Mike Sloper Interview

Date: 28th February 2011 Location: Offices of RSM Tenon Debt Solutions – Manchester Interviewee: Mike Sloper

1. How would you describe your company?
   
   RSM Tenon Debt Solutions are based in Manchester and we’re part of RSM Tenon, the seventh largest accountancy and business advisory firm in the UK. We are the UK member of RSM International, a global network of accountancy firms spanning more than 70 countries worldwide.

   Our advisors are highly experienced and sympathetic professionals who are passionate about finding solutions for people in debt.

2. Where does your company fit into the IVA industry?
   
   We have gained a reputation for providing our clients with a first class professional service. We know from experience that our clients benefit from a tailor made solution rather than a one-size-fits all approach and we believe in quality, not quantity.

   RSM Tenon Debt Solutions is a founder member of the Debt Resolution Forum that aims to promote professional standards throughout the entire debt solutions industry.

3. What geographical area do you cover?
   
   From Manchester we specialise in helping residents of England, Wales and Northern Ireland.

4. What regulation are you subject to and how does this protect your clients?
   
   Our Insolvency Practitioners are licensed and regulated by professional bodies including the Insolvency Practitioner’s Association and the Institute of Chartered Accountants of England and Wales. As well as our own internal reviews, we are subject to regular external reviews and inspections, so our clients have the peace of mind of getting the right advice from a highly regulated national firm.

5. What happens when a potential client gets in touch with you for the first time?
   
   One of our expert debt advisors will call to talk through the client’s situation. They will explain all the available options and advise the client on the approach that best meets their individual requirements.

   Once a client has been given all the information and advice they need to reach a decision on the solution that best suits them, they will be introduced to a specialist who will guide them through the process.

   If that solution is an IVA, the specialist will assist in drafting the IVA proposal, while at the same time explaining the process and the terms of the arrangement. Our experience means we can help our clients to ensure the IVA proposal has the best chance of being accepted by their creditors.

6. Are there any common questions or concerns that potential clients raise with you?
   

   We know from experience that this can be a very stressful time for potential clients. It’s easy to feel alone when you are in debt, but we have helped thousands of people find a solution and it’s important to us that our clients fully understand the ins and outs of every solution we offer.

   Most IVAs will be for a five year period. One of the most common questions we are asked is what will happen if the client’s circumstances change during that time. If circumstances change for better or worse during the IVA, our specialists will help the client to put forward a variation proposal to their creditors. This could be anything from suspending payments for a period of time while they look for work, to offering a lump sum payment ending the IVA early after a lottery win.

7. The subject of IVA’s can be confusing. How do you go about ensuring that your clients fully understand the whole IVA process?
   
   We confirm understanding at every stage of the process with the client. Before the proposal is put to creditors, we send our clients a checklist to sign to make sure everything has been covered. We also send them a booklet called “Is a Voluntary Arrangement Right For Me?” which is produced by R3, an independent professional body. Our specialists encourage clients to ask questions and they are always just a phone call away.

8. If an IVA client has equity in their home, or owns a car of significant value, how will this be dealt with by an IVA?

   Unlike bankruptcy, an IVA will protect a client’s home from repossession and will mean that unsecured creditors cannot take action against them. As long as a client keeps up repayments on their mortgage and any other secured loans, there is no risk of repossession. If a client has equity in their property, creditors will usually expect the client to make attempts to re-mortgage towards the end of the IVA and pay money into the IVA. There are however a few things which would be considered at that stage such as property values, available equity and affordability, and the amount paid in would depend on the individual case.  

   Sometimes creditors might expect a client to downsize if they are driving a very expensive car, but that depends on the client’s circumstances and the creditors involved. Our experience means that we can advise clients on what their own creditors might expect in their particular situation.

9. What is your experience of whether an IVA will affect someone professionally?
   
   Most people’s jobs won’t be affected by an IVA, but of course there are always exceptions. If a client is a member of a professional body for example, we would always advise them to check whether an IVA will affect their accreditation. We recommend that a client check with their HR department if there’s any uncertainty.

10. Do you charge upfront IVA fees?
    
    No. We take our fees from the monthly payments proposed in the IVA. Our fees are fully explained in a letter that we send to all clients at the beginning of the process and we will explain how and when fees are charged over the telephone.

11. How do you determine what your fees to handle an IVA will be?
    
    The fees we propose are based on the complexity of the case and are discussed with the client. The client’s creditors will also decide whether the fees are appropriate when they consider the IVA proposal.

12. How often do you direct people towards debt solutions other than an IVA?
    
    Whenever there is a better alternative.

    We discuss every option with every client. We then send them a letter explaining each option based on their own particular circumstances. Unlike some other companies, we offer a range of solutions, not just IVAs.

13. What percentage of the IVA cases which you have proposed in the last year have been become accepted by the creditors?
    

    Approximately 90% of proposals we put to creditors were accepted in 2010.

14. Once an IVA has been accepted, what contact will continue with your client during the term of the IVA?
    
    That depends on the client. We review a client’s circumstances at least once a year and are required to send a progress report to the client and their creditors, but we are always available if a client needs us. We want every IVA to be successful and so we stay in touch throughout the arrangement.

15. Why have you chosen to become one of the IVA Advice Forum experts?
    
    I know that people are sometimes embarrassed or wary of asking for help with debts. There’s no such thing as a silly question and the forum is a great place to post questions that they otherwise might not ask.