Think iva is worse than ever......is it easy to come out of an iva?

faye1976

HI

How hard is it to come out of and IVA and contact the creditors ourselves to make payments? Payplan have just done our first monthly review, a year ago our surplus was £287 now its £194. Payplan will not reduce our monthly payment. We are still borrowing money from family members each month to see ourselves to pay day.

The T&C's on paperwork state that Payplan will pay 28% to the creditors!!! Interest has not been frozen, we cannot sell house due to restriction, we cannot remortgage over 85%. Don't know how we will find the other 15% by Feb 2012.... OH and to top it off we are in negative equity but after the 7 years is up we have to give any equity over. Bankcruptcy is not an option as OH will lose his job.

Can we contact the creditors and ask for statement of account and then give our proposal of £45 each month to each creditor, which is a damn site more than what they are getting from Payplan.

We really need to do something soon. or we will be heading for bankcruptcy and my OH will be out of a career. Don't really want to go back to CAB as they were the ones who recomended we go IVA with Payplan!!!!!!

Please help

Faye

[Deleted User]

Hi,

I'm sorry I don't have any information about IVA's but you could contact one of the other debt charities if you want another opinion (from someone who can comment on the details of your specific circumstances). CCCS or National debtline?

HTH

D9

FoggyBrain_2

HI there. First off ... are you in an IVA or DMP ? It sounds more like a DMP to me -- which might not be the best solution.

If you are in an IVA then interest HAS to be frozen, by law! It is easy to get out of an IVA -- just faile to make three payments --- however, this will bring you right back to squaree one and the creditors will not, in all probability, be open to discussion at that stage.

Anyway -- before we go any further --- check if you are in an IVA or DMP

Charco_2

Foggy is right, check to see if you are indeed in an IVA and not a DMP... if it is an IVA then you may be worrying about a few things unreasonably (your second paragraph).

When it comes to your surplus income however Payplan are being unreasonable (if you are in an IVA). COMPLAIN! Ask them for the details of their regulators - that will get their attention.

Payplan have very easily risen to be my most disliked company out there - in my view, simply a greedy selfserving company.

You have the right to offer whatever you like into your IVA. It is not up to Payplan to accept or reject this, they can comment on it (they can even ask you for an extra - reasonable - fee if they don't feel that they will get paid for doing a variation of your proposal) but they cannot simply refuse your offer (or refuse to offer your offer!)

If all you can afford is £194 then where do they expect you to come up with £280 from? You are supposed to be dealing with your debt, not making it worse (and lining Payplan's pockets in the process).

I'm surprised out local friendly Payplan representative has not come along to comment here but she should be along shortly... let us know how that works out!

Payplan_company_representative

faye1976 wrote: »

HI

How hard is it to come out of and IVA and contact the creditors ourselves to make payments? Payplan have just done our first monthly review, a year ago our surplus was £287 now its £194. Payplan will not reduce our monthly payment. We are still borrowing money from family members each month to see ourselves to pay day.

The T&C's on paperwork state that Payplan will pay 28% to the creditors!!! Interest has not been frozen, we cannot sell house due to restriction, we cannot remortgage over 85%. Don't know how we will find the other 15% by Feb 2012.... OH and to top it off we are in negative equity but after the 7 years is up we have to give any equity over. Bankcruptcy is not an option as OH will lose his job.

Can we contact the creditors and ask for statement of account and then give our proposal of £45 each month to each creditor, which is a damn site more than what they are getting from Payplan.

We really need to do something soon. or we will be heading for bankcruptcy and my OH will be out of a career. Don't really want to go back to CAB as they were the ones who recomended we go IVA with Payplan!!!!!!

Please help

Faye

Hi Faye,

Hopefully I will be able to shed some light on all of this.

If you are definately doing an IVA then ALL interest and charges have stopped. So if your creditors are telling you that they are still adding it on then forward that to your case officer, your IVA will only last 60 months regardless of what the creditor may be saying at the moment.

You say your surplus has dropped, if there any particular reason why it has dropped so much? Your case officer should have explained that you can rearrange another creditors meeting for you for the new surplus, however your creditors will need to agree to the new payment amount.

I would strongly suggest that you contact your case officer as soon as you can and discuss this with them and talk about your options. Its hard for me to really discuss your case without having all the information.

I hope this has been helpful and please feel free to let me know if there is anything else I can help you with.

Thanks
Lizzy.

FoggyBrain_2

Faye, on re-reading your original post I feel that you have not understood the full ins and outs of the IVA. I think the 28% is the dividend (that is the amount of debt you are expecting to pay back over the 5 years (where did you get 7 from ?). Equity, if there is any significant amount at the end will, in all probability, be addressed by an extension of 12 months payments.

Please do as Lizzy has suggested and speak to your case officer at Payplan --- get him or her to explain it all to you and don't be afraid to ask as many questions as you need.