Creditfix IVA I no longer can afford, kind advice please

nettied

Hi There....any advice on this situation I would really like to hear it please.

Background.. 3 years ago I left ex husband because he was racking up debt in my name (along with other things!) I left the marriage with just over 13k in debt, I paid it for a year and struggled paying it. I then went and spoke to a debt advisor and they recommended I speak to Creditfix for an IVA. To start with I was hounded by calls telling me that i needed to act quick and basically scare mongered into taking it out...(looking back now I can see what that was all about!.. commission ?) So I took on this IVA and I have been paying it for 2 years. To start with the payments were £175 which was about half of the payments I was paying to 7 creditors. I am a disabled student so once I started receiving Student loan it was classed as income and my ESA payment stopped. I asked Creditfix for lower payment and was granted that it be reduced to £75 but an extra 2 years would be added to the term. I was receiving PIP and child tax credit and child benefit for my son. Fast forwards 2 years and my son is now leaving college and my income will be reduced by £350. I can no longer afford to pay £75. I spoke to the CAB last week and they said It sounds like I should never of entered into an IVA for that amount and the they took my PIP payment as income in the first place. She recommended that I look at a DRO or Bankruptcy as a solution. I have a £900 car and I do not own any property. I have tried to pay it off with the IVA but all I have paid is the IVA fees. along with this mentally it reminds me every month that this is not my debt. So I have already contacted Creditfix to ask them to cancel the agreement, they are reluctant to give me any advice at the moment and are taking days to respond to emails, maybe due to Covid19. I have now cancelled the payment to them.. so I guess they will be in contact soon.

I am just asking has anyone else been in this kind of situation?

Willing2Learn

Which agency referred you to CreditFix for your IVA, when the debt was so small?  I hope it was not one of StepChange, CAB or National Debtline.  It sounds like you may have been misled.


If you approached a commercial debt management company, then you may have lost out financially.


Please post up your SOA (Statement of Affairs) into this thread so that we can advise accordingly.
https://www.lemonfool.co.uk/financecalculators/soa.php

nettied

Hi, Thank you for your reply, that link isn't working for me.
I believe it was National Debtline and on the paper work for the IVA is states 3.8 I consulted Financial Support Centre in respect of my financial affairs and collected information to enable a full assessment of my circumstances. Having completed this assessment the Financial Support Centre referred me to Creditfix LTD to prepare a proposal for an IVA.
It also had some mistakes on it that I told them to rectify at the time... like I have no dependents... I had 2 children that depended on me at the time.. hence the Child benefits! I don't think they corrected the mistakes. I think I saved the Watsapp conversation somewhere.
I will try and get the SOA to work on that link.

Thank you

Willing2Learn

Yeah...just checked the link...and it appears to be broken atm.  National Debtline are a trusted source of advice...

There is an alternative link...which is also failing to load.  Let us know if you still cannot get through...as we will provide you with a manual template to complete...

nettied

I can't Remember 100% if it was however in the folder that is written on a piece of paper. Doesn't really matter now.
I am not sure if It is my broadband playing up, I will try again later and post it up.
Thank you

fatbelly

I think cancelling the payment was the right thing to do and you should be looking at a DRO once the IVA is terminated (which can  take many months)

I very much doubt this was anything to do with National Debtline. 

Financial Support Centre are unregulated debt advisers based in Manchester, who also adopt the names of DFH and National Debt Service. and others. Legalbeagles have them on their radar

https://legalbeagles.info/forums/forum/money-debt/debt-management-plans/1494446-national-debt-service-unauthorised-debt-company

nettied

Thanks for that Fatbelly, interesting read, says there they only offer advice on IVAs where a client is suitable,  I think they fiddled my figures to suit, just want out of it now.

nettied

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 3 I have my 2 adult children living at home.

Number of children in household......... 

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 488

Partners monthly income after tax....... 0

Benefits................................ 780 housing benefit and PIP

Other income............................ 600[b] Student loan

Total monthly income.................... 1868[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 700

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 50

Gas..................................... 0

Oil..................................... 100 is high but the house drinks in in winter so averaged this over 12 months

Water rates............................. 13

Telephone (land line)................... 45 think this is with the Broadband I need to check that, if it is I need to delete the amount below

Mobile phone............................ 35

TV Licence.............................. 13

Satellite/Cable TV...................... 10

Internet Services....................... 25

Groceries etc. ......................... 200 for 3 adults

Clothing................................ 50 sounds alot but go through shoes on placement , sometimes I can walk 6 to 10 miles in a day and they get smelly from working on the wards.

Petrol/diesel........................... 200 use petrol to go to Uni and placement ( student nurse ) 

Road tax................................ 22

Car Insurance........................... 45

Car maintenance (including MOT)......... 40 looks high but I live in wales and roads are a mess my 56 plate clio gets battered.

Car parking............................. 10

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 45

Pet insurance/vet bills................. 30

Buildings insurance..................... 0

Contents insurance...................... 21

Life assurance ......................... 20

Other insurance......................... 0

Presents (birthday, christmas etc)...... 60

Haircuts................................ 20 

Entertainment........................... 20

Holiday................................. 20 dunno why I put that I haven't been able to have one for a while.

Emergency fund.......................... 50 rarely happeneds always something needing extra money

Pet food................................ 45[b]

Total monthly expenses.................. 1889[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 900

Other assets............................ 0[b]

Total Assets............................ 900[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
I have a total amount of £13700 debts listed on the IVA.

Description....................Debt......Monthly...APR[b]

Total unsecured debts..........0.........0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,868

Expenses (including HP & secured debts). 1,889

Available for debt repayments........... -21

Monthly UNsecured debt repayments....... 0[b]

Amount short for making debt repayments. -21[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 900

Total HP & Secured debt................. -0

Total Unsecured debt.................... -0[b]

Net Assets.............................. 900[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

I have added some comments above, some of the figures maybe a bit wrong as I'm trying to get it done quickly before the internet goes again. Thank you so much for taking the time to read this.

fatbelly

On those figures it looks like a DRO.

Do the 2 adult children  not contribute? Are they students?

Is your situation going to stay as it is now, for the next 1-2 years?

Willing2Learn

Are you a student nurse or doctor?
Have you checked whether you'd be eligible for a payment from your university hardship funds?
Do you get DSA (Disabled Student Allowance)?

nettied

Yes I get DSA I am a Student Nurse in my first year. My son is just finishing college now and the benefits for him stop in August... so I've done  the SOA without that benefit with the reduced income , if that makes sense.
My daughter was working but due to the covid19 the company she is working for has gone in to administration. We are just all looking after each other at the moment. I have been paying for my sons petrol and phone while he is in college, he is hoping to get a job once he finishes his college work as it's all being done at home... that's if he can. Just a strange time we live In. 
I qualify  2022 then hopefully I will be in a better position and just paying back a student loan.

Keep safe