Help!

aaronjg

Hi,

OK I'm ready for the telling off... but here goes.

I'm currently on an IVA, paying 150mnth; I have been for two years and haven't missed a payment.

Now.... I've just had a horrendous break up and fallen into the payday loan trap. Couldn't keep up and now owe around £1500. To top that off the council have just sent me a bill for £700 from 2008. Believe me when I say I was reluctant to get the loans; but I genuinely saw no other option. I was forced with having no where to stay; my family don't live in the UK and my friends are all still at UNI.

This month. My contract phone is going to fail because I owe £90 due to phoning the banks and collections team about this and that. No doubt they'll send me a bill for the remainder totaling around £350 I think.

I'm really not sure what to do? Do I just let it all fail and start again?

I live with a friend. Have no assets and no savings. I am employed but am struggling with all the variations of demands.

I'm genuinely unsure of how to proceed. Everything was easily manageable 3 month ago and now it's out of control and my efforts maybe in vain. Perhaps I was the victim of an easily detachable dual income - Gah I'm not sure.

Any advice would be great. A telling off may also help......

sistafromanothermista

Who is your IVA with?
Hopefully it's not a fee charging company....
Have you spoken with them about all of this?

milliemonster

there are no companies that don't charge fees for running an IVA (even CCCS/Step Change and Payplan)

Aaron, don't immediately think that all this will fail your IVA, speak to your IP as a matter of urgency and I am sure they can come to some solution to enable you to repay the new debts even if that means reduced payments on your IVA for a while

FireWyrm

You are a naughty naughty young man and you are duly chastised.

There, happy?

In the meantime, what do you owe, to whome and when is it due. Details are necessary here to decide what the best option going forward will be.

MrOrchard

You will likely default on the IVA as you have obtained credit when barred from doing so, even if you could keep up the payments on it.

I'd suggest you strongly look at Bankruptcy. Given that you will have done some research when you entered into the IVA you *must* have been aware that there were other options available, rather than payday loans to tide you over.

aaronjg

Hi,

I owe 1000 to one 320 to another and 300 to another. Then the council tax bill of around 700. Plus I can't pay my phone bill (today).

I earn anywhere between 1400 - 1600 a month.

I haven't paid this months 150 so was planning on topping it up next month. usually it's 150 a month.

No savings.

I know I should talk to the IVA people but want to consider my options before I do tell them everything and they terminate it.

milliemonster

You aren't actually barred from having credit in an IVA, not strictly speaking, you can usually have up to £500 with your IP's permission anyway, but it's a moot point, yes Aaron may have breached the conditions of his IVA but it doesn't mean failure is the only option (or bankruptcy!)

At 2 years in, it's in noones interest to fail your IVA now and your IP will want to work with you to try to sort this out to enable you to continue, if you want to that is.

Your other options would be to propose a new IVA, go on a DMP or bankruptcy, but I urge you to speak to your IP first

MrOrchard

milliemonster wrote: »

You aren't actually barred from having credit in an IVA, not strictly speaking,

I was specifically barred when entered my IVA in 2005 with Shaws (now Payplan), so agreements do vary.

milliemonster

That was 2005 though MrOrchard, since the IVA protocol in 2008, you are generally allowed credit up to the value of £500, but as I said, for emergencies only and with express permission of your IP

MrOrchard

milliemonster wrote: »

That was 2005 though MrOrchard, since the IVA protocol in 2008, you are generally allowed credit up to the value of £500, but as I said, for emergencies only and with express permission of your IP

I stand corrected! Thanks for the update, though the OP is still likely in breech.

aaronjg

Eeeek. Question? If I do ring up and tell them... 'OK here it is... My bad' and they fail my IVA. Can I start again. Admittedly it starts again and I'm two years behind but to be honest; I've probably lost that already worrying.