Payplan being vague

alextheg

Hi. 

Finally tackling my debt situation so I called Payplan at the weekend. I went through my debts , income and expenditure with them.

Some of the figures seem generous in my favour and looking at figures they have sent I’m sure that some figures have been duplicated on my expenditure. Seems odd .

Due to my over 60k debt , no assets to protect I thought bankruptcy would be suggested.

I’ve given all figures including for my wife. They have given me a figure that I can pay to creditors each month but that doesn’t allow for my wife’s commitments debt wise. Thy have suggested I get my wife to do a joint claim with me.

I can’t help thinking they are steering me towards an IVA. I’m supposed to be getting a call back from them to see what my wife wants to do. As yet they haven’t actually told me what their recommended debt solution is and finding this very odd .

u was under the impression that Payplan are reputable but their vagueness is worrying. Does anyone have any thoughts on them or this situation ?

Grumpelstiltskin

Why not ring one of the other debt charities?

I would suggest Stepchange ( make sure it is the correct website ) an IVA doesn't sound like the best way forward.

alextheg

I think you may be right . As I said , thought Payplan were  reputable .

sourcrates

60k of debt, no assets to protect, no house at all, no beneficial interest in one ?

I would take bankruptcy over IVA every time.

Only other choice is debt management, and with those kind of numbers that`s likely to take a very long time.

IVA would be min 60 months/max 72 months, you would require a steady income for those 6/7 years, quite strict budgeting, any pay rise/windfall, must go to your creditors, not very appealing.

Bankruptcy covers all your debts, discharged in 12 months, gone from your file in 6 years, may have to pay an IPA for 3 years, better than the above in my opinion.

By all means take advice from PayPlan, but don`t be swayed into a choice you don`t want to take, do your own research as well, pro`s and con`s of each option etc, the only possible reason you would opt for an IVA is if you had property to protect.

alextheg

Thanks for the advice Sourceates.

No assets , not a homeowner etc.  In my mind BR is my only way forward and as much I know it’s going to be a tough three years , it’s the only way for me to get out of the mess I’ve created.

IVA’s seem so open to corporate abuse and I’ve heard very little good about them. 

I’m just rather disappointed with the experience I had with Payplan at the weekend, it didn’t take a genius to realise thwart we’re steering me towards an IVA. Maybe I was unlucky and didn’t get a good advisor…………

At any rate. I’ve decided to stop paying money I clearly can’t afford to creditors, time to save the BR fee and get things in order.

Regarding creditors, should I tell them my intentions or just ask for my accounts to be put on hold while I get debt advice ?

sourcrates

If your intending to go bankrupt it doesn't really matter.

The debt collection process takes many months, years even sometimes, you`ll be clicking the button before they get though there first batch of collection letters.

ManyWays

What is your wife's debt situation? Payplan may well be hoping for two lots of IVA fees but her debts may need to be sorted out. Also in bankruptcy she would be liable for any joint debts if you have any. Is she paying a reasonable proportion of the household bills?