what do the creditors do with the proposal once re

[caraf]

Hi.
What do all the creditors do with the iva proposal once they have received them. Do they just review the proposal, and then make a decision ?? or do they look back on your records and review what you have been buying and how the account has been used ??
Will they judge you on what you have spent ??

[debbiw]

Hi Caraf, I think they make their decision on what return they will get back from an IVA, to Bankrupcy. I don't think they look back at what you have been buying.

[debbiw]

By the way Caraf, MBNA have sold my debt to Eversheds, like i thought they would.

[caraf]

Is that good news ??? do you think mine will do the same ??

[debbiw]

i think MBNA pass the debt on to Eversheds alot, so they may pass yours on. I'm glad, because MBNA always vote no, so at least now i have a 50/50 chance eversheds might vote yes

[cr15py]

My debt to MBNA has not been passed over, which is very worrying for me, as they make up almost 25% of my debt - so if they vote no, I need everyone else to vote yes just to squeeze my IVA through (I think!).

[debbiw]

I think they tend to pass the debt over just before your meeting, so you both have loads of time before your meetings, mine is on monday, so its only 5 days away. I wouldn't worry about it, I have read on some threads that MBNA have voted yes. I just think they've got a bad rep for voting no.

[caraf]

Debbi, how much is your debt with MBNA ?

[debbiw]

My debt is £4000 with MBNA.

[caraf]

My debt with MBNA is approx 7500 !
Further to my first point, I used my CC's right up until my first contact with Clearstart, is this ok, it wont go against my iva will it ?

[insol]

agents who are appointed by creditors are usually paid a percentage of what they recover. my firm and eversheds certainly are. where as companies like TIX charge a subscription fee and a percentage. it is therefore in the agents best interest to accept the iva allbeit with potentially harsh modifications. some companies have there own instructions depending on the amount of debt, when it was incurred and the level of dividend. MBNA on the whole sell the debt to a company called MAX Recovery who instruct Eversheds and DWF Maxima to work the cases for them. when my team vote on IVAs they take into account your age, health, family situation, whether you own property. level of dividend isn't usually a factor as long as you are doing your best. we do occasionally do checks on when the debt was incurred but not ususally due to the large volumes of work we process. however we will try to squeeze every penny from you. and despite putting forward what you may consider to be the best offer creditors will expect more. normally because it's perceived that ip's don't put all the cards on the table. they hold a little back because they know creditors will ask for more. i hope this enlightens you somewhat and i appologise if it sounds a bit callous.

[debbiw]

Thanks Insol, that's very interesting, and welcome to the forum.

[cr15py]

Very interesting, I hope my creditors don't try to squeeze too much out of me, under my IP's advice we have built a bit of a buffer in case of such a rise (about an extra £55 per month), which she has told me I should probably expect to pay, given her experiences of similar cases - so I will wait to see what happens!!

Yeah, welcome to the forums Insol and thanks for the information.

[Adam Davies]

Hi insol
Invaluable info,thank you.
Isn't it sad that we have a situation where IPs build in a buffer because they think that creditors will ask for more.
Wouldn't life be easier if creditors accepted the word of the debtor,but spot checked certain expenditure prior to the creditors meeting.
At present we have some debtors signing income and expenditure figures knowing that they have been inflated and IPs proposing these figures also knowing that they are inflated.
Can't be right
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[catullus]

I think that an important point for Insol to take on board is that, given TIX fee criteria, it's in the interest of the IP to "squeeze" every penny from the debtor that is possible.

I sincerely hope that IP's are not succumbing to this because, at the end of the day, a viable IVA that lasts the 5 years is worth far more to an IP than one that collapses in months because of unrealistic contribution targets.

We certainly are being encouraged to see the creditors point of view, however,and given the fact that we set out a clear explanation of the budget and have to confirm that we have evidence in our files to confirm the budget, I would hope that Insol's views will soften