IVA REJECTED

ginger11 · Joined: 05 Dec 2006 Posts: 2

My IVA has been rejected!!! Sad

what should i do?
I really really don't want to become bankcrupt!!!!!!
I thought about Debt management before i decided on an IVA but i didnt think it would really help solve my problems at all!

HELP....

Andrew · Posted: Tue Dec 05, 2006 5:46 pm Post subject:

Tough call. More IVAs have been rejected in recent weeks than formerly, because creditors are demanding higher returns from debtors. However, it is still true, at least as far as ClearDebt are concerned, that few IVAs are rejected - simply because the work we do to get to the IVA should mean that we either know it is going to get approved in advance of the meeting, or we withdraw the VA, knowing we can't get agreement between debtor and creditor.

It would be interesting to have further details of why your proposal was rejected, we might then be able to give better advice. In any case, you should probably seek immediate advice from a professional or a seasoned debt advisor to whom you are happy to tell all. National Debtline is a good place to start.

As you were eligible for an IVA, you must have fulfilled the legal definition of insolvency - namely that you can't pay your bills when they fall due. Unless your personal circumstances have taken a radical turn for the better, you might find bankruptcy to be your best route out of debt. This would particularly apply if you don't own a property, which a trustee in bankruptcy could sell.

Debt management is almost certainly not an option, given that it only really works for those who can repay their debts - even if over a long period.

Knowing almost nothing about your circumstances, we think you should strongly consider bankruptcy. It may sound scary, but, it will put all your debt behind you and give you a clear path ahead. You won't get any new credit - and there'll be a black mark on your credit rating for six years. But, we imagine that, right now, more credit is the last thing you want - or need.

Do post again, with more details - and we'll try to be more helpful.

All the best,

Andrew

ginger11 · Joined: 05 Dec 2006 Posts: 2

Hi,

My IVA was rejected due to " minimal liabilities "
I'm not really sure what that means though!

Would i be able to go back to my creditors with a different proposal, ive heard of people doing this?

ps i dont have a house or anything!

Andrew · Posted: Thu Dec 07, 2006 11:52 am Post subject:

OK, this means your IVA was rejected because your creditors don't think you are in enough debt for an IVA to be your only option.

If that was actually the case what should have happened is that your meeting should have been adjourned when it was first realised that creditors (or maybe it was just a single, awkward creditor?) would vote that way. Then, if the IVA could not be renegotiated, it could have been withdrawn - leaving your options more open because, now, you cannot apply for an IVA for another 12 months.

If the creditor(s) were right, then you should consider either debt consolidation (rolling up your expensive loans and card balances and replacing them with a single, longer-term and cheaper loan - and being absolutely disciplined about not putting anything more on your cards - get the scissors out!) or debt management, best achieved by picking up the phone and making deals with your creditors direct.

If the creditors were wrong, and you and the IVA company were right - that you don't have the resources to deal with your debts, then you should look seriously at bankruptcy.

Hope this helps,

Andrew

Jack · Joined: 28 Jan 2008 Posts: 3

Hi, could you tell me, if my IVA was to fail, could i apply for another on either with the same or different company?

Maya · Joined: 19 Jun 2007 Posts: 4

Hi Jack,

If your IVA failed you can re-apply for a new IVA with the same or a different company however, if you did apply for a new IVA with the same company, it would be at the Supervisor’s discretion to allow it to be put forward.

Maya Premjee
Personal Insolvency Advisor