www.iva.co.uk

Hello,

Just made an application via PayPlan as per their recommendation.

The IP is collating the info - all the creditors letters, wage slips etc were sent today. I am on a holiday payment break with most of them as I am furloughed due to the current coronavirus situation. There are a few where I am not though and payments are due out in the next two-three weeks.

What do I do with regards to these payments? Do I cancel direct debits and not pay them? (In the midst of switching bank accounts!) or do I pay them as normal?

I have 6 creditors in total and PP have suggested £50 payment over 5 years based on the budget they did with me. I am totally new to all of this but have seen dividends mentioned? How does this work.

I feel sick with anxiety that this wont be approved. This is literally a lifeline for me after having such a rubbish relationship with money and now wanting to turn it around and stop burying my head in the sand.

Going back to our time in an iva, we stopped paying creditors once they had been notified of our intention to enter into a iva. We used the money to build a small contingency up that was much needed for emergencies in the early days of our iva.

Do you have any assets (car, house ) ? what is the total debt owing at the moment ? Did Payplan mention any alternatives in their 'assessment' ?

With a disposable income ( the IVA payment) of around £50, and subject to other criteria, a Debt Relief Order might be worth looking at.

I have a car on finance but no house or other assets.
They said a DRO would be unsuitable as I would lose my car which I need for work and with the IVA as its under £250 a month they could work it in and allow me to hang onto it.
Overall debt is £8200.
They mentioned bankruptcy and DMP but I don't like the idea of a DMP as the stress and anxiety of having to deal with each account and creditor chasing is too much and would take 22.5 years to repay given my surplus.
At the moment the IVA is the most suitable they believe (I know they would recommend with fees of course) but I need a complete cut off to any credit as I'm literally out of control and I'm constantly robbing Peter to pay Paul.