Iva worries

Toothfairy69 · 4 November 2018 at 4:11PM

Hi this is my first post, please bear with me!!

In 2016 my husband and I were accepted on to an IVA with PAYPLAN. All has been well and we felt that the process had been very well explained at the outset.
A few weeks ago we had a copy of the annual statement that is sent to the courts. I have discovered that there is in excess of £2000 just sat on my husbands account as a surplus, it was from a ppi claim. When I queried it I was told that on no account would we see any benefit from this even though we were told at the outset that we would have a portion to enjoy for ourselves. I then queried the fact that none of our creditors have received any money since the outset even though we had paid for life insurance in the early days which was £1000. When this was paid we were told that payments would then start bei g distributed as per normal procedure. I have now been told that this won't happen until we have paid in £4000. I feel as though the goalposts keep changing with regards to our well being.
Our son was contribution £30 per week but has been made redundant and therefore has little or no income, he is waiting for universal credit. I have told payplan that this is the case and that whilst we are keeping.a roof over his head he is unable to pay board as he has to clothe himself and pay for travel. Their response was that his sister should pay more from her student finance which is preposterous when she only gets the minimum and commutes to uni everyday as it would be financially crippling to live in halls, she give us £200 per semester which euqtes to £15 per week. They have also made us make savings on our budget and we have had our transport costs cut, even though it probably costs about £6 more to put 20 litres of fuel in our cars, and they have wiped out our contingency so now we are unable to save for home improvements or Christmas. I feel like we have been penalised for ensuring that our kids are happy and safe and ensuring that our son especially can still function as a normal 19 year old man. This all feels like a black clouds and a huge mistake at present. I was always led to believe that Tey would help us in sticky situations but clearly this is not the case. Any advice is greatly accepted and I apologise do this long winded epistle 😞😞

Craig1981 · 5 November 2018 at 7:23AM

usually the first year into an IVA is to pay off their fees, so creditors may not receive anything until fees are paid off in full. check your original contract to see if this is the case or not. they wont pay creditors monthly, usually every few months.

if your sons contributions were classed as income, then you need to speak to the IP again to advise that currently the income has decreased. they may offer a variance in the amounts paid, however, they dont need to, if the payment is going to be too low.

does your daughter contribute? do you still receive child benefit for her? if not, she, like your son, will be classed as non dependants. i know it sounds harsh, but the IVA wont care about this, as they are adults and no longer your responsibility to look after them financially.

as for PPI, all claims and money go directly into the IVA - havent heard of some of the money being given to the customer. even after completion of the IVA, this will be the case

Toothfairy69 · 5 November 2018 at 8:02AM

Thank you for your reply.
Our daughter contributes £200 per semester and then she pays for her own travel etc. At present our son is waiting on universal credit but he needs to pass his driving test which will increase the target area to gain another apprenticeship, so after £26 for an hours lesson he only has £26 for all his other stuff such as clothes and bus fares, which to be honest he's managing well.
We have been made to feel its out fault that the company he worked for went into liquidation, I have offered them documentary evidence to that end as well. I have requested a call back from them to try and sort it out so we aren't too uncomfortable and then add to the fact I need a new washing machine and have recently had to purchase a new, to me, oven. Lots of questions needing lots of answers. It could be a long phone call.

fatbelly · 5 November 2018 at 8:05AM

They should be able to scale down your payments by up to 15% without a creditors meeting

The supervisor will be able to reduce the contribution by up to 15% in total (relative to the original proposal or last agreed variation) without referring back to creditors, to reflect changes in income and expenditure, such change to be reported in the next annual review.

sourcrates · 5 November 2018 at 12:06PM

fatbelly wrote: »

They should be able to scale down your payments by up to 15% without a creditors meeting

Problem is, these payments still need to be made up, only a creditors meeting can permanently reduce the OP `s monthly payment.

Any under payment usually has to be made up in the same financial year.
Disbursements to creditors usually happen around half way through the arrangement, and again when the IVA completes, if you cannot continue with the current level of payments, then you must get your IP to arrange a creditors meeting and propose a monthly amount you can comfortably afford.

Toothfairy69 · 5 November 2018 at 7:13PM

Thank you for your comments. But there is one last question. The money that my husband has sitting there as a surplus, are we able to use that to help our payments? I know when we overpaid they transferred some of the overpayment from one account to the other to cancel out an undetpaymen(I pressed the wrong button🙈).

TakeAwayKing_2 · 12 November 2018 at 12:13AM

Have the creditors in your husband’s IVA been paid in full?

Mermaid89 · 16 November 2018 at 5:07PM

Toothfairy69 wrote: »

Thank you for your comments. But there is one last question. The money that my husband has sitting there as a surplus, are we able to use that to help our payments? I know when we overpaid they transferred some of the overpayment from one account to the other to cancel out an undetpaymen(I pressed the wrong button🙈).

Is your husband on a joint Arrangement with you? If yes, then no - the PPI will go to your creditors and you won't see it.

PrettyKittyKat · 17 November 2018 at 10:42PM

sourcrates wrote: »

Problem is, these payments still need to be made up, only a creditors meeting can permanently reduce the OP `s monthly payment.

That is incorrect. An IP has the discretion to reduce payment by 15%, unless there is a modification preventing this. This 15% reduction does not have to be paid back. Only payment holiday or part payment holidays do.

sourcrates · 18 November 2018 at 12:48AM

PrettyKittyKat wrote: »

That is incorrect. An IP has the discretion to reduce payment by 15%, unless their is a modification preventing this. This 15% reduction does not have to be paid back. Only payment holiday or part payment holidays do.

In My personal experience my payments were reduced at first by 15%, those missed payments were added to the end of the arrangement, I was told in no uncertain terms only 6 payments at this reduced rate could be made.

A permanent reduction in payments would require a creditors meeting.

PrettyKittyKat · 18 November 2018 at 9:50AM

sourcrates wrote: »

In My personal experience my payments were reduced at first by 15%, those missed payments were added to the end of the arrangement, I was told in no uncertain terms only 6 payments at this reduced rate could be made.

A permanent reduction in payments would require a creditors meeting.

In that instance your IP authorised part payment holidays. Or your modification may have prevented it (usually says something along the lines of 'A payment of at least £x must be made' where the X is the agreed payment level).

It is usual for a 15% reduction to be authorised for 6 months at a time and reviewed every six months incase reduced bills and/or increased income means it can return to the originally agreed level, however it is IP discretion as to how many times they authorise it. The IP would report the 15% reduction to creditors in the annual report.

15% reductions are rare because usually the change that has caused the payment to be unaffordable means even a 15% reduction is still unaffordable so a variation is required, or the payment level is low so a 15% reduction is negligible. However I had these authorised on several occasions and saw them on many IVAs that I reviewed.

Iva worries

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free