We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
IVA Doubts And New Job Predicament

stonechalice
Posts: 10 Forumite
Hi all,
I have been in my IVA for around nine months now and I'm really not sure I've done the right thing. I believe Payplan may have talked me into it and I'm not sure I was suitable for it. My debts were around £16000 (credit card) and I'm paying £50 per month for five years.
I have looked on forums and many people say that I shouldn't be in an IVA with such a small debt?
Anyway, my real problem starts here. I have been offered a job with a much bigger salary than the one I'm currently on. I'm jumping from £17000 per annum to £30100!!
As you can imagine I'm really excited by this opportunity, but I'm now very concerned that when I inform Payplan of my change in circumstances they will want to take everything I make on top, thus making no difference to my life at all apart from commuting and longer hours.
I'm currently in a dead end job going nowhere and the IVA appears to be holding me back from bettering myself. What's the point of finding a better paid job if they're going to take all of it?
My question is: If I were to breach the terms of the IVA, what are the implications? If I'm in a better paid job and can afford to pay more, would I be better off doing some other form of debt repayment, or even bankruptcy?
The way in which I was granted the IVA was also a little vague. I'm sure I informed them of one credit card debt I had, but on review of my creditors list, the card is not on there. I received a new card in the post and when I tried using it, it worked! I know I shouldn't have but I was sure it was a mistake.
Does this now mean I've breached my terms as I still have a credit card even though I'm in an IVA? I'm so confused right now as my partner and I are really struggling and this new job would be perfect to get stable and settled again.
Any advice is very appreciated!
I have been in my IVA for around nine months now and I'm really not sure I've done the right thing. I believe Payplan may have talked me into it and I'm not sure I was suitable for it. My debts were around £16000 (credit card) and I'm paying £50 per month for five years.
I have looked on forums and many people say that I shouldn't be in an IVA with such a small debt?
Anyway, my real problem starts here. I have been offered a job with a much bigger salary than the one I'm currently on. I'm jumping from £17000 per annum to £30100!!
As you can imagine I'm really excited by this opportunity, but I'm now very concerned that when I inform Payplan of my change in circumstances they will want to take everything I make on top, thus making no difference to my life at all apart from commuting and longer hours.
I'm currently in a dead end job going nowhere and the IVA appears to be holding me back from bettering myself. What's the point of finding a better paid job if they're going to take all of it?
My question is: If I were to breach the terms of the IVA, what are the implications? If I'm in a better paid job and can afford to pay more, would I be better off doing some other form of debt repayment, or even bankruptcy?
The way in which I was granted the IVA was also a little vague. I'm sure I informed them of one credit card debt I had, but on review of my creditors list, the card is not on there. I received a new card in the post and when I tried using it, it worked! I know I shouldn't have but I was sure it was a mistake.
Does this now mean I've breached my terms as I still have a credit card even though I'm in an IVA? I'm so confused right now as my partner and I are really struggling and this new job would be perfect to get stable and settled again.
Any advice is very appreciated!
0
Comments
-
Hi.
I am also surprised that an IVA was suggested and went through on those figures. £50 a month would I think barely end up covering the IVA fees, the % return your creditors will be getting will be very low.
Assuming you are not a homeowner then I would have thought a DRO might have been a more suitable option at the time, but obviously you have moved on from that.
If you do take the new job, and based on what your new income will be how much do you expect to be able to afford a month towards your debts? (will you lose any benefits for taking the new job? will you have higher travelling costs etc).
Do you have a debt built up on the omitted card? or did you just use and repay?A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
I have debt built up on the card yes. I must admit I thought it was strange to be getting statements still!
I feel I've got myself into a right pickle as at the time I was at my wits end and the IVA sounded to good to be true!
My pay increase will be substantial enough that I will have a good deal of cash left over with the new job. I mean, I will be going from around £1100 a month to £1900!!
There will be costs for travel as I live around the corner in this job, plus my rent will be going up soon but I still will have quite a bit left!
My review is not far away and I'm not sure what they will ask for!0 -
If the IVA fails you could still be liable for the IP's fees which won't be fully paid after only 9 months at £50/month
I suppose you need to potentially weigh up which would mean you would be debt free quicker. It may be useful to speaking to one of the debt advice charities about your situation rather than payplan in the first instance.
But if you do take the new job and intend to carry on with the IVA then you should inform them of the change, not wait for the annual review.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Many thanks. I will contact Payplan.0
-
Pay plan seem to have a habit of pushing IVA`s to clients that they are wholly unsuitable for.
Its a tough decision, but I would be tempted to carry on with the IVA, as it does give you protection from your creditors.
If you do take the job, I would maybe get my first few pay-packet's under my belt and try and repay that credit card, or at least get the balance down below £500, you will then still be within the terms of your agreement (technically), then inform your IP.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Payplan tried to convince me to do an IVA for my £24k debt - I told them that I couldnt because of my job.
Instead I cleared it all with a 90mth DMP with them instead.0 -
stonechalice wrote: »
Any advice is very appreciated!
You have to factor in probation time what what I was told, the first 2 years you have no real protection, one month you can be earning loads, the next month you may not have a job
The rights changed in 2012, sorry to be the party popper I would not do anything immediate or hasty x0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.2K Reduce Debt & Boost Income
- 452.5K Spending & Discounts
- 241K Work, Benefits & Business
- 617.4K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards