Premium Bonds purchase

[mitch2311]

Exactly Foggy. I also sold £100 worth of items on ebay the other week.What i do with that £100 is upto me. Basically payplan have made realise any spare money i do have over each month, keep it at my house if its in a bank there question it.If its in my wallet there none the wiser

[mitch2311]

Payplan told me on the phone i could purchase £300 worth of premium bonds from money i had saved.Now there saying there passing my IVA practioner all the info. The money tonight i had in my premium bonds going on car tax,mot and service.They can then pick the bones out the £10 i leave in there!

[Niobe]

You sell on Ebay and as long as you are not a business, then anything you earn is yours.

[mitch2311]

Yes exactly. The other month i made over £200 personal items sold.So why am i not allowed to do what i want with that?

[UpToMyNeckInIt]

Hi Mitch,

I've been following your earlier posts.

It is worth reminding the forum that, as I recall, it is not you who has inherited this money, but your parents, who in turn want to 'gift' some of it to you. (Worthy of mention is the legal argument that a 'gift' and 'windfall' have 2 quite distinct definitions, and can therefore be treated differently in terms of what the IVA requires you to hand over).

I think allowing your Father-in-Law to save the money on your behalf is the best and safest option. (Either that, or tucking it under your mattress).

Forget Payplan - sounds like you have attempted reasonable dialogue and they have thrown it back at you.

I assume that you want to retain as much of this money as possible, and pay as little into the IVA as you can legally get away with (I'm with you on that one).

As you say, pay back what you owe, then accept the cash gift from Father-in-Law once you have your cert. of completion to be safe.

This money will give you and your family a well-deserved financial kick-start post-IVA.

Best of luck.

[mitch2311]

Thank you Uptomyneckinit!

Yes that is very true.My father in law has said hes giving us nothing if it will be swallowed up within the iva.Im not stupid enough to say to payplan "Oh there u go theres £10,000 yeah you take it" I dont think so.That money will be in a savings account in my father in laws name.Like wise my parents money in a savings account waiting for me. The IVA people will get there £100 a month no probs.

[Niobe]

We all agree to pay back to our creditors the full amount that we can. When we took out the original loans we were going to pay back the full amount.

[mitch2311]

Yes but be fair if we can all get to the end of our 5 years with paying as less as possible we'd be happy, with the rest being written off. May sound harsh but so are the banks ripping people off and getting us into debt in the first place. My old bank the halifax gave me a £10,000 loan even though i couldnt afford it.Thought they could hit me with late payment fee's, interest etc. Only had my loan 3 months before i went into IVA. Why pay back £34,000 when you can pay back £18,000

[UpToMyNeckInIt]

Mitch / Niobe,

You both raise some very good points.

No doubt, if Mitch had come directly into this inheritance (windfall), it would go into the IVA - as per the principle of paying back what you can afford.

But that isn't the case here. The 'gift' is conditional on it not being swallowed up by the IVA. Even though Mitch might be able to argue that the gift is just that, and not a windfall, why take the chance?

In my opinion, it is also unfair that some other posts here have hinted that this 'IVA avoidance' for want of a better phrase, is dishonest, immoral etc. Frankly if it's legal, that will do for me.

How many of us were 'sold' (at least in part) on the idea of an IVA, knowing that there would be a reasonable chance of a fair percentage of our original debt being written off?

Let's face it, many of us are probably going to come out the other end of an IVA, with a knackered car, a run down / unsuitable property and or have no immediate access to reasonable credit to rectify that. Surely therefore, anything we can do to advise other forum members to save money can only be a good thing.

If anyone wanted to pay back all their original debt for the sake of their conscious (and I respect that point of view where that is the case), there is the mechanism to do so affordably in a DMP.

[mitch2311]

Very good points. To be fair i was doing a DMP with payplan until they phoned me and sold the "Debt getting written off" with the IVA.

Il be well chuffed seeing debt written off. Its why id get no joy seeing thousands of my family's money going into bankers pockets. If i wanted to repay the original debt i wouldnt have gone into an IVA. The banks dont give a toss about us so why give a toss about them

[Niobe]

The problem with DMP's are that most of them last for decades, my own would have been for 20 years and I did not want that hanging over me for that length of time.

You took out the loans, presumably, with the intention of paying them back in full, the fact that we can't is due to circumstances beyond our control and not always because we borrowed beyond our means.

If I came into sufficient money then I would repay the debts in full.

I think we are going to have to agree to disagree on this one.

[mitch2311]

Definately. Im not saying there is a right or wrong way. I guess its different how we all view our plans.