You have no idea just how helpful you have been today, just by being there, and sharing your own experience.
So its 75% of the number of creditors we owe rather than 75% of the debt being agreed, if that makes sense. eg. if the 4 other creditors agreed and mbna didnt (even though we owe them 33% of the debt) their vote wouldn't count.
These are just questions I am firing to get a clear understanding, I know what I need to do and don't expect anyone to work miracles for me.
I was quite surprised on the allowances for things like mobile phones and cable/sky TV. I was told I could add them in as expenses but didn't. I got a a pay as you go phone and freeview but I could still have claimed that I spent £40 a month on my mobile and £20 a month on sky and cable. Even as a single person I was allowed £200 per month for groceries, £50 for clothes and £50 contingency. I also pay a small AVC pension which I was allowed to continue to pay, as well as a private dental plan
Also, and this is odd as my salary fluctuates quite a lot because of weekend working and overtime. An annual average was worked out to make the calculations. I told my IP that some months could be very lucrative and my pay could be much higher than usual.It was a surprise, therefore, that the chairman's report made no provsion for any additional payments for bonuses and overtime. I questioned this when I was told my IVA was sucessful, but was told that none of the creditors had requested it. I would have thought that of all jobs, mine would be one where they would be looking at a % over my annual average.
In fact, come to think of it, out of 10 creditors, only one tried to make amendments (daft ones) to the original proposal...and that was Amex. As they were a relatively small creditor, they were rejected by my IP. MBNA didn't even bother to vote.
Interesting Nic, thanks for that, its good to hear everyone's views and experiences. We feel a little relieved to see so many others in the same boat, obviously not really but you know what I mean. Seems there could be light at the end of the tunnel after all. Thanks.
I think i may have confused you in my last mail to you. Please read the below and it will explain to you what i mean't.
At least 75% of votes (in value) at a meeting of people you owe money to must be in favour of your proposal. People you owe money to can suggest modifications to your proposal and you can choose whether to accept them or not.
At the creditors meeting each creditor has vote on your debt. Between me an my wife, we must of had about 13 creditors, only 7 different creditors voted as some were joint debts. The six who did not vote on our IVA, now have to accept the ruling.
Sorry take a little while replying, but i was just trying to get the facts correct.
Also , don't worry about MBNA to much, they don't like IVA's to much, but quite often they don't seem to vote anyway.
I think only lloyds voted for mine the others didn't so mine went through. I owed 3 things to lloyds they voted on 2, but had about 4-5 others not vote.
Sometimes the creditor voting is strange and does not seem to follow any patten. Myself and my wife had seperate accounts with GE Money, on one they voted to accepted and mine they did not even vote on. Strange as mine was for more money.
From a professional point of view, your case certainly looks as if it would be suitable for an IVA, but a more detailed chat with an insolvency practitioner would confirm this - and they will also discuss other options with you as well.
I would not worry too much about MBNA. They support the vast majority of the IVA proposals I put in front of them.
Just a thought... If it were possible to transfer half the balance on the MBNA card to another more IVA friendly CC provider before even starting down the IVA route, would that count against you in the final decision?
I also estimate that £230 per month would repay almost 50p in the £ depending on IP fees
This is just my view on MBNA being a bit awkward, but Cleardebt did not see them as problem either. I think it is more of a problem with the debtor as we seem to see a lot of negative press on MBNA on here and we assume they won't like the Ip proposals.
The frst question I was asked when I first discussed an IVA was whether I had debts with either Morthern Rock and MBNA. No to Northern Rock but yes to MBNA. I was told as they were less than 25% they wouldn't be an issue unless another creditor objected. As I said, MBNA didn't vote, or even submit a claim for dividends at the end of the first year but were given the opportnity to do so again after the first review. In the end it was Amex that were th most awkward... suggesting, for e.g. that I shoud be able to rent a flat in London for £430 per month!
i would of like to seen the flat for that amount. I think Northern Rock really seem to be a hard one to convince. Many on here, seem to have variations imposed on them when dealing with them. It makes me laugh really as it was not so long ago they were asking for protection from their creditors.
Thanks once again for your kind replies, we are definitely going to have to go down the IVA route or at least debt management, we just cannot go on and the MBNA is coming out of its zero interest in September so then we are really screwed. Will make a couple of calls today and set the ball rolling. You lot have really made me feel there is light because up to last night, crying myself to sleep I couldn't think of a way out. The pressure debt creates, even for strong creatures like me.
Hi Rockyrobin, Please know that you are not alone, my wife & I have unsecured debts of 80k, 60k mine, it took me 12 months to get my head out of the sand & confront the escalating debt problems that we have. making The initial phone call is the hardest, although when I made it, Tina Shortland was kind, considerate & the information she gave us was very helpful, we had options which I didn't think we had. Do a proper income & expenditure chart, put everything on paper.
Having discussed our options with Melanie last night, we are hoping to go the IVA route, we have around £450 that we can put into an IVA, we are in the process of getting all our information together to send off to Melanie. We know its not going to be easy, but if it means being debt free in 5/6 years & our creditors getting some money back then its got to be the right thing to do for us.
I wish you all the best, but make the call sooner rather than later.
Mike, thanks so much for that, it really is a relief to know others are with us and support what we are doing. You feel alone at times with this, ashamed, embarrassed etc etc but I was just reading another great thread, we are not bad people, we just got a few problems financially, well lots actually but there we go.
Thanks again
To Melanie:
Melanie, before we make any calls, I would be interested to hear your or anyone elses take on this matter. Once we start the ball rolling with an IVA, can we stop making payments as its crippling us and we literally have not enough left for living expenses, 2 household bills outstanding now too which I didnt realise had come, burying my head has gone too far clearly.
What then happens if the IVA doesnt go through, is an option for debt management viable or harder to get than an IVA. Either way, we need to take one of the routes but just curious. Will let you know how we get on and will keep posting for that all needed support. Will make some calls today when the kids are out.
