HSBC’s attitude towards IVAs has been well documented for some considerable time now, and shows no sign of improvement.
HSBC’s influence on an IVAs chances of success are based around the percentage of the total debt HSBC own.
In IVA proposals where HSBC own over 25% of the total debt owed by the debtor they have control.
HSBC will only accept an IVA if the total dividend paid to them through the IVA exceeds 40 pence in the pound, after the costs of the IVA have been deducted.
By implementing this artificial ‘hurdle rate’, HSBC are effectively reducing the number of their clients who will be able to put forward an IVA.
It is hoped that HSBC will accept their adopted position is unfair, and Insolvency Practitioners are challenging their stance everyday, but so far there is no indication they will change their mind in the short term.
Each creditor has a different policy when it comes to IVA’s. They each have specific criteria, which must be met before they will consider the IVA as an option.
So if you want to have a chat with one of our IVA advisers to establish whether you meet the necessary criteria for your creditors then call 0800 088 7503
Or fill out our quick contact form so that we can call you back to discuss how HSBC view IVAs in more detail.
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