www.iva.co.uk

Hi all,

I'm 36 and started a DMP with Payplan back in Autumn 2009. I owed nearly £22k to 10 creditors agreeing to pay £635 a month. The payments were being made in full until April 2010 when i had an emergency operation to save my life and came out with a stoma/colostomy. After that I sunk into major depression and restarted my gambling addiction which caused my debts in the first place. Since then, some months I made reduced payments to Payplan DMP but in most instances they were on schedule. I have paid £9000 but my accounts are showing that I still owe £18k as most didnt stop charging interest rates [:(] I feel fed up and since I have been paying reduced payments last few months am expecting further trouble with creditor court action.
Payplan won't let me do an IVA (and said no from the beginning) because I could afford to do a DMP. I earn £33500 and now have a surplus of around £500. What would you guys recommend? throw in the DMP and apply for an IVA? Would they be likely to accept £8k and i spend 16 months paying that off? I feel upset that I have paid £9k and have nothing to show for it - when that £9k paid into an IVA from the beginning would probably have knocked off my debt. Also I took off HBOS, one of my creditors, from my Payplan DMP and contacted them directly to see if they would stop charging me interest. They finally said yes but when the letter came it stated it was only for 6 months and
it was also for £6k when it should be for £4k if you take into consideration the amount I had already paid them through the DMP. I have refused to pay them any morein the hope it goes to their official debt collectors ( i think Blair Oliver Scott) and I negotiate a payment on the £4500k. is this a good idea? but in any case should I go for an IVA. I don't own my property or car or anything else of value. thanks for reading [:)]

Hi - they cant stop you appying for a IVA elsewhere - However you do need to speak to a few companies (see link on here) to sort out what the best option is for you

Whether it is DMP/IVA or bankruptcy - you need to discuss all these options.

As you dont owe property etc - Have you considered the bankruptcy route ? -- again you need to discuss all your options with a few companies

HI. Without knowing the full specifics I cannot see why Payplan refused to entertain an IVA at all.

Might I suggest you pop over to www.iva.com where you will find a list of recommended debt solution providers, with reviews. Please speak to a couple of them ( the advice is free and without obligation) to get some specific advice.

Hi manicfriday - welcome to the forum - sorry to read what a rough time you have had.

An IVA may well be an option for you but you will know this better by speak to 2 or 3 profesionals to go over your situation in more detail. You have nothing to lose by seeking further advice. If you can afford £500 per month you could almost pay the debt off in 5 years with a DMP but that is assuming all interest is frozen and no fees are added which is unlikely for the duration.

If an IVa is viable for you it would be better as you have a fixed end goal to aim for and you know you are legally protected which will help your depression by giving you peace of mind.

There are highly recommended IPs and companies on here and you can look at www.iva.com for reviews too.

Regards

thanks for some quick responses there. I don't want bankruptcy because of my job and also because they may be considered gambling debts my bankruptcy would last much much longer and I would probably have to pay it all back. I am really annoyed with payplan for not entertaining the idea of the IVA from the start - they said because IVAs are normally for 5 years and since my surplus is significant I would probably be refused it.

Manicfriday - as others have said check out a few companies, on all your options. Iva is a 5 year commitiment - so the company your choose has to be right for you.

Whatever option you choose let the forum know - as you will be able to support other pople in the same situation.

Also use it for any questions you have (there will be plenty) !! - or just a good whinge.

You should consider doing the DMP yourself or switching to a different company who may be able to get the interest stopped. I do not feel an IVA is appropriate given the debt and surplus income but I do think the interest and charges should have stopped.

Was your credit file already damaged when the DMP started because the amount you paid equates to about 3% of the debt which should cover the contractual payments?

yes my credit rating was low when I started the DMP. Are all IVAs five years?

No. They can be as short as 28 days and can be up to seven years. Sometimes creditors can be paid in full and other times they receive a percentage of what is owed. It depends on individual circumstances.

thanks. if I wanted to pay it over 4 years when i can actually pay it over 2 year, would that be possible? i.e can I determine the lenght of the IVA or is it determined by the surplus amount?

Hi Manicfriday

If you agree to pay 100% of your debt plus the insolvency practioner fee, then there is no reason why an IVA should not run for less than five years. The length of the IVA would then simply depend on the amount you could pay. This would mean that you would pay more than all of your debt if you include fees. However, you can be sure that the fees addition would be less than additional interest added to the accounts over the same time period in a DMP.

Also in terms of bankrupty, the fact that you have built up your debts due to a gambling problem will not automatically mean that you get a Bankruptcy Restriction Order to extend the period of the bankruptcy. Gambling although unadvisable is not against the law and so is rarely used as a reason to extend the period of a bankruptcy order.

Hi Manic! I think you've got the wrong end of the stick about IVAs. They're not a negotiation with creditors, we agree to pay all disposable income and a pc of any payrises and bonuses for five/ six years. If the debt can be repaid in full over a shorter period then that's great, but it doesn't mean you can reduce the monthly payment and extend the term.

Why not take a look at the link www.iva.com and contact at least 2 or 3 companies to get impartial case specific advice, all debt solutions can be discussed and that way you'll know which is best for you. x

try grant thornton. there a charity and take no profit. i went with a dmp with immediate financial and got seriously conned! they took all my money and said no to an iva. im now doing one and couldnt be happier.

manicfriday wrote:

thanks for some quick responses there. I don't want bankruptcy because of my job and also because they may be considered gambling debts my bankruptcy would last much much longer and I would probably have to pay it all back. I am really annoyed with payplan for not entertaining the idea of the IVA from the start - they said because IVAs are normally for 5 years and since my surplus is significant I would probably be refused it.

If you have a gambling problem wouldn't any solution offered be of limited help the long run ? (you mention it a few times)

Wether its the horses or party poker many debts are of coursed caused by gambling beyond ones means.

Cut out the gambling and the situation can improve.

My friend lost £50,000 playing poker on line in 3yrs not often mention on this forum but out of control gambling is a growing problem in the UK a big cause of debt for some [:(]