Questions about Individual Voluntary Arrangements and Insolvency.

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ByShameless
#44823 I went to the KPMG forum on IVAs a few weeks ago.

It was a open forum of IPs and creditors.

KMPG as some of you will know are a big firm of accountants they do the voting on IVAs for a large number of the big finance houses'.

They are getting on average 100 creditors meetings for IVAs per day rising to 180 per day on the last few days of the month. Which is just huge volumes.

There were lots of things discussed about who’s happy with what and who’s not etc.

The main bit of information which was of use was that most creditors have now done away with the old "25p minimum rule"

Previously many IPs would not propose an IVA for someone who’s dividend in the IVA was less than 25p in the £1.

If your debts are higher (say 50k plus) they have said they would not be adverse to accepting IVAs at say 20p in the £1.

Anything less and they think it will be pushing it.

The IPs put forward that something is better than nothing and the creditors agreed which was surprising.

For years IPs have just assumed this is a rule and obviously it now appears not to be the case.

There was also talk about equity on homeowners and setting fixed equity amounts at the beginning of an IVA so debtors and creditors don’t get a shock come year 4 and maybe introducing equity into the IVA in year 3 instead of the usual year 4 which depending on how much your mortgage would increase by would cut an IVA down to 3 years!!! Obviously only for homeowners this bit.
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ByOLDGUY
#44840 hi mathew

Interesting post.

I have been expecting some loosening of IVAs for some time because of the changes in bankruptcy which have made them so hard to recommend. All we need now is for PWC to follow suit and we may end up doing a few before the law changes yet again and we are competing with Tesco's.

Regards
ByS&M
#44877 Hi Matthew

It seems to me that the goalposts are forever changing.

Last year I was told by one of the big 4 that one of the banks who gave their proxies to them had a minimum dividend requirement of 25p in the £. That was less than six months ago.

S&M
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ByShameless
#44886 Well PWC KMPG DWF and Grant Thornton were all there and they all agreed to it as well.

In fact DWF and GT were pushing it for some strange reason!!!

There were aover 250 people at the forum so it was a big event
ByS&M
#44890 Matthew

Are you saying that PWC KMPG DWF and Grant Thornton were pushing for abolishing the 25p in the pound rule or they were all pushing to have the myth scrapped so that perfectly good IVAs offering less than 25p in the pound were to be considered rather than simply rejected because they were not offering 25p in the £.

Just want to clarify the point.

Did KPMG provide any literature at the Forum.

S&M
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ByShameless
#44897 No they were pushing to get rid of the myth.


They used the usual lines of every case on its merits but in principle on higher debt cases (50k + was flung about) they are more than willing to consider lower than the old 25p in the £1 rule.


Lynne Taylor is supposed to be emailing everyone who was there with notes and action points of the meeting although its not got here yet and the meeting was on the 14th.

Once we receive it I would be more than happy to forward you a copy.
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