IVA repayment cheaper than bankruptcy?

BabyZim

I think at present I would just prefer to have lower monthly repayments, no upfront fee and creditors off my back LOL

I've been employed with same company for over 11 years, so can't see that changing and affecting the IVA and causing it to fail at any point.

I guess I'll just fill everything in, provide the documents and wait to hear what happens.

Charco_2

Are GT charging an upfront fee?

BabyZim

No, just the £255 for 60 months. Give or take changes in circumstances etc.

Charco_2

That's ok, I didn't think they did charge an upfront fee so I was a little surprised.

To be fair your I&E does look quite generous to you, for the sake of an acceptable dividend the most you could chalk off that would be about £20/£30 but I think it's more likely that your creditors will want an uplift of about £20/£30 when it goes to meeting.

BabyZim

My creditors meeting is now planned for 18th February.........really not sure which way it will go, but at least the crazy phone calls have stopped.

I have everything crossed! x

Charco_2

Good luck!

Any reason it took three months to get this far? Have you been making payments in the meantime!

BabyZim

I wanted to get Christmas, New Year and my birthday out the way, sent forms back middle of February. I made a couple of payments, but nowhere near what was required.......Just going to have to see what happens, main creditor is Lloyds (Credit card and bank loan).

BabyZim

They want me to reduce my workplace pension contributions from the maximum (platinum level - Benefits builder plan) to the lowest level. This is from 9.5% to 5.5% and I think works out about an extra £100-120 a month on top of the agreed £269.

Perhaps some of you clever people can work it out better - from last payslip.....Salary £2925.96 (before tax) - Pension adjustment £267.23 (paying 9.5%) if in future I paid 5.5% what extra money would I be paying toward the IVA????

I have about £43K of unsecured debt with two creditors and live on my own in a rented house.

And of course, they re-negotiated Grant Thorntons fees! LOL

First direct debit due to go out 18th March, that was quicker than I thought, but frankly I'm glad to get it all underway.

Thanks to everyone for your help and comments in the past xxx