Payplan

aliscrapper

Hiya

I've recently found out that hubby has run up debts of £26,000 comprising a loan from Natwest and three credit cards.

From looking at all available options and looking extensively on-line we feel that an IVA may be our way forward.

Read so many horror stories about IVA's going wrong; but notice that Payplan are both on :money: sticky at the top and on the CAB debt leaflet so thinking of consulting with them.

What really worries us is any hidden costs or the thought of losing our property which is a separate secured loan.

Any advice or guidance gratefully received. Thanks

Depth_Charge

aliscrapper wrote: »

Hiya

I've recently found out that hubby has run up debts of £26,000 comprising a loan from Natwest and three credit cards.

From looking at all available options and looking extensively on-line we feel that an IVA may be our way forward.

Read so many horror stories about IVA's going wrong; but notice that Payplan are both on :money: sticky at the top and on the CAB debt leaflet so thinking of consulting with them.

What really worries us is any hidden costs or the thought of losing our property which is a separate secured loan.

Any advice or guidance gratefully received. Thanks

Hi

Payplan don't charge up front fees for an IVA but they charge other fees for IVAs just like any other company. They (Payplan) administer free debt management plans but they are not a charity, they are a profit making business.

Not all CAB branches refer people to Payplan for IVAs

Make sure you fully understand the pros, cons & potential implications of an IVA especially if there is a property involved.

5 / 6 years is a long time and a lot can happen, thousands of IVAs fail often leaving people in a worse position than when they started.

IVAs can however be the right solution depending on circumstances.

Best to get full independent advice and perhaps a second or even third opinion based on your full circumstances.

Much more information would be needed to sensibly guide you further.

Have you any debts or are they all your hubbys?

Is there equity in the property?

Have you other assets?

Are there any potential PPI claims?

How secure is your employment?

Any chance of putting up your SOA as this may assist people helping you further.

Genuine best wishes

aliscrapper

Depth_Charge wrote: »

Hi

Payplan don't charge up front fees for an IVA and they administer free debt
management plans but they are not a charity, they are a profit making business.

Sorry if this sounds a daft question; but never been in this situation before. How do Payplan charge their fees - are they built into the IVA and how do you find out what fees to expect??

Not all CAB branches refer people to Payplan

Make sure you fully understand the pros, cons & potential implications of an IVA especially if there is a property involved.

5 / 6 years is a long time and a lot can happen, thousands of IVAs fail often leaving people in a worse position than when they started.

IVAs can however be the right solution depending on circumstances.

Best to get full independent advice and perhaps a second or even third opinion based on your full circumstances.

Much more information would be needed to sensibly guide you further.

Have you any debts or are they all your hubbys?

All hubbys

Is there equity in the property?

£24,000 at recent valuation

Have you other assets?

None

Are there any potential PPI claims?

Yes and unfortunaely hubby gobbled that up too

How secure is your employment?

Hubby's employment is as secure as any job can be in this financial climate. I suffer depression and are on benefits.


Any chance of putting up your SOA as this may assist people helping you further.

Will get this done ASAP

Genuine best wishes

So sorry for not managing to sort the font colour. Hope it makes some sense??

thanks for your help!

Depth_Charge

aliscrapper wrote: »

So sorry for not managing to sort the font colour. Hope it makes some sense??

thanks for your help!

Hi

Thanks for the reply

Yes, it makes sense:)

Will await the SOA

I am going off line in about 5 so will catch you tomorrow all being well.

Take care & best wishes

aliscrapper

Depth_Charge wrote: »

Hi

Thanks for the reply

Yes, it makes sense:)

Will await the SOA

I am going off line in about 5 so will catch you tomorrow all being well.

Take care & best wishes

Thank you so much!

FiatFan_2

Depth_Charge wrote: »

Payplan don't charge up front fees for an IVA but they charge other fees for IVAs just like any other company. They (Payplan) administer free debt management plans but they are not a charity, they are a profit making business.

aliscrapper wrote: »

Sorry if this sounds a daft question; but never been in this situation before. How do Payplan charge their fees - are they built into the IVA and how do you find out what fees to expect??

Assuming PayPlan work in the same way as StepChange. Advice is given free upfront, but the actual iva is administered by a fee charging IP where the fees will be paid from the monthly iva payments.

The fees are outlined in the iva documents, just reading my agreement again, mine states the IP will receive £2110 for administering the iva. It also suggests that the supervisor will also receive 15% of further amounts realised, which i presume will be overpayments from income, overtime, bonus, PPI etc.

UpToMyNeckInIt

Always difficult to advise not knowing your exact circumstances, and you have had good advice here already.

I assume that you have exhausted more conventional solutions eg: a debt consolidation loan. This would be the least damaging to your credit file.

You are right to thoroughly research the subject of IVAs. Please consider the ramifications before entering one - speak to a few providers to see if it is the right option for you. Remember, just like bankruptcy, it is a form of insolvency, which in turn puts all sorts of restrictions on everything from the ability to open a bank account, or even get a mobile phone on contract.

I only went down the IVA route as I had no real option after an unexpected change in financial circumstances. That said, I am 13 Months in, and can sleep at night not worrying about debt.

Initially seek advice from the ‘charity’ organisations, but don’t be afraid to approach a private firm if they don't think you are eligible for an IVA.

Google ‘insolvency practitioner reviews’ and contact a couple of well-reviewed Insolvency Practitioners. Contrary to what some might have you believe, many don't charge you anything upfront, and their fees would be paid out of your monthly IVA payment (and agreed by your creditors). In fact, even charity organisations such as 'Stepchange' farm out many of their IVA customers to Grant Thornton and PayPlan.

The following link to Stepchange, gives a brief ‘iva pros & cons’ guide though which is a useful starting point:

http://www.stepchange.org/Debtinform...osandcons.aspx

Google ‘Straightforward Consumer IVA protocol’ which the vast majority of new IVAs are compliant with. This should direct you to a link to download the pdf document. Well worth a read.

Similarly, you will have to work out your income and expenditure. Whatever is left over is your IVA payment. Regarding what is deemed 'reasonable' expenditure, all IVA companies that I have come across, use the Stepchange budget Guidelines, which can be viewed/downloaded here:

https://docs.google.com/file/d/0B7LabJy69BP1M0gxeHQ1SDFiN1E/edit?pli=1

It is well worth a read, as it covers every form of expenditure, right the way down to allowances for hairdressing, kid's school dinners, meals at work, even hobbies etc if so required.

If you are careful to correctly record your income and expenditure, your IVA payment should be set at quite an affordable level. I have come across people who underestimate their expenditure (in the mistaken belief that their IVA will more likely be accepted), and subsequently have difficulty from day one. Don't fall into that trap.

Equity release (if applicable): Bear in mind that, however unlikely it is currently likely to happen, most IVA's require homeowners to (subject to a property valuation in Month 54 of the IVA), attempt to release equity via remortgage / secured loan up to 85% LTV to increase creditor dividend up to 100p in the £. (Subject to the resulting payment being max. 50% of you current IVA payment for affordability reasons). For most, equity release is not possible, so your IVA goes on for a 6th Year instead (which usually works out a lot cheaper). But who knows what the economic climate will be like in 4-5 Years time?

Bank Accounts: If any of your debts are with your existing bank, you need to open a full current account with a non-creditor institution now! (less overdraft of course). Best not to reveal that you are considering an IVA though (no requirement to volunteer such information).

Important to do this before you are on the insolvency register, as you will then probably be limited to a handful of basic accounts.

DO NOT switch to HSBC/First Direct: when they find you on the insolvency register, (which they will), they will make you close your account.

Enough for starters!!!

You have options though. Good luck with whatever you decide to do.

shinner

Have you looked into a self managed debt management plan who are the cards with ? Can you afford token payments look on my money steps in December i looked into getting an IVA glad i never now i between us started with £28000 just under. Credit card companies do like to try help. My interest and charges all frozen and i just have to speak with them every 3 months.

aliscrapper

shinner wrote: »

Have you looked into a self managed debt management plan who are the cards with ? Can you afford token payments look on my money steps in December i looked into getting an IVA glad i never now i between us started with £28000 just under. Credit card companies do like to try help. My interest and charges all frozen and i just have to speak with them every 3 months.

Please excuse my ignorance but wouldn't that mean paying the full £26,000 or do the creditors reduce what you owe them like with an IVA???

aliscrapper

Thank you all so much for your help - is so reassuring to speak to people who have been in a similar situation and can give me what all the IVA companies can't give me - first hand experience.

I've spent the morning printing and googling the amazing amount of knowledge you have kindly shared with me. Unfortunately as i suffer depression and obviously whats gone on has had a knock on effect to my illness; my ability to absorb information and concentrate is near on impossible; but I know when hubby gets in from work I have a pile of stuff I've printed off and he will be better at being able to absorb the information.

Something I did read on Stepchanges website with the pros and cons is that as "an IVA is a legal process - it may affect the terms of your employment or any hire purchase arrangements you have". Obviously not bothered about the hire purchase agreement; but alarmed that it could impact on hubby's employment??

Am I right in understanding that our SOA would only include hubby's side of things as debt is in his name and from what hubby was saying it just has to show hubby is only paying 50% of the bills???

shinner

I would tell him to do a soa that shows him paying all bills with a small contribution from you towards as additional income.
I have been on reduced payment since march with virgin and they have just settled for 22% with a default on my account and in process of trying to sort out others. I would make token payments my money steps is a good site.
With what you can save through making token payments you can save toward f&f