IVA help?

savvysir

I am in a bad situation, 3 years into an IVA that started at approx. £14000, was managing OK for the first 2 and a half years. Birth of my daughter ) meant that I was forced into taking payday loans from less than picky lenders. I now have an additional £4500 debt on these and am struggling.

Contacted another loan company today that advised that I should contact my current IP, cancel my IVA and then take out an IVA with them, started this process and put the wheels in motion with my current IP...

I then called back the new IP and was told that the advice I was given was illegal and that I should get back in touch with my current IP, explain the situation and get the debts added into my current IVA, they wont do this though as they will only add pre existing.

I'm now stuck as my IVA is failing, but it'll take 3 months to go through and until then I can't do a thing... Anyone know if there is anything I can do to find a small paddle?

Tixy

What did you current IP say when you spoke to them? Did you inform them of the additional debts you had taken out and have they said that they will have to end the IVA?

savvysir

The current IP said that they wouldn't add any debts that weren't pre-existing. They have also said that the IVA will fail.

sourcrates

savvysir wrote: »

The current IP said that they wouldn't add any debts that weren't pre-existing. They have also said that the IVA will fail.

Hi,
The advise you have been given is correct, please have a read of this link, :


http://www.debtadvisorycentre.co.uk/iva/can-i-add-debts-onto-an-existing-iva-0-3988-0.html

National_Debtline

Hello there,

Would you mind letting us know about your wider circumstances? There could be alternative options to consider. Are you in mortgaged accommodation?

Very best wishes,

David @ National Debtline
Twitter: @natdebtline

sourcrates

Have a look at this, you do have options should your IVA fail, you can for instance, propose a new IVA which includes all your debts, this may be an option for you, I would maybe go with another provider, I was with Debt Free Direct, and I found them to be ok, the only other options are Bankruptcy or a DMP :


http://www.iva.org/what-happens-if-my-iva-fails

Tixy

So have they advised you to stop your IVA payments straight away?

I would suggest seeking some advice about your next options, e.g. whether a DMP would be a suitable option for the remainder of your IVA debt and the payday loans? would another IVA be viable, or even if bankruptcy could be a better solution (obviously depending on your circumstances).
I'd probably talk to one of the debt charities (independant from your existing IP).

savvysir

Thanks, not sure what to do now though, my main worry is the Payday loan companies contacting my work in the next 3 months, it won't be till then that I will be able to look at starting a new IVA or setting up something similar.

Also, will cancelling my debit card stop recurring payments? Or will I have to do something additional?

sourcrates

savvysir wrote: »

Thanks, not sure what to do now though, my main worry is the Payday loan companies contacting my work in the next 3 months, it won't be till then that I will be able to look at starting a new IVA or setting up something similar.

Also, will cancelling my debit card stop recurring payments? Or will I have to do something additional?

Report your card stolen with your bank, at same time ask them to cancel all CPA`s on that card, your new card will arrive, and your creditors will not know the new details, you can write to them requesting all contact is made via letter or email only !!


Be wary though as some payday lenders will set up a direct debt instead to fleece your account (without permission) which they cant legally do, but it has been known, you need to check your account regularly.

savvysir

Tixy wrote: »

So have they advised you to stop your IVA payments straight away?

I would suggest seeking some advice about your next options, e.g. whether a DMP would be a suitable option for the remainder of your IVA debt and the payday loans? would another IVA be viable, or even if bankruptcy could be a better solution (obviously depending on your circumstances).
I'd probably talk to one of the debt charities (independant from your existing IP).

Thanks Tixy, they advised to cancel the direct debit and cease payments immediately.

Hopefully another IVA will be possible, the total level of debt should make it an option but not sure if my creditors will agree to it. I'd go the bankruptcy route if it wasn't a breach of my employment contract

savvysir

sourcrates wrote: »

Report your card stolen with your bank, at same time ask them to cancel all CPA`s on that card, your new card will arrive, and your creditors will not know the new details, you can write to them requesting all contact is made via letter or email only !!


Be wary though as some payday lenders will set up a direct debt instead to fleece your account (without permission) which they cant legally do, but it has been known, you need to check your account regularly.

OK, that's a great help, one other thing, is there any way to prevent DCAs being brought in? It'll be 3 months before I can begin to set up an alternative and just thinking the worst...