IVA and Stopping Direct Debits

Elaine1957

Many thanks for the reply I've been with pay plan for about 5years now they are taking £273 a month, I've recivied a letter today that one bank have not received there payment so I've wrote off to pay plan myself
Thanks again

Elaine1957

I'm with IVA have been for 5years and it's wearing me down, I know it's all my fault this debt but I'm working part time and £273 a month it's a lot of money to take from my wages, should I inform PayPlan about this
What it's doing to me.

judojub

Elaine1957 wrote: »

I'm with IVA have been for 5years and it's wearing me down, I know it's all my fault this debt but I'm working part time and £273 a month it's a lot of money to take from my wages, should I inform PayPlan about this
What it's doing to me.

I did wonder if it was a DMP you were on?
If you are in an IVA then surely it should not be far off coming to an end now? IVAs are five, maybe six years if you have equity to try and release but not often do they go beyond 6 years. If you are in an IVA and are struggling you should definitely speak to your IP.

debtfree2016

Hi Eliane, it does sound like you are in a DMP rather than IVA. You should contact Payplan to confirm this and that you are are having difficulty meeting your payments.
best of luck

joesaunt

marklinard wrote: »

Thanks guys, i'm at step 1 of 5 at the moment. I was told to make small token payments to my credit cards on the basis that they might reject my offer as i had been meeting my payments and then suddenly stopped.

Hi

When I had "the phonecall" after my creditors meeting last week, the guy said my creditors were more ready to accept my proposal as I had never missed a payment and because I had paid a token amount "£1 to each, in the last month" this went in my favour!

Not sure if this is any help at all!

Good luck

xx :j

blades_man_2

judojub wrote: »

Yup, unfortunately more and more people are finding themselves in the thick of such financial trouble that IVAs and Bankruptcy are routes that more and more of us will be taking

Judojub, I agree with your remarks however, if too many people went down the IVA route don't you think that would be a bad thing because the banks may lobby and try to get IVA's binned (losing £ millions along with the £ millions they are already going to lose in PPI payouts)? It's a bit like if nobody in the country worked then there would be no money in the Government coffers to pay anyone benefits therefore most of us have to work.

I have significant debts but am trying really hard to pay these off. I am not against IVA's but would be gutted if I knew someone had taken out an IVA who was not struggling as much as I am. If that makes sense.

judojub

blades_man wrote: »

Judojub, I agree with your remarks however, if too many people went down the IVA route don't you think that would be a bad thing because the banks may lobby and try to get IVA's binned (losing £ millions along with the £ millions they are already going to lose in PPI payouts)? It's a bit like if nobody in the country worked then there would be no money in the Government coffers to pay anyone benefits therefore most of us have to work.

I have significant debts but am trying really hard to pay these off. I am not against IVA's but would be gutted if I knew someone had taken out an IVA who was not struggling as much as I am. If that makes sense.

Hi blades_man.
I would be very surprised if the banks went down that road. A return on their lending is better than no return at all for them. For all of us that are/have been struggling financially just think of the amount of interest the banks have reaped from us through loans/credit cards etc. As for PPI, if you try and reclaim that whilst being in debt and you are successful then you wouldn't see that money. The banks would just use it to offset how much you owe them. If you try and reclaim PPI whilst in an IVA, again, you wouldn't see any of it. It would be captured by your IVA to go towards repaying your creditors. I am sure the high rollers at the banks don't lose that much sleep at night!
As for taking out an IVA whilst not really struggling as much as the next person well, it just doesn't work like that. You have to be insolvent. More money going out than coming in. Having to use credit to pay for your essentials (in my case towards the end, using credit to pay credit, robbing Peter to pay Paul):(
I tried to work out ways of being able to repay my debt. I had never missed a payment on anything in my life, but got to a point where I just couldn't do it anymore.

An IVA is NOT a way out of repaying your debt. It is not an easy ride and for the 5/6 years that you are in it, you will always owe the full amount of your debt. I see an IVA as the way that I can repay my debts to the best of my ability with what money I have.

FoggyBrain_2

I don't think the lenders will get IVA's barred (which would be a self defeating move, as they will just push more people to BR and then get even less return). Possibly, we might see IVA's being even more regulated, as they can vary quite a lot from IP to IP still, even after the introduction of protocols.

What is more likely is that creditors will get their acts together and tighten up on lending criteria. Make credit harder to obtain (or at least the levels of credit harder to amass). Which will be no bad thing.

spaceman5

Elaine1957 wrote: »

I'm with IVA have been for 5years and it's wearing me down, I know it's all my fault this debt but I'm working part time and £273 a month it's a lot of money to take from my wages, should I inform PayPlan about this
What it's doing to me.

this does sound more like a DMP(Debt Management Plan) rather than a IVA, as if you had been in it for 5 years it should be over by now, unless as others have stated you could not release any equity from your property, mind you in current climate i would be very surprised if you had an equity to release, in which case it would be extended to 6 years, have you been having yearly reviews with payplan, reviewing you I&E each year, if not then you are almost certainly in a DMP, you need to contact paypaln and find out exactly what you are on

debtfree2016

How great is this... just about to enter and IVA and one of my Creditors has just increased my credit limt by £2.5k without any request.... you have got to laugh... and they wonder why it's easy to get into debt....
Don't worry not using it.....