Struggling with IVA

Banquo21

I am currently in an IVA. I started my IVA in June of this year and I had £27000 worth of debts. I took the majority of my loans out in the middle of a gambling addiction. Three from the same provider in the space of many weeks. It was only after my fourth was refused that I realised I had amassed such a massive debt.



I took up with an IVA company (Payplan) and my first attempt was refused. I then was advised to include my wife's income into the IVA (not the house, it is in her name only) I currently earn £1082 per month take home pay and I have to pay £328.19. Now we are really struggling to pay off everything at the moment. We both contribute toward the household costs and our money is slowly dwindling away. I pay £200 a month to my wife and another £200 for travelling expenses to travel to work. All our income was taken into account and I was reluctant for my Wife to be involved as it was entirely my fault I had built up such a debt. But my IVA company said I would have a better chance of being accepted. Now I am not so sure I did the right thing.



Can I go back to my debtors and organise something with them? Maybe a DRO which might have suited me better.



Any advice would be appreciated.

SPELLKASTER

Banquo21 wrote: »

I am currently in an IVA. I started my IVA in June of this year and I had £27000 worth of debts. I took the majority of my loans out in the middle of a gambling addiction. Three from the same provider in the space of many weeks. It was only after my fourth was refused that I realised I had amassed such a massive debt.



I took up with an IVA company (Payplan) and my first attempt was refused. I then was advised to include my wife's income into the IVA (not the house, it is in her name only) I currently earn £1082 per month take home pay and I have to pay £328.19. Now we are really struggling to pay off everything at the moment. We both contribute toward the household costs and our money is slowly dwindling away. I pay £200 a month to my wife and another £200 for travelling expenses to travel to work. All our income was taken into account and I was reluctant for my Wife to be involved as it was entirely my fault I had built up such a debt. But my IVA company said I would have a better chance of being accepted. Now I am not so sure I did the right thing.



Can I go back to my debtors and organise something with them? Maybe a DRO which might have suited me better.



Any advice would be appreciated.

Unfortunately you cannot get a DRO as your debts are over the £15K limit.

I had problems with Debt Free Direct making my IVA deliberately unaffordable by increasing the payments from £130 to £175.

They had taken my Disability Living Allowance as income when it should not have been.

I had no option but to report my IVA provider to the Insolvency Practitioners Association.

I would suggest you do the same.

There website address is https://www.insolvency-practitioners.org.uk

They have an email address to send complaints to and can take up to 15 days to reply.

Good luck xx

alastairq

You would not qualify for a DRO....[too much debt, amongst other things.]

HAve a gander at the site below.....it will give you the options in plain language.

http://debtcamel.co.uk/start/

longtermplanner

I think you need some advice on bankruptcy - as the others have said you owe too much for a DRO which has to be less than 15k.

The problem with bankruptcy may be your wife's house. Has this ever been in your name or joint names? Do you contribute to the mortgage?

Banquo21

The house isn't in my name at all. I moved in after she bought it. I do pay her £200 a month for bills etc. The mortgage comes out of her account.

longtermplanner

Based on that, your wife's house should be safe if you end your IVA and go bankrupt.

I think you should talk to someone (I suggest National Debtline if you want to talk on the phone or Citizens Advice if you prefer face to face) about bankruptcy and how much you would pay every month in an Income Payment Agreement - in bankruptcy this would last 3 years, not 5 in an IVA and your wife's income would not be relevant.

You would be likely to get a Bankruptcy Restriction Order because of the size of your gambling debts, but this probably wouldn't impact you very much in practice.