www.iva.co.uk

First post so please bear with me if i am asking stupid questions.

I owe in excess of £100k and I am currently awaiting a creditors meeting for a proposed lump sum IVA. Apparently it will be hit and miss whether it is accepted as it is only 15 pence in the pound. Northern Rock have apparently said they will probably accept but extending 6 months to 18 months. I haven't got a clue what the 6 months relates to never mind whay they would want to extend this. Basically if they accept and i then give them all the agreed 15p in the pound, what happens next??? Also once this is paid my mom has said she will give me the money to buy a car as my current one is a lump and costs me £60 a week in petrol. Would i be able to own a better car once the IVA is agreed or wuill they come after that as well at a later date? Another worry is that i have an aunt with cancer and i know i am in her will, hopefully this will never come to me but if it did sooner rather than later what would happen to it?

Any help is greatly appreciated.

hi and welcome to the forum!

sorry i am not an expert just another person with debt problems, but you have com to the right place for help and advice and i am sure a expert will be along shortly

love barb

The extension may be due to you having been self-employed and allowing more time for HMRC to submit their claim?

If you get a new car during the IVA which is bought by your Mum, then this cannot be grabbed for the benefit of the IVA, but an inheritance can - so you will be obliged to hand that over on top of the settlement monies if you inherit during the 18 month period.

Melanie, Thank you.

In your opinion how likely is a lump sum 15 pence in the pound to be accepted. Basically my IP has put together a comparison between a one off IVA payment and my only alternative option which is bankruptcy. In bankruptcy they would not get a penny and in a one off IVA they get £15k between them. I keep reading about Northern Rock being difficult to please however they do seem likely to vote positive. NR debt equates to 24% of total debt approximately.

Also if it is accepted next week what happens next? What restrictions on earnings etc will i be under?

No reason why it should not be accepted - a 15p dividend in a bankrutpcy is deemed to be a good return, and they get the money earlier.

I would certainly put if forward for you and fight for it on the day if I were your IP.