

[MelanieGiles]

I suggest that you refer this back to your IP, as you seem happy with the service you are being provided with.

What dividend do you expect to offer to creditors under the proposed IVA?

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

[sam73]

Ok, I was going to propose £250 a month for first 48 months, last 12 months £380. I have also have a business which is for sale and once sold I will be left between 15/20k and I offer them that. I know the montlhy offer is not very high. If you think that this is not enough how much would you think would be an offer that they might consider?

Sam

[MelanieGiles]

If we are talking about creditors generally, then the suggested IVA appears to be reasonable. But if we are talking about RBS specifically, I feel that they will go for the Charging Order, as they can then also prove in the IVA for their unsecured element.

Do bear in mind that if your disposable income is only £250, paying a Charging Order on an ongoing monthly basis will eat into that signifiantly, and may also make the IVA unworkable.

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

[sam73]

I have not probably explain that well. The IVA is in joint name: mine and my partner. The house is in both name but the RBS debt is only on my name. £250 is the reasonable amount that I feel we can effort confortably for the next 5 years even if events will be against us. I will probably be able to dispose more because once sold the business I am hoping to find a permanent job at least for 15/16k a year. At the moment my income is about 650 a month after tax. The IP is aware of this and I am aware that I will have to contribute more into the IVA once I will have an higher wage.

Sam