www.iva.co.uk

We have been in a DMP with Payplan since July 2009 having racked up debts in excess of 120K. We have struggled at times to meet our payments which we have been able to increase year on year despite neither of us having any pay rises. We missed one payment when we had to have some building work done that was not covered by insurance. The majority if our creditors have continued to charge interest despite our best efforts. To date we have repaid almost 150K but still owe around 12K. My husband lost his job last month and received a settlement of 10K. We have offered this to Payplan as a settlement figure and are currently awaiting responses from our creditors. Today we had word that a number have accepted our proposal - but at the full amounts owed - and we have yet to hear about some of the larger debts upon which interest is still being charged.
We are distraught - at his age, there is little chance of my husband finding further employment and my wage would not allow us much spare cash to continue our DMP. I have sent an email outlining our worries and frustrations and asking for advice , but it just seems wrong that Payplan told us that by using their services we would be able to repay our debts and that in most cases interest would be frozen. Calming words of reassurance needed, please!!

Why carry on with the dmp if companies are adding interest? Was an iva looked at as an option?

Paul

Hi Scaredycat, you have done fantastically to clear that amount of debt in 4years

Have you considered negotiating with the creditors yourself to offer the £10k in final settlement of your debts?

Many of your debts may have been sold on or passed to debt collection agencies so you may find they will negotiate you.

You should really check and see what is still owed especially if creditors have continued to rack up interest. It may be worth offering the £10k as a one off IVA which would clear you of debt legally once and for all.

Thank you Michael - but is that not something that Payplan should be advising us to do - according to them we owed one amount and we kept telling them that it was more because of interest. We kept asking them to contact our creditors to try to stop or reduce interest , we wrote to the creditors ourselves. We have been very upfront with them from the start and have told them we only have the 10k to offer to the pot. We still do not have figures for three of the creditors although I have statements for 2 out of the three - Payplan have yet to get a settlement figure from them. Surely if we pay the 10 k over to Payplan and it is sent to those creditors who have responded and accepted then the amount left will have to be retained until Payplan have a settlement figure from HBOS?? But wont that be seen as giving preference to our other creditors?!!The uncertainty of it all is making me quite ill and I can not afford to be off work!!

It would not be a preference unless you subsequently went bankrupt and even then it would be difficult to prove 'intent'. I cannot speak for Payplan and what they would advise as I do not have full details of your case but it sounds like you have not been treated well by creditors.