IVA uncertainty

kjbrownie

Hi guys - I'm new to this forum, and to the website (so please be nice)

I'm currently halfway through an IVA with Paypal and of late, I'm beginning to wonder if it was the right decision or if indeed I'm being treated fairly.

My total debts amounted to, well I'm not sure as looking back I've had figures ranging from £55810.95 to £40990.00 - massive difference I know but I firmly believe its the lower of the two. Regarding the amount I'm paying back it started out at 41% for the creditors under higher total now its 53% that they will get back.

My thing is, that Payplan over the course of the arrangement will have taken £11466.70 and my creditors will have received £21,849.05, halfway through they have only received £6804.09, payplan have received £7122.39 - not a bad crack for them really.

With the countries situation as it is, I'm increasingly struggling to find my monthly payment of £606.35 (was £406.00 for 14 months due to car finance) and have had to take a number of breaks (7 in total since starting the IVA in Jan 2007 - these will be paid at the end, on speaking with the Payplan, my only options are to put up with it, reduce the payments but extend the term)

I'm just wondering if others have had the same issues, how much on average are you paying back per month and the amount of debt. I'm struggling big time, following a number of life changes (new job, lower income, moving out - all while still trying to pay my monthly payments)


Any advise is appricated, and I will be talking to Payplan again.........

thanks

skintflint103

Do you feel your options were fully explained at the outset? do you own property, what do you do for a living ,is someone else involved?

kjbrownie

Not really - I suppose I was just in such a desperate state, anything was going to be better than being constantly hounded for money I simply didn't have. (looking at it now, I would have been better going bankrupt - but in my naivety I wanted to pay as much as I could back as much as I could)

At the outset, I was living with my parents, now live with my OH (his house) I pay towards bills and mortgage, however with his trade work is scarce and he has been out of work more than in for the past 6 - 12 months, so money is stretched tighter than ever. I've changed jobs while I've had my IVA, was initially in insurance, now in education (but thats not really relevant)

I'm just not sure if I'm being given the best advise currently, and what options are open to me (really don't want to extend the term, although it will go on for a further 7 months after my proposed end date, due to payment breaks I've had to have due to massive bills - because no matter what people say, there are things that happen day to day that you cannot plan for and that the budgets that are set within your IVA do not allow for)

God I sound like a right moaner - but I'm at my wits end all I think about is money and how I can earn more (not looking good with job as redundancy threats are just around the corner - that or reduced salary, both a bad option)

thanks for asking though.

Choo_Choo_4

KJ - you're not a moaner ... it just sounds like you've been trying to deal with this all on your own for too long and it's coming to a head.

First and foremost if you're OH is out of work then no wonder it's tight going - you HAVE to speak to your IP and explain that you simply cannot meet the same monthly payments and see if they can reduce these for you. They might ask for proof of any changes but I'm sure you'll be able to give them plenty of bills etc ...

You're right - the IVA doesn't allow for any luxuries or mishaps (other than the £50 per month or so for contingency) but if the washing machine goes or the car needs a new clutch then this isn't usually enough to cover it ...

But it SHOULD allow for you to be able to make these payments and if you have a reduction in wages then this WILL affect the IVA affordability and SHOULD be revised (at least looked at) so go back to your IP for sure and explain (again if need be)

I'm guessing that if there are possible redundancy threats and you're not there too long that you won't really get any form of pay-off?

You're half way through your IVA already and have (from what I can see above) kept things up-to-date apart from the odd month here or there where something might have been thrown at you ...

If redundancy looms or further salary reductions are on the cards tell the IP about it now - advise them... you might be able to come to a F&F arrangement with creditors but with your OH out of work I'm not sure if you would be able to raise any funds - if you're already half way through IVA then you might be surprised at what the creditors would accept to complete it early ...

Don't panic KJ but definitely get back to the IP and get negotiations under way

trudij

KJ - agree with the above, talk to your IP - they are there to HELP you....

hope its ok xx

kjbrownie

I call the IP today, but seemed to hit a few stumbling block, they couldn't answer my questions (but I'll keep on until I'm confident with what is being said)

Thanks for the advice and the support.... hopefully things will get better, or they will come to a head, either way it will sort.....

thanks