Is it wrong to want to be debt free

MissyJB · 4 February 2015 at 7:16PM

Hi everyone,

I entered into a IVA in September 2012 and within 6 months was in a position to double my payments. 15 months later after changing employment I am now in a position to repay my creditors and have been seeking to do so with my debt managers The Payplan Parnership. However I received this email today from Payplan and am very concerned as I don't want to be declared bankrupt.

"There is some important information I need to make you aware of.

There is always a risk when proposing a variation to the original proposals with one of those risks being Bankruptcy if your offer is rejected. We cannot guarantee how the creditors will vote and what the ultimate outcome will be.

The above paragraph is not something we wish to cause you any distress; however we have to offer a comparison to bankruptcy in the variation proposals. In this case, if creditors were to make you bankrupt they would receive a 100% of the debt back, due to the assets you obtain, compared to 57% of the debt from the IVA.

We are not saying creditors will reject your offer. You have not agreed to anything yet, therefore if you want to withdraw your offer and carry on maintaining your monthly planned payments, please let me know."

Is this true, can this really happen?

On_my_way · 4 February 2015 at 11:37PM

I am not familiar with IVA's however, I am fairly sure that you could never be made bankrupt if you intend to pay your creditors and have the money to do so.

Keep calm and ring up your provider. THEN look at offering private full and final offers to your creditors in writing. There is a lot of advice on this forum.