Can anyone advise. I recently applied for an IVA and just 1 creditor rejected the proposal. Yes they had the largest amount so it went against us. Can the courts intervine and turn over the vote or am I doomed?
It can be reproposed. What has your IP said? What was the offer made? What is the proportion of debt to that creditor? Who is the creditor?
Don't lose hope, it isn't over yet.
The Court cannot intervene in the decision of your creditors, and unless you are going to present something different from your first proposals an representation will not alter matters. Creditors actually are getting fed up of the number of represented proposals they are seeing at the moment, and do expect IPs and their clients to get it right the first time.
Is the creditor either Northern Rock, MBNA or Black Horse?
Hi Melanie Thanks for your response. The creditors in question are Northern Rock (declined the IVA) and MBNA didnt respond at all. Our IP has said the only option available to us is to try a debt mgt solution. Northern rock were not interested in a higher amount, they just said no to it altogether. As they are a large amount of our debt they had the biggest say. I have started our Token payments again as the money I paid the IP has been taken to pay for their services. Im now getting letters from the creditors stating that they are passing our debt to a seperate compnay, I presume debt collectors. Do you have any suggestions.
MelanieGiles wrote:
The Court cannot intervene in the decision of your creditors, and unless you are going to present something different from your first proposals an representation will not alter matters. Creditors actually are getting fed up of the number of represented proposals they are seeing at the moment, and do expect IPs and their clients to get it right the first time.
Is the creditor either Northern Rock, MBNA or Black Horse?
How much have you paid the IP firm and who were you using? And do you know why Northern Rock rejected the proposals? Was it a Together loan product?
Your only option is not just a DMP, you could also declare yourself bankrupt. It might be sensible to get a second opinion on this by chattting to a couple more insolvency practitioners - and preferably those who understand the criteria that Northern Rock look for when considering IVA proposals.
Thanks for your quick response. The company we used were Blair Endersby (assigned to us by Bainst & Ernst). The amount we could afford to pay to our creditors was £355 so we first had to pay Bainst & Ernst £355 then I paid £355 to Blair Endersby to use at the meeting of creditors. I thought this was to pay the creditors but it turns out they didnt pay any of it to the creditors and have now kept it for their fees unless I decide to do a DMP with them. I was trying to avoid the bankruptcy route as we own our home and have a young family to consider. Northern rock is a together loan and they stood by the ground that they didnt want to enter into the IVA despite loosing an additional £40k on top if we are declared bankrupt. We have debt of £85k and northern rock are £30k of that debt.
MelanieGiles wrote:
How much have you paid the IP firm and who were you using? And do you know why Northern Rock rejected the proposals? Was it a Together loan product?
Your only option is not just a DMP, you could also declare yourself bankrupt. It might be sensible to get a second opinion on this by chattting to a couple more insolvency practitioners - and preferably those who understand the criteria that Northern Rock look for when considering IVA proposals.
I suggest that you take a second opinion before deciding on either IVA or bankruptcy. But firstly can you tell me how much the loan repayments on your together loan actually are on a contractual basis.
Hi Melanie. The Northern Rock together loan is £186 per month for 30 year term. When you say a second opinion on either IVA or Bankruptcy, do you think it is worth trying to resubmit the IVA?
MelanieGiles wrote:
I suggest that you take a second opinion before deciding on either IVA or bankruptcy. But firstly can you tell me how much the loan repayments on your together loan actually are on a contractual basis.
It might be worth looking at - as I cannot really see why it has been rejected, but of course I do not have access to the paperwork to be able to comment properly.
A DMP will take over 20 years to repay, and creditors are not likely to get anything under bankruptcy proceedings unless you have equity in your property. Do you have any equity at the moment?
Yes the rejection is my concern. Blair Endersby said in a follow up phone call after the meeting of creditors that Northern Rock were not agreeing to any IVA's as they were more interested in getting back what they could from debtors. They could have advised me of that before the meeting. In regards to the equity we did have £10k but in the current climate that has gone, in fact if prices keep falling then the property will drop into negative. I just cant see an end to this nightmare, and the company we paid to help have taken another £700 we didnt have and just left us with no options. In the post today we now have debt collectors letters that have been passed on from the credit cards. We ahve just 3 days to respond with payment!!! What payment???
MelanieGiles wrote:
It might be worth looking at - as I cannot really see why it has been rejected, but of course I do not have access to the paperwork to be able to comment properly.
A DMP will take over 20 years to repay, and creditors are not likely to get anything under bankruptcy proceedings unless you have equity in your property. Do you have any equity at the moment?
That is simply not true! Northern Rock have agreed to accept over 80% of the cases I have put before them this year, and I know other IP's are experiencing the same. I wonder if the Blair Endersby spokesman on this forum is able to comment if this firm really are having all of their IVAs rejected by Northern Rock, as I find this hard to understand.
Melanie. Are we allowed to start the IVA process again, or just make amendments to our current proposal. Although that proposal is outside the 14day consultation process. I cannot beleive bankruptcy is the only option when I am willing to make payments. Would appreciate your feedback. Alternatively what would be the process for now applying for BR as I do feel this is the only option now left if the IVA door is closed.
MelanieGiles wrote:
That is simply not true! Northern Rock have agreed to accept over 80% of the cases I have put before them this year, and I know other IP's are experiencing the same. I wonder if the Blair Endersby spokesman on this forum is able to comment if this firm really are having all of their IVAs rejected by Northern Rock, as I find this hard to understand.
You will need to start again I am afraid, but there are several IPs who I am sure would be happy to look at this for you. If you are determined to avoid bankruptcy, it must be worth another go!
Melanie. Is there any reason that the outcome from Northern Rock would be any different if we proposed the IVA again. Whats to stop them just refusing again.
MelanieGiles wrote:
You will need to start again I am afraid, but there are several IPs who I am sure would be happy to look at this for you. If you are determined to avoid bankruptcy, it must be worth another go!
Nothing - I'm just highlighting this as an option that is available to you to try. If I were presenting this case, I would have got prior approval or rejection from Northern Rock before calling a meeting of creditors.
