Dudley council agree to IVA then say its not possible on public debts ? Advice appreciated.

[Cryptic1973]

Hi Foggy,
Thank you for the thoughtful comments, it is basically to go bankrupt if they dont sort this out, im simply fed up of the stress etc.

I would never simply stop paying without a back up plan, after all i did start all this in order to pay back as much debt as i could, but they need to sort it out and quickly.

Regards

[Foggy]

What is your position regarding house ownership / equity ? And is there any threat to your employment in bankruptcy ?

If BR is an acceptable alternative and Payplan can't support you in any acceptable measure it is a serious contender. Yes, you wanted to pay back as much as you could ( as we all do), however, circumstances conspired against you.

[Cryptic1973]

Hi Foggy,
Council property , and it wouldnt affect my employment at all. but i would still prefer they sort it out quickly and fairly to be honest. i just want the service i expect and was led to believe i would receive.if i am pushed to bankruptcy i will take no pleasure in it, as i really legitimately want to pay off as much debt as i can.


So heres hoping something good happens within the next few days, again thanks for the help and interest everyone

[Foggy]

I know how you feel, Cryptic. I, too, took the IVA route over BR solely to repay as much as possible. Unfortunately, in my case, it didn't pay off and caused the breakdown of my marriage. But, I have to say, GT were excellent throughout my troubles and very supportive. My IVA has finished now, all bar the shouting, and, thanks to GT I can at least rebuild from a clean slate (well ... once the completion certificate is issued).

Fingers crossed for you that, as you say, something good happens within the next few days. If not, at least you gave it your best shot.

Thinking out loud ..... as you are not too far in there is the possibility of failing, clearing up the council and re-starting with a more supportive firm.

[Cryptic1973]

Hi,
I would like some gentle advice please. I am at the stage now where after some very deep though i dont feel i can trust payplan again ( they seem a littel incompetent ) and am very worried seeing other reviewers problems / nightmares with payplan ( i know this can happen with other companies too and that many people have had a good experience with payplan ) i am worried about the future service i will/will not receive, please see ( http://www.reviewcentre.com/reviews117703.html. )

I will just explain a little more, obviously most people have read the rest of the post so your pretty much up to scratch with the original problem with payplan and the council .

My wife has Fibromyalgia and chronic fatigue syndrome and i have just found out i have pretty bad arthritis in my knees ( ive been putting off going to the docs trying to convince myself i was ok ) , unfortunately my job relies on me bending / kneeling frequently and its becoming very painful, it wouldnt stop me working immediately but who knows how long they will last ? . Secondly we are both suffering a great amount of stress from the obvious iva problems, to add to this we just had to get rid of our car because of a hike up in the insurance and now sending the two kids to college / school via public transport is actually more expensive than own my car was.

I am therefore considering the following plan , taking a 6 month holiday from my IVA, paying back the council in full and then going bankrupt. does this seem a reasonable thing to do?. I live in council property , my job wouldnt be affected and i dont own anything thats worth anything. I have very little disposable income from my job, I entered my iva wanting to do the right thing but with all the stress etc i just want the quickest way out now , i am approx 8 months into my iva.

also , not to be cheeky - is there any way of getting the money i paid into payplan back , as i feel i have adequate proof they have not followed through with their part of the agreement - IE contacting creditors and taking the pressure off us, in fact they very rarely keep in contact with me to even give me word on exactly whats happening and i cant keep racking up the phone bill calling them.

Thanks for all your help everyone

[Foggy]

Hi, there are several forum members with FM /CFS /ME ( me among them) so can sympathise on that score. I also have osteo-arthritis

Anyway --- given the circumstances BR might not be a bad solution as an IVA or DMP might not be sustainable in the long term.

I do fee it is a bit cheeky to propose a 6 month payment holiday with the intention of going BR at the end. However, to allow the IVA to fail you must miss three months payments, without agreement. It will then take while for Payplan to issue the failure documentation which the court will require. So --- I guess the 6 months will accrue that way.

You will also need to get together the court fees for BR -- just over £700 per person.

You will not be entitled to get any of the money already paid to Payplan. These will go towards the nominees fees ( in preparing and presenting your IVA ) and then supervisors fees ( for work done after the IVA was accepted ).

I am afraid ( and this in no way should be the case) that contact with the larger firms is very sparse -- they rarely contact us minions unless they want extra money !!

[Cryptic1973]

Hi Foggy,
its actually them who proposed a holiday after ensuring me previously that they were right and the council were wrong, then all of a sudden changed their tune. its only me going bankrupt my wife isnt included in any of this. I know it seems a little cheeky of me but its the only way i can save the money for bankruptcy, i only work 24 hours a week and rely on family credit to up my income.

I would save the £700 and hope i get them to waive the court fees as i claim benefits of sorts.

Regards

[ginger323232]

You may get a deduction on court fees - but you will still have to pay a certain amount

[Tina Shortland]

Hi Cryptic 1973 sorry to read the stress for you and your wife continues and seems to have got worse. I cannot see the point of having your IP administer a 6 month IVA break if you are definite you are going bankrupt at the end of it to be honest. The sooner you can go bankrupt the better so as to relieve you of the ongoing stress. Of course it is always disappointing for all concerned if an IVA fails but sometimes there are good reasons to take alternative action and yours is completely understandable. If you discuss with your IP your intention you can stop your payments to your IVA now giving you 3 months money to pay to the council (if the debt is still deemed valid). Your IVA will then have failed and your IP can then formalise the failure. You continue paying towards the council debt whilst discussing with the local court about voluntary bankruptcy proceedings informing your Official Receiver that you have an outstanding commitment to Dudley Council which you will need a further period of time to pay. Any contact from creditors at that point will be a waste of their time as you are going bankrupt any way which you can tell them. You can then either continue paying Dudley Council at the rate you were or see if you can negotiate reduced payments so you can begin collecting money for your bankruptcy fee at the same time. The sooner you can officially begin the proceedings the better and remember it will be on your credit record for a further 6 years from the date you are made bankrupt, not from when the IVA started.

Keep us posted Cryptic and I hope your wife is coping ok and getting the help she needs too.

[Cryptic1973]

Hi Tina,
Unfortunately without the 6 month break and possible the 3 months later to default i cannot possibly save enough money for bankruptcy and pay the council.

So at the moment i can see this being my only option.I'm just hoping there is no reason a judge would refuse my bankruptcy being filed for.

Regards

[canaries]

Won't the council debt be included as part of the bankruptcy. I.e Written off.

[Cryptic1973]

Hi,
I suppose it would actually, however im still not sure with the way things are whether i could save the £700 in 3 months , it would be taking a great risk, and if for some reason i hadnt got the bankruptcy money at the end of the 3 months i would be in even more trouble.

[Skippy]

You don't have to go BR at the end of 3 months. You may be contacted by your creditors but it doesn't matter if it takes you longer to save.

[Cryptic1973]

Hi Skippy ,
I didnt know that so thank you - it may come in handy for a month etc, but i couldnt have the stress of creditors phoning, sending letters etc. because of my wifes health.

[Skippy]

To be honest it may well take longer for the news to filter through that your IVA has failed. Remember how long it takes for them to update their systems to show that the IVA has been accepted!