IVA Help

Stevebay

Newbie here so please excuse if this has been discussed before 

Query 1 …
I failed my first IVA ( Payplan ) after 4yrs and 9months of paying into it. 

Unforeseen circumstances were harsh. 

When I started up my second ( current one ) IVA I was devastated that the amount of debt was carried over from the first IVA with no consideration or reduction even though I had paid in for such a long time. 

……Is this correct ? 

……Should it have been reduced ?  


Query 2 …
My current IP are forcing my partner ( joint IVA ) into going to work / partime even though she hasn’t worked in over 20 years, mainly down to mental health issues. 

Asking her to work now is making her mental health ( anxiety, depression and acrophobia ) even worse. 

I’ve offered to increase my monthly payment by working more shifts myself however they are insisting she does her ‘share’ in payments. 

Is this normal practice ? 

Any advice would be much appreciated
many thanks  

sourcrates

How much debt Stevebay, homeowner or renter?

Fees are high in an IVA, those would have come out of the pot first, any other charge or fee from the arrangement would need to be paid, anything left would have gone to your creditors.

Your IP can`t force you to do anything, just say no.

Stevebay

Hi Sourcrates 

Firstly thanks for the reply 

£80k & homeowner 

in my T&C’s it says my partner should seek employment / PIP / ESA ….. etc 
So could I still say ‘no’ to them ? 

PIP was not approved 
Employment is not an option ( due to her mental disabilities ) 

Next step is to apply for ESA 
however need to get a letter off the Doctor to state she is not able to work which is proving difficult  

My third annual meeting was last week.
Here’s a copy of the main part …

”I can advise that creditors are allowing your IVA to continue, however subject to the following modifications:

 

• Duration

The duration of the arrangement must be extended by 12 months, thereby increasing the overall payment term of the arrangement to 72 months. (a further 6 month period may be allowed for final administration).

 

• Benefit Application – DLA/ESA/PIP

The debtors partner must apply for DLA/ESA/PIP and provide evidence of the decision to the supervisor within 16 weeks of the meeting being approved.  Care costs may be offset once evidence of same has been provided to the Supervisor.  60% of any monies received, after the deduction of care costs, must be introduced into the Arrangement for the benefit of creditors

 

• Employment

In the event the debtors partner is refused benefits and deemed fit for work then they must seek to obtain further employment as soon as possible and a full review of the debtor’s income and expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and should commence in the month following the review.

 

If you are in agreement of the above, Please respond to this email ‘I agree’ and I shall close the meeting accordingly and await your updates on the above.

 

Should you not agree to the above, we shall have no alternative but to issue a Certificate of Termination on your arrangement, this formally bringing your IVA to an end and putting you back to ‘square 1’ with creditors pursuing you direct for all outstanding monies owed without the benefits or legal protection of your IVA. “

Any advice would be much appreciated 

Thank you 

sourcrates

Don`t do anything you or your partner are not comfortable with, with PIP you can ask for a mandatory redetermination, and if that fails, you can appeal, a lot of PIP claims are successful at appeal.

Your Dr will not give you a letter stating she is unfit (permanently) for work, Dr`s stopped doing that years ago, it`s the same with benefit awards, hardly any are given for life, 2/3 years is about the max until a re-view.

Your creditors are asking for things that have been outdated for decades, just because benefits have been refused does not mean she is fit for work, if she can`t work, just tell them that, and the creditors will have to amend their demands.

If they insist, then make a formal complaint.

It`s a load of !!!!!! and bull that they will willingly fail your arrangement, the IP is making thousands in fees from this, they won`t allow it to fail if they can help it.

Worst case scenario, if it fails, you just pay the same amount as you are now but in debt management, no one can force you to do anything in debt management, they will just have to suck it up.

Stevebay

Thank you again for your reply 

To apply for ESA, it says they need a doctors ‘not fit for work’ letter from doctor ? 

Has this changed now ? 

I’m concerned they would fail the IVA as I thought they would back me into bankruptcy forcing me to sell my home ( which is the only investment I have ) 

that would be the biggest scare for me 

sourcrates

I believe you can get a temporary sick note still yes, you can self-certify as well.

Although potential bankruptcy is mentioned as a possible consequence of IVA failure, what usually tends to happen is the debts just go back to debt collectors to chase.

Although as a homeowner, I can understand your concerns here.

As someone who has been through an IVA, all I will suggest is to question anything you don`t understand or agree with, don`t be afraid to argue your point.

As long as you are seen to be trying to comply with creditor requests, you cannot help the outcome can you.

Good luck.

sammyjammy

If your partner hasn't worked for 20 odd years then she won't be entitled to ESA anyway, she could (and probably should for state pension purposes) claim it for NI credits only but would not get any money.  If you are working then its very likely you wouldn't be entitled to Universal Credit which is the income based equivalent.

Stevebay

Thanks for the reply 
I’m only applying for ESA to appease the IP, my income is over the limit of other benefits like UC. 

How does it work for NI credits only ? 

We’ve never claimed anything before so new to it all tbh 

fatbelly

Stevebay said:

”I can advise that creditors are allowing your IVA to continue, however subject to the following modifications:

 

• Duration

The duration of the arrangement must be extended by 12 months, thereby increasing the overall payment term of the arrangement to 72 months. (a further 6 month period may be allowed for final administration).

 

• Benefit Application – DLA/ESA/PIP

The debtors partner must apply for DLA/ESA/PIP and provide evidence of the decision to the supervisor within 16 weeks of the meeting being approved.  Care costs may be offset once evidence of same has been provided to the Supervisor.  60% of any monies received, after the deduction of care costs, must be introduced into the Arrangement for the benefit of creditors

 

• Employment

In the event the debtors partner is refused benefits and deemed fit for work then they must seek to obtain further employment as soon as possible and a full review of the debtor’s income and expenditure must be undertaken by the supervisor. The contributions shall increase after taking into account any increased costs in respect of travel and should commence in the month following the review.

 

If you are in agreement of the above, Please respond to this email ‘I agree’ and I shall close the meeting accordingly and await your updates on the above.

 

Should you not agree to the above, we shall have no alternative but to issue a Certificate of Termination on your arrangement, this formally bringing your IVA to an end and putting you back to ‘square 1’ with creditors pursuing you direct for all outstanding monies owed without the benefits or legal protection of your IVA. “

Only just seen this and I believe you should complain that clauses 2 & 3 are illogical, ill-informed, unfair and should be deleted.

Your partner is not part of this arrangement.

ESA was merged into UC and so fresh claims cannot be made. There is such a thing as new-style ESA but this is contribution-based and so again she will not be able to claim.

I do agree that if she qualifies for PIP (only under 16s can claim DLA now) she should claim it. However these payments are for her care or mobility needs, not to prop up the family or pay for your debts. What's their phrase? 'introduced into the Arrangement for the benefit of creditors'. Appalling.

PIP has nothing to do with employability. Some people receive PIP and also work. Some people receive PIP and don't work. Some are unable to work and unable to claim PIP. 

As for your IP forcing a bankruptcy, I once talked to an IP who works for one of the major companies and he said it happens 3 or 4 times a year. So not impossible but unlikely.

Is this still Payplan that you are with?