I've Really Messed Up - Any way back?

[Shining]

Good luck with job search, talking to IP is key here and although I can imagine it won't be easy especially if you get a little anxious it has to be done. Pop it all in an email initially and ask them to call you when they've read it maybe? Offer a solution within the email and see if you can come to an agreement.

[Low]

I've just realised that on my income / expenditure sheet I've been spending more on the IVA than my surplus money from the start. Now with working tax credits being gone completely, even with a rise in housing allowance my 'surplus' is -£10.

No wonder it's been such a slog. Am I misunderstanding this, or is the IVA supposed to be reflect my surplus income?

[Michael Peoples]

The IVA should be based on your surplus income and affordability is key. Explain this to the IP and hopefully they can get your IVA closed down.

[Low]

Just wonder if I could ask for a final bit of assistance as I prepare to speak to Payplan again...I've been holding off so that I could visit my GP (who has deemed me unfit for work) and, because Payplan request that the money is available at the time the offer is made, sell as much as possible to ensure that I can make the offer and get through the month. I can claim ESA although I know this can take a couple of weeks to come through.

My lump sum + pay in lieu of notice was, I think, £7997

Previously, I earned an average of £770 per month from employment. I've lost working tax credits (approx. £270 per month), £21 per month from child tax credits and £30 per month towards council tax. So that was £1091, which multiplied by six leaves £6546. (For disclosure Housing benefit has ostensibly increased yet due to the lump sum being counted as savings for the year I received a bill applied retrospectively which renders that null and void for five or six months).

So that leaves £1451. I can top this up to around £1700. It's hard to know whether this is worth putting forward.

[linrog]

aalways worth a try x

[Jules79]

I found myself in a similar situation regarding losing tax credit payments as we'd apparently been overpaid the year before. This left our monthly surplus -£136.

I was in a very emotional state and couldn't see the wood for the tree's. I finally bit the bullet and spoke to my firm. They were so very understanding and did so much to help us.

I firstly asked about a F&F with payments made to date to which I was told no, the moneys received would be enough to cover fee's etc. I spoke with my mom who had just moved house, she said she would lend us £3K as one off payment to clear the IVA. Along with our PPI the company said this may have been a possibility. As luck would have it we received a substantial PPI payout which thankfully secured our F&F with payments made to date plus the PPI money. We had no cause to lend the money off my mom.

I think we ended up only paying 6p in the £1 towards our debt and I have read on here that other people have had theirs excepted at less than that.

Its definitely worth asking the question, explain fully your situation. I have been in a very dark place myself before. Its debilitating and extremely stressful. You need to take a step back, think about how far you have come. This may seem like the end of the world but it really isn't, there are people out there to help you.

I hope it works out for you.

[Foggy]

Creditors, though hard to predict what they will do, are not the ogres we come to expect and can be very sympathetic to an offer according to the circumstances.

[Low]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Jules79

I found myself in a similar situation regarding losing tax credit payments as we'd apparently been overpaid the year before. This left our monthly surplus -£136.

I was in a very emotional state and couldn't see the wood for the tree's. I finally bit the bullet and spoke to my firm. They were so very understanding and did so much to help us.

I firstly asked about a F&F with payments made to date to which I was told no, the moneys received would be enough to cover fee's etc. I spoke with my mom who had just moved house, she said she would lend us £3K as one off payment to clear the IVA. Along with our PPI the company said this may have been a possibility. As luck would have it we received a substantial PPI payout which thankfully secured our F&F with payments made to date plus the PPI money. We had no cause to lend the money off my mom.

I think we ended up only paying 6p in the £1 towards our debt and I have read on here that other people have had theirs excepted at less than that.

Its definitely worth asking the question, explain fully your situation. I have been in a very dark place myself before. Its debilitating and extremely stressful. You need to take a step back, think about how far you have come. This may seem like the end of the world but it really isn't, there are people out there to help you.

I hope it works out for you.

Thanks for that.

I know that I was an idiot for overspending when the redundancy came in...I suppose spending has been a way of medicating depression for me and I had a monstrous relapse on being ill-health retired from my job. Not only had I been off for months due to my fragile mental state, I now had to accept that I didn't have a job. I still fault PayPlan for not telling me that a chunk would be owing when I emailed them announcing the IHR, but that doesn't excuse what followed.

At the moment, it's as though I'm constantly finding new things to worry about. For instance, I've sold everything I possibly could that I bought during my spree (and lots of odds and ends that I've had for years) so that I'd have enough to pay the creditors (even if it's only what's due from the lump sum) and get through the month. Even though this is money I'd have had anyway if I weren't such an idiot, I haven't slept for two nights because I'm scared they'll see the PayPal transaction on my bank statement and count it as separate income.

I've worked out that, after IP fees, were my offer to be accepted the creditors would have received just under 13p in the pound over the course of the IVA. Thing is, when I was in work and not in the midst of a protracted breakdown the projected return was 42p. My total debt was just over £18,000.

[Jules79]

What you need to remember is that you have contacted them with the information, they didn't assist you in the best way and consequently you spent what you thought was your's. Mistakes happen, they cannot send you to the gallows for it. I have been in the same situation regarding the not sleeping, when we don't sleep our emotional state deteriorates significantly and we therefore don't see the logic in any given situation.
If you have attended counselling before I would advise you seek to return for some support and guidance during this difficult time.
Not only are you bereft from losing your job, you are also dealing with loss of identity and trying to deal with your mental/emotional wellbeing. These events are enough to send anyone spiralling.

The creditors can be very sympathetic if you make them aware. They cannot help if you don't inform them.

Our overall debt was £52K, the payment accepted was £18k which was made up mainly from £14500 PPI refunds.

We are so very good at giving ourselves a hard time, what you must remember is you took the correct steps in order to correct your debt situation. You have made payments to pay off some of the debt. What more can you physically do? Worrying and not sleeping doesn't solve anything, it just makes us more vulnerable & very poorly.

Think about the positive steps you have made. I used to panic taking my kids to McDonalds thinking that if they checked my bank statement they would see that I'd spent money which wasn't on my I&E

Totally unnessecary when I look back. First things first contact your IP, I broke down in tears when I made the call. They were very compassionate given my situation. Explain as fully as you can, give them the figure you wish to offer as a F&F, if they say no then they will HAVE to arrange a variation meeting as you have no surplus to offer them anyhow.

Take some deep breaths, bin the negative thoughts and challenge them with a positive.

Good luck and keep us posted