Turned down for IVA

A question about : Turned down for IVA

Hi Everyone
Has anyone on here been turned down for an IVA?
Basically our largest creditor, who has 50% of our debt has rejected our IVA offer because they were not happy with the 12 pence in the pound offer put forward by Payplan. The creditor is Enact and we owe them approx Ј29000 from a mortgage shortfall sold on to them by Santander. The IP seemed very surprised that we were turned down.
Enact also apparently refused to negotiate and so we are back to square one. For several reasons my hubby and I don't want to go bankrupt and we are gutted that our IVA has been rejected.
I am wondering whether it is worth hanging on and trying again in a few months time.
My husband is speaking to Enact tomorrow to basically tell them if we dont get an IVA then we will have to go bankrupt and see what they say. I have also spoken to Vincent Bond another IP who said that they could take on our case if Enact will give us some idea what they will settle for.
I would appreciate any help you can offer me
Many Thanks

Best answers:

• Vincent Bond are not an IP firm, avoid if you can. They will charge fees as an introducer whilst they "assess" your viability, and get a commission as well should any IVA be accepted. The commission bit I don't mind so much if you get the result you want, everyone is entitled to be paid for good work, and you wouldn't pay it, the IP would. The extra 2 or 3 months to "prepare the case" for you is just not on really.
  If in doubt, get the name of their in house IP.
  Anyway, as you don't want to go BR, you can try again as soon as you like, there is no restriction on that as long as there hasn't been an interim order, which is rarely used now. Maybe try and offer 6 years instead of 5? Try and avoid the temptation of offering more per month though, that is usually asking for trouble.
• Looking at their website, Vincent Bond do not charge for any advice they give or for preparing an IVA. They charge the Nominee Fee and Supervisors Fee which we would have been charged by Payplan. I feel very strongly now that we were let down by Payplan and that they did not fight our corner.
  Thanks for your advice re the 6 years-we have to try again as we have nothing to lose.
• They must have changed their working practice fairly recently then, so happy to be proved wrong on this occasion.
  Do beware of any suggestion to enter a temporary DMP whilst the IVA is going through, and it is still true that Vincent Bond are a Debt Management Company, they do not have their own in house I.P, so they refer cases out. They do, of course, have a very visible presence on another well known forum. The small print on their website also suggests that they will expect a commission of between 80 to 100% of nominees fees. This will severely narrow the number of I.P's that you will have access to, as they are like as not only going to refer you to the one that pays highest commission, most I.P's will not pay more than 50% of nominees fee for a successful case introduction. You may therefore not be getting the best firm for your case.
  Why don't you do your own research and choose your own I.P. rather than having one chosen for you?
• Thanks DorisTrousers. I understand how Vincent Bond work a little bit now.
  When you say research my own IP, I don't really know where to start. Could you offer any advice on this?
• You can google Insolvency Practitioner reviews, but 3 of the top 4 names on there aren't really taking on new cases and the top one only has 8 reviews.
  You are looking for someone with a consistently high rating over many cases (Personally, I never trust anyone that never has a bad review occasionally, doesn't smack of being realistic, but make your own mind up on that) and a firm that will look at the IVA only, no temporary fixes, whilst charging no fees in advance, i.e. no win no fee. Some do now ask for a payment but will refund if rejected which is effectively the same, and also someone that has no qualms about re-proposing for you.
  You may need to speak to quite a few, but trust your gut instincts is probably wisest when making your actual choice.
• Avoid going to a company called Debt Free Direct as well!!
• I used vincent bond (who in my case used PJG recovery) for my IVA(full and final, lasted just under a year). I have no complaints about vincent bond and found PJG recovery very nice to deal with
  Regards
  Martin
• PJG Recovery have pretty much exited the IVA market and have sold their book to Creditfix. The views aired on Creditfix on another forum are well worth having a look at.
• what about step change? are they good? x
• Thank you x
• I can highly recommend step change rather than pay plan. My iva just failed no warning nonegotiating. Left me high n dry as you would say. (Partly my own doing but he ho) . I didn't really want iva anyway but was sort of persuaded it was for the best! I'm looking towards a dmp once I've all the info. My family n friends have dealing with step change and are very positive.
  Good luck