He said looking at my debt a total of 35k he imagines my creditors would want a minimum of £300 a month, my income is an average of £2750 and outgoings come to about £2600 so £150 would be about my region of payment (which would work out at about 10p/£) which the IP feels wouldn't be worth the creditors time after my IVA fees.
His second issue was my pension payments which I discussed on here the other day, I pay a minimum of 9.2% into my pension which is about £200 he said he has spoken to a lawyer and they are both of the opinion that I wouldn't be allowed to have the luxury of such a high pension payment in an IVA whereas in bankruptcy I would, or in any event it would only be an issue for a year rather than 5.
I told him about the chat I've had on here and how independent IP's may be better but he's said you may find that stepchange are firstly only going to charge you in the event of an IVA being accepted, and secondly may have more sway with the creditors. He said if stepchange can secure you a £150 payment and protect your pension to go for it but if not bankruptcy is probably a better option.
He has put me in touch with a mortgage advisor to explain the likelihood of me getting a mortgage in future in the event of either bankruptcy or an IVA. (I currently rent.)
In any event he has said write to all my creditors, ask them to freeze interest and to offer a minimal payment but for now to cancel all my minimum payments
I am quite confused now as to what to do for the best. Any suggestions or similar experiences woyld be greatly appreciated, or if anybody knows of an IP that it may now be worth be contacting please let me know.
Did he work out those outgoings correctly .. or are they a stab in the dark ? Have YOU actually sat down and worked them out properly --- from my own experience, what you think these things are and what they actually are on paper are not always the same thing !
Try to have a word with Lisa Thomas memberlist.php?mode=viewprofile&u=31774 or Cambridge McDuffy memberlist.php?mode=viewprofile&u=8021 or Keith White memberlist.php?mode=viewprofile&u=44116
Stepchange apparently have a repayment ethic so you may be encouraged to go for an IVA over bankruptcy, if it gives a better figure to creditors. I couldn't do bankruptcy due to work, but would have probably been better off doing that if it wasn't a problem at work.
Your pension scheme contributions are pretty much defined by your contract.
Try and claim any possible PPI before going into an IVA as you might find that what you get back stops you having to go in.
Also, if you need a car for your job see what the options are with any NHS leasing scheme.
Cdawson1 wrote:I have no assets so will be purely contributions based, to be honest I don’t know enough about either to really know what to do for the best, I’m worried that in bankruptcy my account will be frozen
Your Bank account could be frozen in both an IVA or Bankruptcy so it's usually advisable to open up a 'basic' bank account with a different bank in advance as an alternative option should that happen.
more info here
and I actually won’t end up being discharged for a lot longer than a year,
Discharge from Bky is a year (as long as your discharge is not suspended for non-cooperation for example) but payments may last for 3 years (although in an IVA they could last for 5 years depnding on which terms you use and what makes the dividend attractive enough for creditors to approve it)
more info here:
I’ve been told I could have to pay a lot of money for at least 3 years
Not a lot of money - just what you can afford from your disposable income. It may be more in an IVA - possibly 5 years of payments.
and my landlord and employer will be told
Your landlord would only be told if a) they were a creditor or b) you were not cooperating with your Trustee and providing them the details they need regarding your rental payments and tnancy/lease.
Your employer will not be told but it could affect your employment, depending on what you do for a living and the terms of your contract.
If you don't own any assets BKY may well be the better option for you.
More info here:
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