Payplan

[jc4]

Hi, I was posting about this sometime before Christmas. My husband and I are both on IVAs through Payplan and have been since July 2007. From March 2007 we were on a Debt Management Plan, also through Payplan. Over the past couple of weeks we have been trying to work out why we have no money all the time and I think I know why. When Payplan worked out our income and expenditure for DMP, they had us with a surplus income of £172-00. However, when our file was passed to their IVA department, they came up with surplus income of £422-65, which is the combined payment for both our IVAs. I know we should have read the paperwork more thoroughly at the time, but we were desperate to get the IVAs accepted. We had initally wanted to do my IVA and my husband to stay on DMP, but Payplan were insistant that it was worth going for both of them at the same time. We have compare the I and E for the DMP and the IVAs but cannot understand how they arranged it to make us have so much extra surplus. I am now convinced that Payplan knew we didn't stand a chance of being able to keep up the payments, but just wanted to make a bit of money, namely their fees, out of us before we realised we couldn't afford it. We are flat broke. The 50% of any additional income which they say the want, we haven't got as all of our money is going to the IVA. Is there an independent person, the Financial Ombudsman for instance, who we could ask to investigate the way in which our IVAs were handled? The next payment to Payplan is due on Tuesday but I really feel like cancelling the standing order before then. Furthermore, about a month ago, Payplan rang my husband to ask if he wanted to take out IVA Payment Protection!! How do they think we could afford that? We are seriously considering bankruptcy but can't afford the fees. We have nothing to look forward to, we can't even treat ourselves to going out for a drive as we might not be able to afford the petrol and my husband needs the car to get to work. Please can somebody help. We are desperate.

[Chris30]

You should of read the paper work before you signed it. I was paying 180 into a DMP with them and they made it clear that they would need £215 before the IVA department would even look at my case to propose an IVA.

Once my IVA went ahead they sent me a standing order form clearly showing the ammount per month I had to pay them... did you get the same form??

Im not an expert on here but I would of thought if you was to cancel your standing order and stop paying them your IVA could fail.

[MelanieGiles]

If there has been no change in your financial circumstances, then I cannon see who this firm can have increased your disposable income so much - but you also share the responsibility for not checking the figures properly at the time. Where did you feel that the additional income was going to come from?

If you feel that you have been badly advised, you ought to firstly take this up with the IP concerned and ask them for an explanation. If you get no joy with this then you could refer the matter to the Financial Ombudsman or their regulatory body, but I rather feel that the matter will be referred back to yourselves for agreeing such a high repayment in the first place.

Have you considered whether bankruptcy proceedings would now be a better option, and do you have any assets which would be at risk under such proceedings?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jc4]

I already said in my posting that we should have read the paperwork more thoroughly, we knew what the payment was going to be, it is only now when we have no money that we have sat and wondered where they expect us to find the money. They must have known that we couldn't afford it.

[jc4]

Melanie, I know what you are saying is right but as I said, we were desperate to have the IVAs accepted that we just agrteed. In our papers, the original offer (combined) was actually £60 pound less than what we had to agree to pay. On the day of the Creditors meeting, the IP rang and told us it would only be accepted if we agreed to the increase. We weren't even given any time to think it over, we had to give the decision on the phone straight away. This is the only time I have actually spoken to the IP, on times I have rang since it is always someone different.

We do have our own house with about £10000 equity but nothing else which could be called an asset, but we can't afford the BR fees

[Adam Davies]

HI
Work out your own income and expenditure figures for essential living and see how different it is.Then ask Payplan to seek a variation to reduce your payments,you will find that they will be reluctant to do this as your IVA is only a few months old.However they may have a clause within your IVA that allows them to reduce your payments by upto 15% without a need of a variation meeting
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Adam Davies]

How much was your unsecured debt going into the IVA ?

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

This is yet another example of someone not really understanding what they were signing up to, and this firm's name crops up time and time again. You really do need to see if your IP will agree to put forward a variation to the terms for you, and the first step in this process will be to submit a revised income and expenditure statement comparing your actual figures to those proposed to creditors - who will want to understand why the changes have occured.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jc4]

My husbands debts were £80,000 and mine were £42,000. It is written into the Chairman's report for both of us that no reduction in payment can be made in the first two years so I doubt that Payplan would even consider this. The only difference in income from the start of the IVA and now is that my husband had a small pay rise, about £10 per week, but since almost everything, i.e.petrol, food prices, house insurance, gas and electric, has increased, this pay rise is worthless. We just don't know what to do.

[jc4]

Can any one tell me what the situation would be regarding equity if I went bankrupt and my husband stayed on IVA? Thanks

[MelanieGiles]

How much equity do you have in your property at the moment?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jc4]

When we had the valuation done just before the IVA in July 2007, there was about £10000.

[MelanieGiles]

So that is about £5k each? How would you intend to address this in a bankruptcy, as your husband is unlikely to be able to acquire this from your Trustee. Do you have friends or family who could help?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jc4]

Possibly, my son may be able to borrow this amount. So, does that mean that if one of us stayed in IVA and the other went bankrupt, the OR would only be interested in the equity of the person going bankrupt and not the total equity?

[MelanieGiles]

Correct - but the OR will also be interested in your share of the disposable income as well, and you could therefore be paying monthly contributions under either an Income Payments Agreement or Order for the next three years. This will, however, be subject to a re-assessment of your Income and Expenditure by the Official Receiver.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp