IVA help wanted asap please!

paperstars

mwarby said:

You think creditors will be ok getting £80 a month while you pay your parents £200 a month ? I know it’s not what you want to hear, but I don’t see seem agreeing to this (the IVA needs creditors to approve), what will probably happen is you’ll be asked on day of creditors meeting to agree to a variation to increase your contributions by a large amount

do pay plan know about the money to parents, to pay off a debt owed to them ?

also what’s the 180 amount for that I couldn’t work out ?

It's for previous debt that my parents kindly took over as my interest at the time was sky high. The advisor told me he was going to add the £180 into my rent allowance, therefore they wouldn't "see" this amount anywhere.
Yes, PayPlan are aware.
This is the text I just received.. I texted him saying I wasn't sure what to do:

Over the 5 years you will only pay £4800

Your payments will be £80 per month, giving you more in your pocket each month

To clear your debt in full over the same period with a you will have to pay £165 per month plus any additional interest and charges

With the IVA you will pay less back and benefit from it each month, unlike your already over priced DMP where if you paid £80 per month it would take you over 124 months

John

foxy-stoat

Sell your £4,000 car and buy a 1.3 corsa diesel for £2,000 - you should be able to pay your parents £2000 back, save on road tax, insurance and fuel costs.  

Take the money your saving each month and pay that towards your debt.

There are no easy and quick ways to clear £10,000 of debt I am afraid, but at the moment you are not paying interest on the debt as your in a DMP - so now would be the time to over pay if you can.

£350 a month rent is a lot + £50 a month housekeeping when your in a DMP and thinking about IVA/BR - do they know how bad your finances are?

Find out how much you need to buy you out of your mobile contract, and what your phone is worth.  You can buy an Iphone 6 for less than £100 and pay and go sim card for less than £10 a month, also you dont need insurance for the phone.
£25 for hobbies - you can stop them for a while.
I spend £12 on hair cuts every 6 weeks.  Your £30 a month is a little high.
£20 on health - doubt I spend that on my health a year.
You could probably half your clothing budget if you tried.
£180 - whats that for, secret ?

mwarby

The rent will be over £500 once the debt payment to parents is massaged into rent figure. This seems very wrong to me, and will likely end up in tears (I had to sign off that budget was honest for mine, this one isn’t, and there last 5 years of providing bank statements etc for this to be unravelled), if we’re going down this route why not go bankrupt and claim the rent is £1k a month, you’d pay just bankruptcy fees then (and probably get free porridge too)

paperstars

foxy-stoat said:

Sell your £4,000 car and buy a 1.3 corsa diesel for £2,000 - you should be able to pay your parents £2000 back, save on road tax, insurance and fuel costs.  

Take the money your saving each month and pay that towards your debt.

There are no easy and quick ways to clear £10,000 of debt I am afraid, but at the moment you are not paying interest on the debt as your in a DMP - so now would be the time to over pay if you can.

£350 a month rent is a lot + £50 a month housekeeping when your in a DMP and thinking about IVA/BR - do they know how bad your finances are?

Find out how much you need to buy you out of your mobile contract, and what your phone is worth.  You can buy an Iphone 6 for less than £100 and pay and go sim card for less than £10 a month, also you dont need insurance for the phone.
£25 for hobbies - you can stop them for a while.
I spend £12 on hair cuts every 6 weeks.  Your £30 a month is a little high.
£20 on health - doubt I spend that on my health a year.
You could probably half your clothing budget if you tried.
£180 - whats that for, secret ?

I am not saving any money, I have no savings, therefore no additional payment can go towards my debt.
I have heard bad things about diesels, my car is in good condition and I need it on a daily basis for getting to and from work, I do a lot of miles on it.
Again, I previously mentioned the IVA advisor told me to put £400 in rent to allow an £80 payment towards the IVA, per month.
I did need insurance for my phone last year when it got smashed up at work. This would have cost me £300 in a new screen but luckily I had the insurance.
£180, again, I have previously mentioned this. This is for previous credit cards that my parents took on for me.
I am on anti depressants and they can cost me, especially now as I have to change over my dose. I am looking to get an NHS card.

paperstars

Again, I cannot really reduce my car insurance because I had a car accident last year.

mwarby

These figures aren’t adding up for have £380 of ‘other’ of which at least 180 is payment to parents for a debt you have with them, there is a surplus of £50, you have said rent is now £400 which means surplus is null, so we’re left with £380 to explain

foxy-stoat

Sell your car for £4000 and buy one for £2000 - use £2000 left to pay your parents back.  You will save the £200 a month that you are giving to your parents towards the debt.
Not every diesel car that you have heard of is bad.   Mine is fine and I drive 45 miles a day 5 days a week and I spend £25 a week on diesel and its £20 a year road tax.  Insurance should be cheaper that whatever you have unless its already a low group car.
You can buy secondhand mobile phone for £50, which you can also use for work - unless you must have the latest Iphone 12. 
Run some quotes for other cars, see if you can save any money there. 
Sorry that you are on anti depressants, I guess these are a must.

paperstars

Going forward, I will contact PayPlan and go from there. This overall balance was created some time ago, and things have changed since then. Can anyone help me though with the text message I have been sent? Whether what this John is saying is correct? I am so confused and obviously I am not helping myself nor anyone else at the moment

mwarby

Who are the national dent agency anyway, who are selling this IVA ? I’d wager they are an introducer for another firm

mwarby

This is bit of insolvency manual which worries me, and it looks like the OP is being encouraged by the IVA company concerned to make false representations

57.23EA False representations 

The debtor commits an offence if, for the purpose of obtaining the approval of his/her creditors to a proposal for an IVA he/she make any false representations, or fraudulently does or omits to do anything [Note 97]. 

 

57.24EA Prosecution of delinquent debtors 

If it appears to the nominee or the supervisor that the debtor has been guilty of any offence in connection with the IVA for which he/she is criminally liable the matter should be reported immediately to the Authorisations Team [Note 98].