PayPlan IVA & Debts

Will9999

Hi all
I started my IVA around Feb 2019. My total debts amounted to about £15,000. I done the I & E etc, and the total amount I had to pay was £50pm. I regularly work overtime so my payments were never that low, always around £190, highest been around £300 I believe. I've paid roughly £1,500 to date.

I feel now that I want the IVA to end. I was too quick to jump at it and feel that I didn't spend enough time thinking of the pros and cons properly. I have been researching ways of ending the IVA and different solutions. I decided to check my credit report for the first time since it started. Over £10,000 worth of my debts have vanished from there. My total debt according to my file is now at a little over £3,000. I just wondered if this is accurate or if it's something that happens when you enter an IVA? Also I've noted that a lot of my debts on there that are left have increased month by month, the largest increase been by about £100. I was under the impression all interest and charges are frozen? So surely the balance shouldn't increase? I'm baffled. I'm starting to think I'm been robbed blind by PayPlan.

Recently my partner was off work for a few months with suspected cancer and very, very high blood pressure. They were concerned for heart attacks and strokes and so admitted them. I received a message from PayPlan saying I owe them over £1,000 in additional income payments because my payslip shows about £1,300. My partner was getting SSP. They were aware of the situation, in fact it was them who advised me to defer a few payments. My partner has point blank told me they are not sending any of their bank statements or payslips to them. PP basically said without those they would have to base everything off my wage slip alone.

Would ending the IVA be in my best interest, do you think? I'm just getting fed up. I'm paying more out now than I was before the IVA. The only reason I done it in the first place was because I was put down to contract hours, and only working part time my wage was only about £650. Sods law now my average wage is almost twice that.

Thanks for any help.

sourcrates

Hi,

Firstly, for 15k of debt, you should not be in an IVA, it appears you may have been advised badly on that one.
Second, ignore what your credit file sayes, it won`t take account of the arrangement your in, its only when the IVA is concluded successfully that all interest, charges, and the debt itself, gets written off, until then it may continue to accrue.

If your income rises, then so do your payments, this is part and parcel of an IVA, and should have been explained to you at the start.

I`m sorry to hear about your partner, the extra stress of this combined with the IVA, must be hard to take, I think in your situation I would be tempted to let the arrangement fail, I would not normally advise that, but as youve only been in it a year, with your income rising, and the situation at home, combined with the fact your debt is not that high, i would be tempted to let the IVA fail.

This won`t be the end of the world, Payplan may tell you your creditors can sue for bankrupcy, which in theory they can, but in practice its extreamly unlikley, you don`t mention if your a homeowner or not, but if you have no assets, what would be the point ?

The debts normally just get chased by a debt collector again, in your position, a debt mangement plan, or possibly a debt relief order may be better options to pursue.