Help - MY CREDITORS ARE CANCELLING MY IVA

channywanny

hi i need help as payplan are not bein very helpful.
i was made redundant in june 2012 when i was 12 weeks pregnant, when i spoke to payplan they agreed to freeze my iva for 1 year and that they didnt require my redunancy payout (i had this in writing)/ so spent my money on moving into my own home as i still live with parents, so i now rent. however the creditors used this against me and claimed i needed to pay them reduncny which by then i had spent, if i had of known i would of handed it over as that would of been the end of my iva. i went to the ombudsmand and playplan agreed to go over the case again. however as im a new mum and going back to work part time they are saying my surpluse income is only £110 and they say the creditors wont agree to a payment this low??
what do i do? if i cant carry on with the iva are the creditors going to be chasing me? what happens if i go bankrupt? playplan sent em a leaflet on bankrupcy but im worried my car will be taken off me and my bank account and furniture etc. im really stressed and upset, im already haing to go back to work earlier then i wanted. iv always worked and never claimed benefits.

Anondebtadvisor

Have Payplan discussed bankruptcy with you?

I am suprised they are not being more helpful

channywanny

no they just sent me a booklet about it but i dont really understand it. it should of been sorted sooner but they tried to say i had missed payments but i just cancelled my direct debit on the advice of my case officer

fermi

How much is you car worth? Could you claim that it is essential for work or domestic needs and that you could not use alternative transport.

Furniture would almost certainly be safe unless you have a house full of antiques.

You may have to change banks, but that is not usually a huge deal.

channywanny

its worth £3000 but it was bought for me. i dont really understand banktrupcy

fermi

Bough for you in what way? Have they retained ownership? or was it a gift to you? Just being the registered keeper does not necessarily make you the owner.

If it can be said to be yours, then even if the OR agreed you needed a car, they might make you replaces it with something worth no more than £1K. Or ask that someone buys out anything above that value.

Please have a look at the info in the main board sticky.

Look here first - Bankruptcy Help: Important topics, factsheets and links

channywanny

it was bought by my partner but the car is registerd in my name as i drive it mainly plus the insurance is in my name

cheesedoffwithdebt

So sorry to hear this, hopefully someone with a better working knowledge of bankruptcy will come along, but you have been short changed on advice certainly and you should have had it at the time you were made redundant, because your prospects of completing the IVA at that point were insecure.

You need to get some advice from somewhere- but if this is all your surplus income now then bankruptcy might indeed be a better option, but having said that it's as far as I know, in practice like an IVA ( but you don't pay into the agreement for five years, it's a shorter period) Your creditors cannot take the items you need for daily living, and you don't own a property so it cannot affect your home although there might be issues like needing to let your landlord know-but that's why I am saying you do need advice from someone who understands bankruptcy.

I'd be inclined to sack Payplan, you can still go to Stepchange, or any of the other debt charities, Christians Against Poverty have a more hands on and helpful approach with their customers you might find them what you need from the point of view of support.

If you still have the letter from Payplan saying your redundancy payment was not required for handover I'd send that to your creditors and make them aware that you took advice.

I suggest you post on the Bankruptcy board on this site as well, there will be more on there who know all the practicalities and who can give more insightful comments-good luck.

Anondebtadvisor

I am sorry you are in the position channywanny, Payplan dont seem to be very helpful, surley they will discuss bankruptcy so that you understand the process?

It is not for Payplan to make the decison on what the creditors will accept, it is a decision for the creditors, Payplan should call a variation meeting and allow the creditors to make the decison based on the current circumstances.

I suggest that you write to them and request they call a variation meeting if it is not too late