iva , 4 years and starting to rethink my tactics
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Dear all
Please can you help me with some advice/ tips?
I have a history of large credit debt, ( many credit cards, consol loans, payday loans, ) and following a failed dmp, I entered into a 5 year iva (equity clause applies)
The iva is large 73k is the total debt and so far only 63k is proven.
The iva proposed that I pay 81p in the pound and this was agreed.
In Jan of this year I had paid 32k but was made redundant in Feb & paid the windfall demand of 19k , so now have paid in approx 53k
Unfortunately, due to stress from previous job & debts I am looking for another job but my health has taken a turn for the worse and I'm having to have treatment.
I contacted my iva firm to ask if its possible for F&F settlement and so far they have given me 3 different amounts of what is left to pay ( 7k, 16k & more recently 50k? and that my payment to creditors had increased to 100% due to my redundancy) I queried the 50k stating that this would mean total has exceeded my original debt by 27k?.
Additionally I have been in contact with Fin Ombudsman to ask if its possible to claim refunds on payday loans (30% of my iva balance) and they advised that it was although my iva firm did not advise me this on joining. Also, FOS have said its also possible to claim irresponsible borrowing from cc firms too if they had checked properly that I could afford to pay the credit back.
Is it too late to star these reclaims & also would any refund be classed as a windfall and go to my iva? If debts are wiped out by creditor would this reduce the original total of my iva and mean less to pay in?
My other thought was to maybe see if I can get a F&F agreed & then reclaim afterwards.
Sorry its so much info but any advice is much appreciated
Please can you help me with some advice/ tips?
I have a history of large credit debt, ( many credit cards, consol loans, payday loans, ) and following a failed dmp, I entered into a 5 year iva (equity clause applies)
The iva is large 73k is the total debt and so far only 63k is proven.
The iva proposed that I pay 81p in the pound and this was agreed.
In Jan of this year I had paid 32k but was made redundant in Feb & paid the windfall demand of 19k , so now have paid in approx 53k
Unfortunately, due to stress from previous job & debts I am looking for another job but my health has taken a turn for the worse and I'm having to have treatment.
I contacted my iva firm to ask if its possible for F&F settlement and so far they have given me 3 different amounts of what is left to pay ( 7k, 16k & more recently 50k? and that my payment to creditors had increased to 100% due to my redundancy) I queried the 50k stating that this would mean total has exceeded my original debt by 27k?.
Additionally I have been in contact with Fin Ombudsman to ask if its possible to claim refunds on payday loans (30% of my iva balance) and they advised that it was although my iva firm did not advise me this on joining. Also, FOS have said its also possible to claim irresponsible borrowing from cc firms too if they had checked properly that I could afford to pay the credit back.
Is it too late to star these reclaims & also would any refund be classed as a windfall and go to my iva? If debts are wiped out by creditor would this reduce the original total of my iva and mean less to pay in?
My other thought was to maybe see if I can get a F&F agreed & then reclaim afterwards.
Sorry its so much info but any advice is much appreciated
0
Comments
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Hi,
Any refund would be classed as a windfall unfortunatly.
The amount you have paid into your arrangement, may not be quite as much as you think, remember there are the IP fee`s to deduct from this, they can total quite a few thousand pounds, disbursements to creditors happen at intervals throughout your arrangement, fee`s are also deducted at certain points too, if you are unsure, as for a statement.
So you will pay back the 73k, plus fee`s.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
It isn't your IVA companies responsibility to suggest you try to reclaim payday loans before starting an IVA.... they have no reason to believe you were missold them that is your judgement.
In your situation I would request that a f&f settlement variation on contributions made to date is put to creditors due to ill health meaning that you are currently not in the position to return to employment and therefore do not have a sufficient disposable income to make contributions. Also state that your stress is heightened due to the outstanding IVA. Ensure that the variation states that you were made redundant and fully complied by paying in the lump sum of 19k. You will need to provide an updated I&E showing no disposable income available.
As you have been fully compliant, had a very good p in the £ agreed at the start, have paid in a lump sum from redundancy and can show no disposable income to continue payments I feel that you have a high possibility of the creditors agreeing.0
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