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My creditors meeting took place and with a vote of 79% in favour my VIA is approved and I have verbally agreed with the following stipulations 1) I pay 50% of any extra earnings into the plan 2) I stop paying into my company pension. I'm currently earning on average an extra £500 per month in both commission and overtime. If I add 50% of this to my agreed repayment of £255 per month I would be debt free in just over 5 years carrying on with my current DMP and my creditors would recieve full payment of monies owed.

If I accept the stipulations and enter the IVA my creditors will be getting circa £6k less and I will have 5 years less payments on my pension. I am now totally confused as to what to do and also not sure if my verbal agreement to the new terms via the telephone today is binding.

Hi matt

If you are having doubts, tell your IP to adjourn proceedings for the next 14 days to allow you to think things through carefully. You will need to make that call first thing tomorrow or it may be too late, as your verbal agreement to the IVA terms is technically valid - especially if your IP has issued his Chairman's Report to creditors.

Don't forget that with a DMP, you have no legal protection from creditors, and that they will continue to charge you interest, so you may not be debt free by the time you currently anticipate. Pension planning is, however, important - and depending upon your age you should take a view whether it is more beneficial for you to stick with the DMP and continue with your pension payments.

A dividend of 79p in an IVA is very high, and it is questionable therefore whether you really need the procedure at all.

My own view is that if you do not need to revert to formal insolvency proceedings then don't, but some people do like the certainty that they are fully protected legally, and that they can see a definate exit point to their creditor repayments.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk