Payplan and IVA HELP!! PLEASE!!!!

ach_2

Hi

I recently contacyed Payplan about my debt. My situation is:

I have approx 50,000 of unsecured debt including credit cards and loans. I also have a mortgage of approx. 96000 for a house which is worth approx 110,000. My income is approx. 22000

I have NEVER missed a payment and have no defauls or CCJS on my credit file but I can see thing s in the near future getting harder.

Payplan have taken my details and are calling back t omorrow for more in depth figures etc. and are going to suggest a plan in the next couple of days. I suspect they will offer an IVA? Has aynone had any dealings with Payplan and IVAs?

Also, due to my occupation I am not allowed to go into bankruptcy or have CCJs. Defaults may be accepted. Do you know if IVA's will cause me to have defaults?

Are there any other options you think Payplan may suggest other than an IVA for this amount of debt?

Thanks for your help guys, I REALLY appreciate it. I feel totally ashamed of myself...it took a lot of courage to call Payplan and speak to someone....

Thanks
ach

System

They may suggest a Debt Management Plan (DMP). My was similar to yours is now and that is what they recommended to me. Post your Statement of Affairs (SOA) here and people will help you refine your outgoings.

Lenny

ach_2

thanks for the advice

do DMP's involve going into default. Did you monthly outgoings go down much? what do i include in my SOA?

CLAPTON

a SoA includes

your income

all your spending except unsecured debts (including e.g. all the annual and one offs spends (divided by 12 to give a monthly amount); absolutely everything you spend
a sub total would be really nice

debts
say amount of debt, minimum monthly payment and APR
totals would be nice

say your general situation, any children, savings, special situations, do you have PPI on the debts, what is your job and why can't you go bankrupt or have CCJs.

ach_2

ok thanks, does anyone know though if DMP's or IVA's cause defaults?

CLAPTON

defaults are caused if you dont maintain your payments according to the T&Cs....so yes they (DMPs and IVAs ) do cause defaults

ach_2

anyone had any dealings with payplan. are they 'kosher'?

alfie571

Hi there. I'm in the process of beginning a DMP with Payplan. We have around £28000 worth of debt and hubbys salary is around £21000. They sort out what you spend on essentials, such as priority bills and food and travel exps etc. The remaining money they deem as being a payment you can make every month to your creditors. We are paying £345 every month and to clear debts will take approx 6 1/2 years. We can pay extra or renegotiate this amount if it is too much. I am expecting this month to get letters from creditors saying that we have defaulted. We've never really missed any payments before. Payplan have told us once we get a default letter this will stay on our credit records for 6 years. After that it is wiped clean.
Hope this helps, I'm new to this myself!!!

ach_2

that really helps thanks! but once youve defaulted cant the creditors invoke CCJ's etc? thats what worries me

Zulu_Dawn

Hi Ach

I am in a similar position to you and have a self admisitered DMP supported by CCCS. I can't comment on an IVA but I'm sure there are other who can and will.

You will definitely get defaults and that will harm your credit record. Your credit record will also record that you have agrees to reduced payments and are on a DMP.

Default notices are unquestionably a bit scary but are the precursor to getting interest frozen which is great. Just keep communicating, stay in touch and ensure you understand what you should be doing from Payplan or whover you decide to go with.

Your credit record will then take six years to clear. That said, you will know how keen people are to lend you money so I understand this is not as bad as you might think. Plus you are looking to get debt free so you may not need to worry about this unduly.

My understadning is that CCJs are unlikely provided that you do as you say you will do, are honest in your assessmanet of your ability to pay and maintain communications at all times.

A DMP is the best thing I have ever done. It has given me hope of a debt free life after 26 years spent accumulateing debt and living in its shadow.

You will have ups and downs but it will be worth it.

Good luck

ZD

ach_2

thanks a million....do you still get charged fees by your creditors, i.e. late payment fees etc?