www.iva.co.uk

So as some of you will now, I had a creditors meeting yesterday. All voted in favour but with some modifications.

In all, Knightsbridge quoted me £100 a month at the start of the application and now they want £160. This is leaving me nearly next to nothing to live on.

I'm now seriously considering bankruptcy. Unfortunately, i'm currently 6 months into a car hp agreement. I pay out £255 a month for it. I need it to get to work. Its over a 30 mile round trip per day. Plus going to the supermarket and general driving. If I go bankrupt, would they take the car away from me?

Just finally, they said they could decrease the payments to £120 but stretch it over 6 years. Effectively, i'm paying back every penny of my debt. It doesn't really seem like it has worked out for me.

To be honest £100 - £120 per month is towards the bottom end of being at all viable.

If, as you say, 72 months at £120 would pay back all of your debt, have you considered a DMP with the likes of Step Change ? Of course, even if you did pay back all of the debt, you are not being caned with the interest you would have had to pay, so there is that to consider.

You will almost certainly lose the car under BR. Even if the OR didn't want you to get shot and buy a banger, the lease company would most likely repossess. To be honest I am surprised your creditors didn't have a pop at the car payment !

As Foggy says over 72 months you would be paying back what you owe now - not what you might of owed if interest continued to be added etc.

Over 72 months you would pay £8640 (possibly more if you earnt more). Your car over 36 months is £7920 so if the creditors agreeing they are taking a big hit at this stage.

This does seem a big jump and six years is a long time if you have no assets other than the vehicle. Contact the HP company on a no names basis and aks them about their policy in bankruptcy. If they say they will not repossess it could be something to seriously consider.