I am in the last stages of setting up my IVA and the creditor meeting is next week, after a lot of issues raised by two of the creditors my payments look likely to now be set at £975 / month.
This will in effect give all the creditors a 100% return with no shortfall, even after deduction of the IVA costs (~£8500). I am not 100% happy with this but I can just afford the payments so ultimately it is fair and at least the interest costs and legal actions do cease.
My IP has calculated that in Bankruptcy my payments would have been £200 / Month for 36 months giving a return of only 3% to the creditors, however although the house is in negative equity for IVA / Bankruptcy purposes I did not wish to take the risk and feel better trying to honour these debts and pay them off.
A few questions I have?
1. To date these two creditors have been very stubborn, are they likely now to accept this last offer?
2. Some of the other potential creditors are Personal Guarantees which have as yet not been called up as they are covered by equipment from a company insolvency which has yet to be sold, It is likely that these will not be called on as the equipment will easily cover these costs, if not called these will significantly reduce my debt to the point where I would have paid it off by Month 36. What happens in this case?
3. How long after the IVA is agreed at the creditor meeting do all interested parties have to place their claim / value of claim? If they have until the end then I will have potentially paid in over 20K more the debt is?
Ive read your post with interest as I've never come across someone whom can offer 100% + fees, so I feel unable to answer your questions. There will be posters here whom will though.
I'm just wondering about the bankruptcy part, from my little knowledge on the subject, I know they have tightened up on allowances, and 975 down to 200 is a big difference.
Please bare with us, someone will be along soon.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Welcome to the forum. Can't help you with the creditors but with bankruptcy, if you have di over £20. Month then you will pay the lot over for three years so it would cost you a lot more than£
£200 a month.
Sharing from experiences of dealing with debt
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