www.iva.co.uk

Hi Everyone,

I've been hovering around for a while but have finally taken the plunge and contacted 2 providers to enquire about an IVA.

I currently have a DMP with Payplan which started 8 years ago and is due to finish in 2034 (when I will be 74). I have an appointment with them next week - I have 30k of debts and can afford just about 120 per month.

I have also contacted melaniegiles.com and will be talking to them on Weds.

Does anyone have any thoughts - should I stay with Payplan or would it be better to make a fresh start with another provider (if I am accepted)?

I have got myself into a right pickle to last 6 months or so, my personal situation has changed and I am now on my own, I've got 3 outstanding payday loans and would dearly like to sort myself out!! and have an end date in sight.

Any advice would be very much appreciated

Hi Hufflepuff

You have defo done the right thing in coming here. and im sure once you have spoken to another couple of companies you will work out the best plan for you.

Good luck

Hi and welcome.

Melanie comes highly recommended and does post on here. You could stay with Payplan as they know your circumstances.

Have a chat with both and of course you can ask away on here.

Hi and welcome to the forum

£120 disposable income is very low but a debt management plan until you are 74 is also very depressing and I hope that the companies you contact can find an alternative for you in order to get this debt concluded a bit quicker.

Why is bankruptcy not an option?

Paul

Something has obviously gone wrong for you if you have outstanding payday loans as well as your Payplan debts. First thing to do is to order a new debit card so that the payday loans cannot get your money before you do. That should buy you a little thinking time. After that, you can take a little while to work through all your options.

Good luck and regards.

Thanks for advice!!

I was ok with my DMP but since change of personal circumstances last year things have gone all wrong??

Thank you for advice about ordering a new debit card, thats a good idea for a little breathing space.

Will I be able to add the payday loans to my DMP or an IVA - I feel really stupid but I was desperate at the time and needed to pay the rent.

Thanks

Hi - yes you can add them to your IVA (I presume the same goes for a DMP).

Good luck and let us know how things go!

Hi, in an IVA they get added alongside your other creditors and if their debt is lower than 25% of your total debt and everyone else votes in favour so you get more than 75% acceptance they are legally bound by the contract whether they like it or not.

Debt Management Plans are not so cut and dry. An aquaintance of mine has three payday loans all for £500 alongside other debts. Entered a DMP and all her creditors have accepted the DMP and also agreed to freeze interest except one payday company who are threatening to take her to court for a CCJ. It's always worth asking for it to be included and if they do not play ball in a DMP your advisor can give you alternative routes or how you can get around it.

Hufflepuff - if you are renting and it appears you don't have a lot of disposable income, is bankruptcy not an option?

It would be cut and dried much sooner so that you could get on with your life.

Thanks again - I will let you know how I get on with Melanie Giles and Payplan.

I'm not sure about Bankruptcy, could it be an option for me?

If you have no assets then it certainly could be a solution. You would be discharged in 12,months usually and could just have to make payments into it for three years depending on your Di. All of tour debts would be included.

Hi Hufflepuff, Im new to this miself but my understanding with an IVA is that if you only have a maximum of £120 each month cause of your circumstances. I dont think it meets the minimum payment to go into an IVA. Like Kallis said Bankruptcy could be an option if you have no assist and a low DI.

Can someone correct me if im wrong in what ive said please

There are some companies that will do one with a low di but possibly not that low. You're pretty much on the ball Beano.

Hufflepuff with a low disposable income ,a neverending DMP shouldnt be seen as anything more than a treading water option.

Again with fees etc an IVA may well see a small return for creditors.

If you have no assets to protect(house with equity,ferrari etc) and your job is unaffected by you becoming bankrupt I would be strongly looking at that option.

Paul