Payplan IVA first steps

Hi all

Have been on the DFW forum and have been directed over here.

I have approximately 50k in debts through 5 creditors. I spoke to payplan today and they have recommended an Iva rather than a dmp as a dmp could take up to 26 years to repay!! Horrific!

Payplan are proposing I pay £268 a month towards this debt. My maths is rubbish but I have worked it out as almost 30p for every £ but I may be wrong.

I live alone currently and have a mortgaged flat. With the northern rocks 125% together mortgage which hasn't helped my problems.

Payplan are getting their iva people to call me over the next few days.

In the interim payplan have advised that I cancel any direct debits with my creditors and if they call, I've to explain I'm going down the Iva route.

I can't help thinking this is all too good to be true.

I'm going to bed relaxed tonight, not filled with worry on letters phone calls and threats from creditors may be coming my way.

Just have to pray northern rock do accept the I've s I have read a few stories where they have rejected the proposal.

Dont wanna get my hopes up


  • FoggyBrain_2
    Hello and welcome. 30p sounds a reasonable dividend. The fly in the ointment, as you rightly surmise, is likely to be NR. Their usual trick is to extend the IVA to 6 years (still far better than 26! ).

    While I was waiting for my proposal to be prepared I stopped all payments and only got a couple of phone calls. I simply said I was doing an IVA, gave them the company details and they were ok.

    I would suggest that you contact a few companies and have a chat -- you will be entering into a five year relationship, so you need to find an IP you are comfortable with.

    Best of Luck.
  • reviewbyme
    An IVA will take care of the unsecured debt but speak to Northern Rock before cancelling any direct debit as payments will be covering both the mortgage and the unsecured loans.

    This process can also take some time to go through so be prepared for calls from your creditors meanwhile.
  • littlefaster
    Hi thanks everyone.

    I did speak to Northern Rock last week to find out what portion of my monthly payment goes to my Mortgage and what goes to my Unsecured Loan... would I be right in thinking that this month I should just pay the Mortgage part less the unsecured loan?

    I sent a letter to all my creditors yesterday explaining my situation and that I am going down the IVA route. I also sent a token payment to each of them in the meantime. I did actually phone up two of my creditors also to cancel direct debits and suprisingly their staff were lovely once I explained and even wished my luck in sorting things out! A change to just a week back when someone from the same company had me in tears on the phone with their pressure tactics! Madness.
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