We have been dealing with Payplan and my husbands proposals have just been sent to us, I have been reading through them all afternoon but there is a couple of things I am not happy with. Originally they told me that I would have 510pm DI to service my debt and that 302 would go to hubbies IVA and 208 towards my DMP/IVA. On reading the draft proposals they are asking for 530pm. Plus 380 of it towards IVA (creditors will get 52%) and only 150 for me.
My total amount of debt is near the same as hubbies so why does he get more than me to pay towards his debt?? I know he earns alot than me but surely as a married couple, like we already do, isnt it just the disposable income split?
Also 150.00 will not be enought for me to eventually have an IVA and they will want more??
They have also quoted more than originally agreed ie 510 now 530!
Sorry to go on, but just a bit confused and miffed as I thought I had more money to service my debt, but now have got even less. I just cant see creditors happy with so little for such alot of money that I owe. Redrose xx
The tax code has gone up this month so everyone gets an extra £10 in their pay so maybe they have taken that into account - at least you won't be worse off than you thought.
Is the ratio something to do with the fact that you are applying for different agreements - I beleive the rules are different. Is there any reason why you haven't applied for a joint IVA?
When we were looking into one, they looked at how much debt was in my name, how much in hubbies and split the joint debt between us so I ended up owing more but I earn less although like you, our finances are joint. We were applying for a joint IVA and the finances are then teated as one.
We weren't happy with our proposal either, that's when we found this site. We have gone to David Mond and we are now going down a different route. I suggest you ring David or Melanie for some advice. I'm so glad we did, it saved us from losing our house!
"It's better to be in control on a small budget than to be out of control on a large budget."
It will probably be an interlocking IVA as I don't believe there is such a thing as a joint IVA. The payments may be split by either income or possibly by making sure that bothe sets of creditors get the same (i.e 40p in the pound)
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Your tax code should have increased this month. Your tax code is the amount you are allowed to earn in a year before you pay tax - your tax free allowance. You get a fraction of it each pay throughout the year. That's why you get a tax rebate if you stop working part way through the year, cos you haven't used all your allowance.
DFD told me it was £10 for everyone and took it into account when they were calculating what we could afford. My hubby and his colleagues have got an extra £10 this month. I haven't been paid yet.
I have just copied this from the HMRC website.
If your tax code is a number followed by a letter:
If you multiply the number in your tax code by ten, you'll get the total amount of income you can earn in a year before paying tax.
The letter shows how the number should be adjusted following any changes to allowances announced by the Chancellor - common tax code letters are explained below.
Common tax code letters and what they mean:
Letter Reason for use
L For those eligible for the basic Personal Allowance - 645L for the 2009-10 tax year. It is also used for 'emergency' tax codes (read more in the section 'If you're on an emergency tax code')
P For people aged 65 to 74 and eligible for the full Personal Allowance
Y For people aged 75 or over and eligible for the full Personal Allowance
T If there are any other items we need to review in your tax code
K When your total allowances are less than your total 'deductions' - read more in the section 'How tax codes are worked out'
Sorry ti doesn't read very well, it's in a table on their website:
ivas4us wrote:
It will probably be an interlocking IVA as I don't believe there is such a thing as a joint IVA. The payments may be split by either income or possibly by making sure that bothe sets of creditors get the same (i.e 40p in the pound)
You are correct, I believe interlocking IVA is the technical term, DFD referred to it as a joint IVA when explaining it to me. When our proposals came through, it said they had to be read in conjunction with each other.
"It's better to be in control on a small budget than to be out of control on a large budget."
I was told by Payplan that we couldnt do a joint IVA, as IVA is an individual agreement per person, so not sure why they didnt advise us to do a inter-locking agreements, perhaps I need to ask them? But for now, I cannot do an IVA as one debt is too new and I have to wait for it to be a year old. They will review an IVA for me later though.
I am just a bit worried that they have taken more from me than originally said, and that it wont be enough for me later for my IVA, and for now a DMP of 150.00 on debts of 27100 isnt alot!
I don't understand why this firm has sent you an IVA proposal without discussing it in great detail with you either face to face or over the telephone. I also do not understand why they are only putting forward an IVA for your husband, and you do need to get them to explain to you how they calculate the individual disposable income. If your husband earns more, then his disposable income will be higher - as it is usually worked out in the same ratio to the individual's earnings.
Hi melanie I spoke briefly to payplan on the phone, this was when they went through the fact that I wouldn't qualify for an IVA due to new debt but they would put me through for a DMP an IVA later in the year. This was when we talked about ratio of DI that would service each others debt ie 302 hubbie 208 me.
And yes I only earn 450pm and hubbies earn 1530, so I suppose that would be why he gets more. I just thought that I would be getting more than I was until receiving proposals today.
Thanks for the replies.
Also wonder whether anyone can advise us what proof of gas and electric I can send as I am on a key meter and only get the receipts when I put money on (dont keep old receipts).
Maybe, I am not sure? They had them both listed down as 65pm on the expenditure to which is where the DI total came from.
I know they are quite high but due to being on a meter that is why. I am unable to change to any other way of paying due to living in rented accommodation and thats how the landlord set it out.
That's not really high in today's marketplace - but if they need the documentation, I would just send them copies of your bills over the last 12 months.
