www.iva.co.uk

Melanie and I have had our IVA since 2011 and in that time a lot has happened to us. Due to my anxiety illness I have had to reduce my hours at work to allow me a day off each week and we have found that our outgoings have increased. This has meant I have leant on Payday loans to help us out and the final straw for me was to borrow £400 after Christmas as the interest is sky high. WE have had 2 variations to the plan but to be honest I am not at all comfortable with it.I have let the rent fall into arrears again ( That has been dealt with) and my council tax (which is also been dealt with)
I don't know what to do as McCambridge have just given us 3 months grace .... I would really like to start again and just put everything into paying the IVA . Since our one started we got hit with tax credit arrears which could be put onto the IVA as it was already set up. I now feel the IVA is foundering and going nowhere. Please help

You really need to be honest with your iva firm about your use of the payday loans and work out a solution. They are not there to judge you so be open with them. Starting again would be difficult but if its no longer affordable then perhaps allowing your iva to fail and taking the bankruptcy route may be worth exploring.

Paul

If you have paid into your IVA regularly and as you have suggested reduced income due to less working hours, potentially you could ask for a reduction to your monthly payments? Or even ask where you would stand in concluding your IVA with payments made to date? If your income and expenditure shows very little surplus this maybe an option. I would be contacting your IP and have your up to date Income & Expednditure at hand. Bankruptcy maybe beneficial if you don't have any assets such as a mortgage with equity available...

It should be illegal for payday lenders to give loans to people in IVA's - to protect people in positions of vulnerability like secondtimearound

Do you have assets which would be at risk under bankruptcy proceedings? If not, then it may be worth considering this as the ultimate solution to putting your financial woes behind you.

The trouble is we are in an interlocking iva and I would not wish to put my wife through bankruptcy
Her debts within the iva are small in comparison to mine
Also we live on a private estate and it would be very awkward for my family

The IVA's could be separated, but, to be honest, none of us know your full situation and the best people to speak to are McCambridge Duffy. They are an excellent firm and, by all accounts, very helpful.

I would advise a full and frank chat to try to get things back on track.

Michael Peoples from McCD regularly posts here and takes a very sensible approach. They will not judge, but will do their best, within the terms of the IVA process, to assist.

There is no publicity about bankruptcy proceedings generally these days, and you could separate the IVAs so that yours terminates but your wife's continues.

I'd also recommend a chat with Michael, because affordability seems to be a common difficulty for you which probably needs addressing by a full and detailed financial review of your present circumstances.

Melanie - Thank you for your advice. Both my wife and I do not have assets we only have a joint HP agreement on the car . That is something I would need to discuss with Neil @ Accept.
I have been speaking to my IP who are very good however because I was honest and told them my concerns about having to go to a payday company they have sent us a letter of breach . Which is understandable. They have sent us an I & E to complete and I have told them that it will be a full and frank spreadsheet . They stated that the creditors will not go below 18p so maybe if I was to go bankrupt which isn't a concern to me how do I go about arranging to separate my wifes debts from mine so that she can continue with her IVA

Hi

I agree with MikeyM, payday loan companies should not lend to any one in an IVA, a simple check on the online insolvency register would inform them of any live IVA

Regards

I am glad we are trying to help and we will do our best not to fail the IVAs. Complete the I&E and if it needs another variation we will put one forward but it does sound like your creditors have put a minimum dividend into the IVA but without knowing the case I am only guessing.