Posted: Tue Aug 16, 2011 6:20 pm
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?
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?