Feeling absolutely dreadful!! Have been in a DMP with PayPlan since July 2009 , hubby now has lost his job. We have offered and given Payplan 10 k (my husband's settlement ) as a final settlement against our debts of circa 14 k. Have now paid the 10 k to Payplan and are now receiving default notices and on speaking to PayPlan have now been told we should have been told to complete a new I and E as the creditors have turned down our offers as we have previously offered over 3 k a month ! Have now been informed on my salary alone we can afford 200 a month as a payment to creditors. Feeling really let down by PayPlan - if they had said to complete a new I and E we would have , our creditors have turned down ( mostly) our proposal to lodge 10 k and we are now receiving default notices!! We have nothing left to give.
I hope Payplan can sort this out for you as they are funded by the banks and their contact details are provided to everyone in financial trouble by the very creditors who are now hounding you. The amounts of money you have repaid are breathtaking yet you are not being given one ounce of credit for that.
DMPs are not legal contracts so find out how much is actually still owed. Payplan can at least do that for you and perhaps you could then speak to an independent insolvency firm and maybe propose IVAs based on the £10k which I assume you are able to get back!
Last edited by Michael Peoples on Fri Nov 22, 2013 8:57 am, edited 1 time in total.
If your creditors have not accepted your offers you could consider proposing a full and final IVA - have you spoken to payplan about refunding your money?
Speak to a few insolvency practitioners about your options before you make any final decisions
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Hi - all excellent advice above from people in the industry. Do ask payplan to return your money and investigate a couple of three other companies to take that all important case specific advice from. Hopefully the 10k can be offered as a full and final thus putting an end to your debt worries at least. All the best.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I don't think we can as we will only have an extra 200 to spare on my salary alone! PayPlan have said they will send a new I and E to our creditors to see if they will settle within the 10k we have lodged - not looking promising though!! Add to that the suspension has not gone on the car!! Just feel so let down by it all. We were led to believe that the creditors would accept 10 k against approx. 14 k of debts - no mention was made of completing a new I and E back in September when we realised my hubby would likely lose his job!!
I sincerely hope that the 10k is accepted for you. Hoping hubby gets a new job very soon too. One of our others may have some added advice for you but do make sure you claim anything you're entitled to during this period.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I am surprised that Payplan didn't ask for a new I&E when negotiating a full and final settlement because creditors usually ask for an updated I&E before considering the settlement offer.
Do you know how much payplan offered each of your creditors?
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Please don't think I'm being "funny"- but if I had effectively 180k left after paying morgage off & moving costs, I'd sell up, pay off debts & downsize or move to a cheaper area.
An iva is ALOT of hassle for 14 k of debt. 6 years of your life is in financial limbo. Credit file is stuffed up & you can't remortgage or get a morgage while an IVA is active.
IVA COMPLETED & CLEAN CREDIT FILE.
An old bible proverb says this: the rich one rules the poor, and the borrower is a slave to the lender.
It seems to me that an IVA would have been better from the start because while there would have been fees to pay, interest and charges legally must cease. You would have repaid your creditors in full by now so this whole issue would be moot. Did Payplan not suggest this option since they are the debt collectors for the banks?
We were expressly told that an IVA would not be the best course of action because of the equity we had in the house. Moving was not an option as both children were still in secondary school. Downsizing was not an issue either as our property is already too small for us!! We decided against re mortgaging after taking advice as the prospect of having to repay huge amounts for 15+ years at our ages was terrifying. Our debts originally were around 130K , over the last 4 1/2 years we have managed to repay over 150K ,year on year we have managed to increase our payment to Payplan despite neither of us receiving pay rises, we have at all times been open and honest with PayPlan and all our creditors asking for interest to be frozen or reduced. We also paid 240 monthly into Cover Your Payments which actually could not help us as my husband "left" his work. (It was either resign or be sacked" as at 55 his face no longer fitted the corporate image!)
We are now dealing with more senior staff at Payplan who are trying to renegotiate with our creditors to ensure that the 10K is used to its best!!
The equity is irrelevant as your creditors would have been repaid in full by now so the property would never have been needed to be touched. £240 per month insurance seems crazy too because had you not been sold that your creditors would have been cleared by now also. It may be worth investigating that policy and see if it was missold like PPI because if you got that back there would be no debt left. It may be worth speaking to someone in a claims management company to see if there is any chance of recovering the insurance money as I would have no idea but it is worth looking into.
I hope this gets resolved quickly as Payplan would have received thousands of pounds in commission from the banks so they can earn their money now.
Thank you Michael - we will wait and see what happens with PayPlan contacting the creditors re our new I and E figures. We just feel that despite our best intentions we are still in debt , still receiving default notices and still racking up interest from some of the creditors!!
Had you entered an IVA at the time your credit file would have been cleared by in 2015. Because of what has been done to you your credit file will not be cleared until at least 2020 and I wonder if that was properly explained to you when you entered the DMP.
