Failing an IVA - DMP instead?

[charlotten]

Hi

My husband and I have decided to approach our IP and ask him if he would agree to fail our IVA and enter into a DMP instead.
This came about on Friday when I was sent to the Early Pregnancy Clinic in Bristol after the stress of our IVA problems caused stomach problems. Thankfully our baby is fine but we chatted about it and we have decided we can't go on like this.
Basically, my husband is an Accountant and bankruptcy wouldn't be an option as J could lose his job. We are with DFD and they are bl*o*y useless. For two years now I have told them EVERY month we can't afford our monthly payments of £478. We have gotten in arrears with our council tax, water and energy bills because the prices increased and DFD refused to do a variation. In March we had a Notice of Breach and we wrote back saying the only option was to reduce our payments and they kept our payments the same and extended our IVA by a year without our permission.
We hate them and want to see the back of them.
A couple of weeks ago I had had enough and emailed a complaint to DFD and we had a letter from their company solicitor saying she will be in touch in 8 weeks and that doesn't help especially as we can't afford the payments this month. I have been off sick with hyperemesis gravidarum (severe morning sickness) and don't get paid for sick leave so I am £500 down this month in pay and we need to pay £400 to the council, J needs knew glasses and our car is leaking petrol and needs a new fuel tank.
I am just wondering if the IP would jump to a bankruptcy petition or would he agree to fail our IVA as we can't afford the payments and therefore would agree to us entering into a DMP? We like the idea of the DMP as we can pay over a longer period of time.

Any advice would be gratefully appreciated.

J and I have no assets, no mortgage or anything and our car is only worth £50.

Thanks

Charlotte

[MelanieGiles]

Why don't you just go ahead and start the DMP anyway, and let the IP fail the IVAs in their own time. I am sure that as soon as you cease your contributions into the IVAs, that this will force a response.

Your creditors would much rather have a DMP than a bankruptcy, and if you are going to use a company to represent you they will generally deal with all of this.

[Adam Davies]

Hi
I agree with Melanie,your health is much more important.
Work out what you can realistically afford and put this to one side[do not spend it !!]If DFD come back with a sensible resolution then you will have the money ready to continue with your IVA.If DFD do not help then allow your IVA to fail and then contact a DMP company[Andrew Graveson of Brightoak has been highly recommended on this site].
DFD have failed you,there is no point in insisting on a monthly payment that you simply can't afford.
Let us know how you get on

[charlotten]

Hi

Thanks for your comments. I am relieved now that they won't make us bankrupt.
I have another question? - some of our Creditors 'didn't vote' at the Creditors Meeting and therefore out of 10 Creditors only 5 are 'involved' in the IVA. Do we contact ALL of the 10 Creditors or do we assume that they have written off the debt?

Charlotte

[MelanieGiles]

You still have 10 creditors, the fact that they did not vote at your meeting does not excluded them from getting repaid.

[charlotten]

Thanks Melanie.

Can we organise our own DMP without the need to use professional companies?

[Skippy]

As far as I know you can do, but with 10 creditors it would be easier and less stressful to have a company dealing with them for you. As Andy says Andrew Graveson from Brightoak comes highly recommended on the forum.

[kallis3]

Payplan are also good as they don't charge any fees for DMP, so all monies are paid to the creditors. Don't know if Brightoak charge or not.

[Adam Davies]

Hi
Brightoak do charge but i would expect you to get a more personal service.
Interesting to note that under a DMP with the CCCS your creditors would be paid according to the contractual monthly payment and not the amount owed.I wonder if Payplan operate in the same way ?
Regards

[kallis3]

That I don't know as when we approached them to change our DMP company it was them who suggested the IVA. I know my stepson is with them DMP and is quite happy.

[Soulgrowth]

Charlotte ... look after yourself

Debbie

[facingittogether]

hi charlotte

you look after yourself and your baby thats what is most important right now!

take melanies and andys advice!

keep posting and let us know how you go on!

love barb x

[charlotten]

Hi

Thanks for all posts.
I have emailed our IP and laid out our concerns and how we would like an DMP instead of an IVA but that the DMP is not with them!!!

I am nervous but I have politely begged him to be openminded and not to make us bankrupt.
Lets see what he says!

My baby is more important than DFD and I have every intention of filing a complaint of mis-management against our IP once we have settled it.

I hope he agrees to it so I shall let you know.

I am terrified that he will make us bankrupt, for me it's not a great concern but for my husband it will. 10 years of Accountancy training down the drain he will be fired.

Please keep your fingers crossed for us.

xx

[Viki.W]

Good luck Charlotte and remember your baby, you and your hubby are more important, I really hope you get this all sorted, keep us posted, Viki X

[charlotten]

Well I didn't sleep a wink last night. I am petrified that DFD will make me bankrupt. We are in arrears with one months payment and they are getting £956 of us this month to pay last months and this months.
We pay one amount of £478 a month.
I haven't been able to get to work this morning because of the fuel strike.
I have sent another email to our IP literally begging him not to make us bankrupt.

Is there an expert out there who can comment?

As we are not in arrears with our IVA (DFD allow 2 months before they take any action) and we have written to them asking for their help and asking if they would consider allowing us to leave the IVA and enter a DMP, will they make us bankrupt based on that?

I am terrified. I am convinced my husband will leave me as the debts are all my fault.

I am worried that this stress is harming my baby.