IVA query

sbarks

Hi guys 

New here , and feeling fairly scammed after having read a few posts about IVA 's ,  in August 2022 , I entered into a IVA with PayPlan , my total debt was 14000 , this included a CCJ for 4000 which was due to finish in 2024 and his now removed as been on file 6 years ,  I do not own a home I just rent , my car was worth 1200 , I had or have no other assets , PayPlan said because my money left over at end of month was more than 75 pounds , I did not qualify for a DRO , I was at that time on benefits , and  in 2023 i retired and am  now on state pension ,  my monthly payments were 50 pounds for first year , now on 75 pounds per month on second year , then in August 2025 I will be paying 145 pounds per month for 3 years , I phoned PayPlan and they still maintain I do not qualify for a DRO , am I being scammed so they make their 4000 pounds fee ? Am I better off Failing IVA and going bankrupt , feeling fairly annoyed as I do not think I have been advised by PayPlan in my best interests but theirs only .

sourcrates

You can`t go bankrupt for such a small amount of debt, an IVA was probably not the best idea, but we are where we are.

You could stop paying, it will take about a year or so for the IVA to officially fail, until it does you will still be protected from any further action.

Once things settle down, whoever you still owe money too will write to you, I suggest you inform them you are on state pension and can`t afford to pay anything, with that in mind would they consider writing the debts off.

You need disposable income of £75 or less, (you don`t include debt repayments in this figure) to qualify for a DRO, that is a line in the sand, so if you want to pursue that avenue again in the future, make certain of your budgeting before you apply, because even a penny over will disqualify you, if your paying £145 to an IVA, then you would not qualify for a DRO would you.

ManyWays

my monthly payments were 50 pounds for first year , now on 75 pounds per month on second year , then in August 2025 I will be paying 145 pounds per month for 3 years
Why does your IVA have your payments increasing?
Are you getting pension credit? And other income? 

ManyWays

sourcrates said:

You can`t go bankrupt for such a small amount of debt, yes you can - it may not be a good idea of course, but you would not be rejected for bankruptcy and if only income state benefits there would be no question of an IPO

if your paying £145 to an IVA, then you would not qualify for a DRO would you you may well if the £145 is unsustainable and Payplan have just set it too high

I think we need to know more about the IVA.