Not happy with IVA

SPELLKASTER

i got an iva with debt free direct in june 2012.

i am not happy with the iva because it is for 7 years instead of the standard 5.

also when they calculated my monthly payments, i am concerned because they took my disability living allowance into account as income.

i also live with a partner, but i am not on the deeds, and i dont have financial interest in the property.

i would like to ask if i can complain about the iva being missold to me, and not happy at how long it was set for.

were they also right to include my dla as income?

if i was to let the iva fail would i qualify for a debt relief order, and would my dla bee taken as income1?

i was on incapacity benefit when the iva was granted, and now i am on esa con based.

confused about what to do here so any help please thank you xx

Vikipollard

Can't answer the question about DLA, I'm afraid, but perhaps speak to someone at Step Change or National Debtline for a separate view point?

When they did your proposal, what reason did DFD give for the 7-year term? If you can't remember, it's likely to be in the detail of the IVA proposal that you will have a copy of.

You say that you live with someone but are not on the deeds therefore have no financial interest in the property ~ that may be why you have to pay for longer. (It was for me ~ similar situation, living with DH but not on mortgage, so couldn't be asked to release equity in the property. This meant I had to pay for 6 years, not 5. My debt was just under £20k.)

How much is the debt for in total? I believe there is a maximum for a DRO (I could be wrong), which may be why they suggested an IVA but this is just supposition on my part.

Not quite sure where you're going with the missold bit, but there will undoubtedly be others with lots more useful advice along.

Max_Maxwell

SPELLKASTER wrote: »

i am not happy with the iva because it is for 7 years instead of the standard 5.

IVA's are generally talked about in 'standard' 5 year terms but will be extended if creditors don't see there will be a sufficient return.

Why, 6 months ago, did you agree to the term if you were unhappy with it?

cheesedoffwithdebt

Vikipollard wrote: »

Can't answer the question about DLA, I'm afraid, but perhaps speak to someone at Step Change or National Debtline for a separate view point?

When they did your proposal, what reason did DFD give for the 7-year term? If you can't remember, it's likely to be in the detail of the IVA proposal that you will have a copy of.

You say that you live with someone but are not on the deeds therefore have no financial interest in the property ~ that may be why you have to pay for longer. (It was for me ~ similar situation, living with DH but not on mortgage, so couldn't be asked to release equity in the property. This meant I had to pay for 6 years, not 5. My debt was just under £20k.)

How much is the debt for in total? I believe there is a maximum for a DRO (I could be wrong), which may be why they suggested an IVA but this is just supposition on my part.

Not quite sure where you're going with the missold bit, but there will undoubtedly be others with lots more useful advice along.

I agree with Vicki's comments (well and the rest as well), you may need a second opinion, but it sounds to me like you went through with it and only then have thought through the consequences. If the IVA is not right for you, you might be able to create a case against the company who set it up but the most important issue is how you will deal with your debts. They will remain, and some arrangement will have to be made concerning them-I'd focus on that for now.
I do believe though that all your income, whether benefits, earnings or whatever, is taken into account, however someone who actually has the right qualifications in this arena could tell you for definite.
But yes- if you don't have a stake in a property the term of the IVA could well be longer because of that.
Take your time, get someone to explain ALL of your repayment options to you, and give you their opinion (professional). It is a very worrying time for you, and it's easy to feel that you've lost control- I hope you get this sorted.

SPELLKASTER

thanks for the replies.

my total debt is around £14k, yet my income is only around £5k a year in benefit!

i didnt realise at the time of taking out my iva about the terms; i didnt know that a standard iva was for 5 years until after i agreed.

i will be going into the citizens advice bureau to enquire about this sometime in the next week.

it looks like i might have to fail the iva in order to secure a dro and i know you have to pay a fee of £90 for this.

i think it is outrageous i am having to pay for longer and considering i am on benefit which i could loose at any time ::+((

UpToMyNeckInIt

SPELLKASTER wrote: »

thanks for the replies.

my total debt is around £14k, yet my income is only around £5k a year in benefit!

i didnt realise at the time of taking out my iva about the terms; i didnt know that a standard iva was for 5 years until after i agreed.

i will be going into the citizens advice bureau to enquire about this sometime in the next week.

it looks like i might have to fail the iva in order to secure a dro and i know you have to pay a fee of £90 for this.

i think it is outrageous i am having to pay for longer and considering i am on benefit which i could loose at any time ::+((

Hi SPELLKASTER,

Sorry to hear of your IVA woes. (I am an IVA customer myself).

I believe that currently, your only complaint mechanism is via the IVA company, and your IPs regulatory body.

Based on the info. provided, I would say that an IVA is not your best solution (far from it in fact). I agree that BR or a DRO is possibly the best way forward.

As for finding the £90 fee, if you are going to fail the IVA, I would suggest that the easiest way to do this is to stop your IVA standing order/direct debit. The money saved will fund the DRO/BR process hopefully.

I've got to agree with your earlier post regarding concerns of mis-selling in this instance. Just thank goodness you saw the light after just 6 Months, not 6 Years. I am shocked that an IVA was considered suitable in the first place. I wonder if you have been the victim of a greedy sales rep. Worth a chat with the CAB.

Good luck, and Happy New Year.

SPELLKASTER

UpToMyNeckInIt wrote: »

Hi SPELLKASTER,

Sorry to hear of your IVA woes. (I am an IVA customer myself).

I believe that currently, your only complaint mechanism is via the IVA company, and your IPs regulatory body.

Based on the info. provided, I would say that an IVA is not your best solution (far from it in fact). I agree that BR or a DRO is possibly the best way forward.

As for finding the £90 fee, if you are going to fail the IVA, I would suggest that the easiest way to do this is to stop your IVA standing order/direct debit. The money saved will fund the DRO/BR process hopefully.

I've got to agree with your earlier post regarding concerns of mis-selling in this instance. Just thank goodness you saw the light after just 6 Months, not 6 Years. I am shocked that an IVA was considered suitable in the first place. I wonder if you have been the victim of a greedy sales rep. Worth a chat with the CAB.

Good luck, and Happy New Year.

Happy new year to you also, and yes a trip to the CAB about my iva will be arranged shortly.

Depth_Charge

SPELLKASTER wrote: »

thanks for the replies.

my total debt is around £14k, yet my income is only around £5k a year in benefit!

i didnt realise at the time of taking out my iva about the terms; i didnt know that a standard iva was for 5 years until after i agreed.

i will be going into the citizens advice bureau to enquire about this sometime in the next week.

it looks like i might have to fail the iva in order to secure a dro and i know you have to pay a fee of £90 for this.

i think it is outrageous i am having to pay for longer and considering i am on benefit which i could loose at any time ::+((

Hi

Not knowing your full circumstances but this all sounds a little strange advising an IVA from what you have put so far.

Did your IVA company advise you on other options such as Bankruptcy & DRO at the outset?

Have you any PPI issues and again did your IVA company advise you on potential PPI claims at the outset?

Good luck with the CAB, they should be able to advise and assist, currently being in an IVA should not make any difference with regard to them helping you.

Anondebtadvisor

I agree Uptomyneckinit :-)

There is a big difference between cant pay and wont pay! Fortunatley we rarely come across the later

cheesedoffwithdebt

I agree too- sounds like an IVA was never ever right for you- it is quite disturbing that companies so quickly select them as an option- Spellkaster you've had some very good replies on here good luck