What happens if creditors refuse an IVA

[sara.r]

What happens if creditors refuse an IVA - I'd rather pay back over the next 20 years than go bankrupt

[Lisa2009]

If an IVA is refused you can do a Debt Management Plan and pay a reduced ammount each month. However, you can not guarantee that interest will be frozen.

[Oliver]

If your IVA is refused you still have the option of entering into an informal plan, although if it was going to take you 20 years to pay the debt off I think it would be worth looking at bankruptcy and the features of bankruptcy again.

[emma_t]

If the iva is not accepted you will back to square one again.

The options would be bankruptcy or a debt management plan.

You could even look at doing a DMP for a while and propose another iva further down the line.

Emma x

[Cybus]

If you have made enquiries of any Insolvency Practitioner, you should have been told about all the options that are available to you and not just an IVA. They should have outlined the advantages and disadvantages of each of the alternatives that are available to you.

If, before you decided an IVA was what you wanted, you were not made aware of the alternatives, you have not been given the complete picture and I would suggest you have not been given best advice. If that is the case, I would suggest that you obtain a second and if you feel it necessary, a third opinion as it is those alternatives that remain available to you if creditors refuse to accept an IVA.

At the end of the day it is your decision. You need to be comfortable with whatever decision you make, confident that you have been given full information.

[petes39]

sara.r I was refused my first IVA and the company I was with gave up and just sent me lots of info about going bankrupt(even tho they knew I didnt want to) i have a massive debt very massive, however I phoned another company and explained the situ and i went on a DMP and 5 mths later tried for an IVA and was accepted, with alot less in the £ and a worse deal for the creditors ( all my cash had gone on the bills!!) good luck, best wishes and never give up. x

[bigpete]

No IVA's in Scotland; if it fails you don't get another chance; you're sequestrated (bankrupted)

[sara.r]

Thank you bigpete, petes39, cybus, emma T, ThomasCharles and Mrs Skint for your replies - they've been very helpful

[littleted]

I know how you feel, the thought of BR was not even something I wanted to consider, which is why if you choose an IVA you need to choose very carefully the people who put the deal together. You must also remember that an IVA is a better option for most creditors than BR.
Are you in the process or just thinking?

[sara.r]

Just in the thinking stage but realistically this is the route for me. I haven't shopped around yet but I have a 'under no obligation' meeting on Thursday with a rep from MoneyExpert - the company who actually suggested an IVA. I'm pretty impressed with the service to date and have actually just posted a request for any feedback about MoneyExpert

[littleted]

Melanie on this site has an amazing reputation and would be worth a phonecall. All I can say, having had my IVA accepted yesterday that the service I recieved from a smaller firm rather than the big boys was fantastic. When you face up to having a debt problem it can be a very difficult time and you are usually feeling quite vunerable, which is sometimes where some of the big companies step in - as let's face it they need to make money. I'm not saying for a second that the particular company you have choosen to speak to are bad in any way, just that sometimes someone like Melanie may handle your case in a more personal way, as 5 years is a long time. I very nearly went with Clearstart (whom have now merged their company with DFD) and I think it would have been a disaster. Luckily Ian and Melanie advised me to see someone else which I did thankfully. There is no harm in shopping around tho and talking to different people.

[TheMatrix]

I think so long as the creditors are better off under your IVA proposal than going BR it will likely be accepted.

They are not going to risk you going BR and get back say a few hundred quid, as opposed to several thousand pounds under a IVA

[sara.r]

Thank you - this forum is fab

[emma_t]

Sara

Keep in touch with the forum and whenever you have a question or just need a bit of support - post as someone is always here[:)]

It really is the only thing that kept me going and got me through the iva procedure and I feel I have made lots of new friends and have met up with some at the Frugal friends meetings we have.

It is a fantastic forum and will really help you when you need it[:)]

Let us know how you go after your meeting
Emma x