Question about my IVA

[lisaMB]

Hi guys,

I have been on this forum a while but for some reason the site would not accept my password and had to make a new account..i hope everyone is well

Its very complicated so you may want to grab a cuppa lol

Ok, well...My husband fell ill last year when we were 7 months into an IVA, at this time we both had IVA's. Eventually in december my husband lost his job due to impaired capability due to ill health.
Since december we have applied for esa and pip and in a few weeks i will be applying for carers allowance.
We had a 6 months break on the IVA's and unfortunately my husband had to come put of his IVA as we had not heard back from any benefits by the time we had to start paying towards the IVA. I do still have my IVA.
We have been awarded a group in esa so will be getting backdated aprox £500, which is being awarded to my husband.
He has also had a report back from PIP which suggests he may get standard daily living and mobility...this will mean that in a few weeks he will be awarded aprox £2500 in back payments

This is where it gets confusing... As it is in his name would Payplan expect me to pay this into my IVA regardless?

I have 49 payments left on my IVA which would add up to aprox £7000. Considering my husband is unable to work and the future work prospects are very bleak and i am unable to work due to being his carer...
If i offered them £3000 do you think there would be a possibility they would accept this as a full and final payment?

(I have written to my husbands creditors to arrange small monthly payments, his debt is not as high as mine)

My IVA would have been £7000 to pay back over the next 49 payments ...BUT as my husband is no longer working and we are having to live off benefits, i have had to ask to lower my monthly payments to £100. I have not yet done another budget because we are waiting for confirmation of what benefits we are in receipt of...however going by my budget at the moment we are not able to technically 'afford' the iva and unlikely to have £100 surplus once all the benefits have written to confirm or deny.... so with that in mind IF they accepted £100 for the 49 payments then technically i would only owe then £4900 so £3000 would not be too far off the full amount.


I know that is awfully long winded guys but i would appreciate any help, we have been through hell the last year and my head is a total mess with figures...so any advice would be greatly appreciated. x

[Foggy]

Hi Lisa ... you have both had a bit of a rough ride of late!

I can only suggest that you speak to Payplan as they have their own, unique, way of looking at things!

Other than that .. do you own your own home or are you renting ? If renting, give serious though to bankruptcy to draw a line under the whole business once and for all.

[lisaMB]

Thank you for your reply Foggy.

Yes, we have been through a lot in the last 12 months.
Im terrified that if i speak to Payplan that they will want it all and not have it as a full and final payment. As my husbands name and he is not legally bound to pay them any money any more.
We were going to offer them a full and final payment to clear my debt as my debt is huge - however my debt has not occurred through ruthless spending but loans for funerals and loans to repair cars for my husband to get to work..which have just spiralled
Anyway IF payplan were to accept the full and final payment we would have applied for a DRO for my husband.

I would consider bankruptcy but i would lose my car..and my husband is unable to go anywhere without the car due to his condition...and as the car is worth about 5k 09zafira im scared they will take that from us.

[MelanieGiles]

If your husband's IVA has terminated, then no-one has any call over his money in your IVA. I think that, given the circumstances you have described, that the offer of £3,000 in full and final settlement is a good one - and if I were acting for you I would be very happy to put that forward for you.

[lisaMB]

Thank you so much Melanie, I have been so worried about him losing all his back paid money to my iva and not having anything to show for it.
So that is one less thing i have to worry about x

[Michael Peoples]

I agree with Melanie and we certainly would propose such a variation. However you need to speak to your own IP at Payplan in case they have a different viewpoint!

[lisaMB]

Payplan do not allow me to speak with my IP...I have asked to before and they have flat out refused.

I have done some research into benefit payments and have adjusted my budget this afternoon, in doing so IF we get what we should be entitled to then we should in theory have aprox £200 surplus per month..I have had to overhaul the whole of our budget..and have added on all benefits..so this is a hypothetical figure of what he should be entitled to from the advice i have been given from cab.

The £200surplus in more than my repayments, which without the reduction i have at the minute is £157...bearing in mind i have to also take into account my husbands debt repayments which i am currently waiting to arrange with the individual creditors.

Everything over the past 12 months has taken its toll on me mentally, not only am i a full time carer to my husband but i have three small children, currently on a ridiculously high dosage of migraine medication and suffering depression.

I can't physically cope anymore with the debts hanging over our heads so if payplan decide not to accept my offer i don't think i have much choice to at least consider bankrupcy..at least we will have the backdated money to buy anther car if they refuse the full and final payment.

[Foggy]

To be honest, Lisa, the very real possibility that you would go for bankruptcy should be put to the creditors in your proposal for the F&F.

If they accept they get whatever you are able to offer ...... if they refuse, they get nothing.

[lisaMB]

Should i just write my case officer a long winded email explaining everything and then offer the full and final payment explaining that if this is not accepted i will file for bankruptcy?

I feel horrendous about doing it, i feel like i have failed in so many ways, but the reality is if i continue i dread to think what kind of mess i will be in this time next year and it is the only way i can alleviate at least some of the stress were under.

[Foggy]

Don't feel horrendous -- you must do whatever protects you and your family. If anyone has failed it is not you or your husband.

[lisaMB]

Thank you Foggy.

[country girl]

You sound as though you have been through a horrible time and I do hope you get things sorted. I wish you the best of luck.

[wiggle1]

What a dreadful time you have had, sending lots of virtual hugs. I do hope that things work out for you.

[lisaMB]

Thank you country girl and wiggle1

Im hoping there is a light at the end of the tunnle of this horrible mess x

[Michael Peoples]

Creditors are very sympathetic towards illness and variations are accepted daily for closure under such circumstances. It is a disgrace that you are not allowed to speak to your IP and I am sure the regulators would not be happy to hear this. In our firm we try and deal with issues without referring everything to the IPs but if a member told a client that they are not allowed to speak to their IP ever, we would have some serious training issues to resolve!