HSBC,

[ruby2610]

Hi People,

Has anybody had any good/bad experiences with HSBC at least 60% of my debt is with them? I am currently considering an IVA, but nobody seems to have had any dealings with them. Do they tend to vote or not. I would value your comments/experiences. Obviously every IVA is different, I understand that, but having read other sites some people have had some real problems with them and I’m starting to panic!

Thanks,
RUBY

[kezza]

Hi there

They are one of my creditors, only a small one though. my IP told me that they usually stipulate a minimum 40p/£ but I suppose it depends on the individuals circumstances.

[MelanieGiles]

I find that HSBC usually vote in most Individual Voluntay Arrangements, and have recently started to use the services of a specialist voting firm called The Insolvency Exchange. General criteria is that a minimum dividend of 40p in the £ must be returned, and they generally scrutinise expenditure quite carefully, using the British Banking Accociation's Common Financial Statement - which is quite frugal in parts. As with all IVA's it is the general presentation of the case, and the commitment of the debtor to stick to the terms, which generally provide results on the day.

Regards, Melanie Giles, Insolvency Practitioner for 20 years.

[neverending]

Melanie
Do you think that creditors react favourably or non favourably depending on the actual IP presenting the case ??.I always remember my own IP stating that their reputation would get the IVA approved.

[ruby2610]

Very helpful thanks, be intrested to see any answers to Neverendings question. Some IPs must have a better rep than others.
Ruby

[MelanieGiles]

Oh heck Neverending (nice to meet you by the way - and you two Ruby) that's a difficult one for me to answer in a live forum!!!

I have to say that in all professions there are good guys and bad guys, and of course the creditors will take heed of the person and the firm putting their name to a proposal. I only wish that more monitoring was done of the success rates - not just at meeting stage but for IVA's which actually run their course and return the dividends originally pledged.

Short answer - yes I do think that the identity of the individual IP is important - particularly when dealing with the more difficult creditors - HSBC, Black Horse, Northern Rock and MBNA, and also the way the IVA has been researched and presented.



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jamesfalla]

I think that Melanie is quite right. The way that IVAs are researched and presented is very important for them to be successful. This is not just in regard to getting the origional proposal accepted, but it is also in ensuring that they run their full course and the creditors do get the return they have been promised.

The most important thing for anyone considering entering into an IVA is that you should not commit to making payments that you feel you can not afford. This is the rocky road to disaster as if you think you can't afford the payment, you usually can't.

Ultimately, if you can not afford to make the required IVA payments (and as has been highlighted above, some creditors like HSBC are raising the bar and demanding minimum returns of 40p in the £) then you should be considering one of the alternative debt solutions - bankruptcy or a Debt Management plan.

All the Best
James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions, with extensive experience of solving personal debt problems over the past 10 years. I am regularly featured on BBC News, Finance Programs and Radio.

[ruby2610]

Thanks Melanie & James, I understand what you're saying here but where do start, and how do you know your IVA is being presented probably before it's too late? (i know very little about the process although i know to be realistic about what i can afford to pay)
Thanks
Ruby

[MelanieGiles]

With my own clients I operate a two phase test to calculating affordable monthly repayments.

Firstly, I assist my clients to list out their incomings and outgoings, building in some contingencies for house and car maintenance, miscellanouse expenditure, medical expenses and anything else which is not paid on a regular basis but nevertheless must be budgeted for. This will hopefully leave a surplus of money to offer to creditors.

Secondly I operate what I call my "gut feeling" test, which is perhaps the most important measure. If the disposable income figure does not pass the gut feeling test ie my client is nervous about whether they can afford to pay it, or not confident, then the figure is probably too high. We then go back to the drawing board to try and ensure that sufficient provisions are made and thus reach a revised comfortable figure.

Our industry (particularly the creditors) should be mindful that it is you guys who have to live with the IVA payments for the next five years, which will involve an element of lifestyle change, adaptation and sacrifice. Please remember that an IVA is not meant to be a drachonian procedure, but one which can be comfortably afforded. Some banks (and I hate to say it but also creditor representatives) would do well to bear these things in mind when they are casting their votes.

My advice to you is to do a simple income and expenditure account of what you have coming in to the household and going out. Why not put it on this forum so all of the experts can comment and give you some free, impartial advice! It would be interesting to see if any of us would differ in our approach!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ruby2610]

When I've calculated everything i may just do that. Just to see what different experts think. My main panic is finding the the right people to deal with this life changing process. Pick the wrong people/advice and my wife and myself could end up in a worse position! It's knowing who to trust?
Thanks for your valued input and taking the time to respond.
Ruby

[neverending]

James
Your quote"
The most important thing for anyone considering entering into an IVA is that you should not commit to making payments that you feel you can not afford. This is the rocky road to disaster as if you think you can't afford the payment, you usually can't."
is really hitting the nail on the head.Five years on an inflexible budget is an eternity.There are cases on this forum of IPs and creditors asking for more than the disposible income,surely a road to an IVA failing.Lets have some Industry standard figures for food bills,child expenses etc

[scaredkez]

i agree with you, its knowing who to trust and who is taking you for a ride, i agree with neverending it should be regulated and have industry standard figures for us to work from to give a clear focus on what to expect/ idea to work towards when proposing IVA.

[ruby2610]

God help anyone who's in our position and doesn't fine this forum to help/advise!
Thanks
Ruby

[MelanieGiles]

Beware industry standard figures - they don't take account of individual circumstances. The British Bankers Association Common Financial Statement being the obvious example. A good IP will present his/her client's financial position as it is - it is then up to the creditors to judge whether the expenditure is reasonable.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Melanie
Quote"A good IP will present his/her client's financial position as it is - it is then up to the creditors to judge whether the expenditure is reasonable."
This is in essence the problem with the IVA industry,finding and knowing a "good" IP anyone going down the IVA route only finds out when its too late that their IP is not a "good" one.
The mortgage business is very strongly regulated now as is the insurance industry,some would say too much.However the IVA industry is poorly regulated and on this site I have read some horror stories.
Lets start with industry standard MINIMUM figures because you obviously work with your clients best interests at heart but some debt companies/IPs clearly do not.