Existing IVA & "New debt"

Edna_2013

Hi

I am not 100% certain this is the right section fro this thread, but here goes. To keep it as brief, but to the point as possible, for many years I had a significant gambling problem that resulted in approx £20k of unsecured debt. I entered into an IVA just over two years ago, which hasnt gone as smoothly as I was hoped, but at the very least, is now in a position where after the annual renewal in the summer, a reduced rate has been agreed with my IP and the payments have not been missed so far.

My gambling issues led to a number of loans and a high proporion were Payday loans. My gambling reduced considerably late in 2010 and has been extremely manageable for some time. However, this changes over this summer and I have been fighting an uphill battle since.

I now have got myself into a situation with Payday loans again. Currently I have: -

QQ - £863 on payment plan, commenced August, 10 x payments of £83 with second due in two days.

PDUK - £745 - on payment plan, 3x payments complete. fourth payment of 50 due in two days time.

Wizzcash-taken 3mth loan in last few days to replace an existing loan with Fullpocket loans. 3 x monthly payments of 94 to clear.

I hate to say my partner is not aware of these, and if she was, I would expect her to walk out on me with my daughter (2yo) after a good 2 years of hell with my when my gambling was at its worst in 2008-2009.

We are shortly moving house and the payments for the PDL's are absolutely killing our workable funds, which to date, I have been trying to clear where possible.

My question, essentially, is does anyone have an experience of being in an IVA, but accruing new debt, i.e. Payday loans. If so, how did you tackle? Paying them off slowly is the only thing I can do at the moment but its proving very difficult to manage them all. I spoke to my IP and they advised they can only be handled separately as they are new debts, and a DMP style company like PayPlan advised they cant help me with these as I am in an IVA.

I am starting to get my wits end and I really dont want to it to affect life anymore than it is, but its becoming impossible to handle. Ironically, the QQ loan is despite them being in my IVA for a loan years ago!!

I would appreciate any guidance and if I have missed anything, please let me know.

Many Thanks for reading.

UpToMyNeckInIt

Hi Edna,

Be very careful how you proceed with this you are half way into your IVA and you want to get to the end you have come so far. Fortunately, you seem to have a sympathetic IP.

This extra debt could have serious repercussions as creditors do not like post IVA debts. If you cannot get this breach under control, it could lead to IVA failure and bankruptcy proceedings being instigated against you. At best, you will once again be at the mercy of your creditors - back to square one, probably with statutory interest and your IP fees thrown in to boot.

I would personally try and pay of this additional credit off: Are you able to borrow from family or friends?

Finally, please STOP GAMBLING: You know it’s a mug’s game. Get help for your gambling addiction (Running up £2,000 is not what many would consider ‘under control’). You are clearly aware of the repercussions that this has, not only financially, but on your family situation.

Sincerely hope you sort this out. Good luck.

cheesedoffwithdebt

There will be a few people who know more about the legalities of IVA's who will comment I am sure, but as far as I know the terms of an IVA are that you don't take on any more debt. In fact some IP's might fail an IVA because of it so you do need to take this seriously.
However as you've spoken to your IP_ the only course of action I can suggest is that you write to the PDL companies, explain you are in an IVA and have very little spare cash, and make them an offer to repay at a particular rate.

If any individual debt exceeds £750 the creditor does have the right to file for bankruptcy- as Uptomyneckinit has said, if you have anyone in the family who could help you out that would be probably much better.

I would strongly suggest you find a support group regarding the gambling as well, no-one is judging here, you do need support because this is sabotaging your efforts to get out of debt.

Support groups are packed with people struggling with addictions so as I said, this isn't about what you've done- this is about looking after yourself -as UTMNII has said, I really hope you get this sorted.

Anondebtadvisor

I agree with the OP here - if you inform your IVA company of post IVA debts you will probably find that this is a breach of your IVA and they could go on to issue a notice of breach which should be rectified within 28days if not the IVA could fail.

You could consider allowing the IVA to fail and then petition for bankruptcy but you should except a bankruptcy restriction order "BRO" due to the gambling, depending on the ORs attitude this could be classed a reckless