Hi I am after some advice please. I'm currently in an IVA with payplan but it's not going very well. I'm behind on my payments and it's in danger of failing. The reason is because I genuinely can't afford the payments. When they set my budget up they took our household income into account which includes my part time income and my partner's full time income and said I needed to pay nearly £400 a month. I only earn £1000 a month and still have to pay my share of mortgage, bills plus childcare. The IVA is in my name as are all the debts, they are nothing to do with my partner whatsoever. We split the cost of our bills etc in half but he doesn't pay anything towards the iva. Don't know if that seems harsh but as I kept all the debts a secret from him for years and none of them are his then perhaps it's not! He doesn't earn a massive amount so why should he? Anyway payplan refused to take this into consideration at all which is why I have a high monthly payment and why I struggle to pay it. I've since read some reviews of payplan on here and have seen others have mentioned about the household income thing, are there other companies that just take a single income into account? I really don't know what to do, am so stressed about the whole thing. Any advice please? Thanks in advance.
How far are you into your IVA ? You could have a chat with another, smaller and more sympathetic, firm to discuss your options in detail. However, allowing this arrangement to fail does not guarantee the creditors accepting a new one.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Payplan are really bad with this - you can let your arrangement fail as Foggy says and go with another firm, but it's not guaranteed to be successful as he says.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This type of situation seems to be quite common and shows the importance of taking advice from the independent sector and not just relying on bank funded operations. Paying £400 out of £1000 seems extortionate so you should demand a complete review of the file with the IP. If you pay half the bills then that is fine and your partner has no liability to the debts.
It is your right to speak with the IP and if you do not get this resolved to your satisfaction then you have the right to complain but hopefully it does not come to that.
Demand that a variation is called to reduce your payments to the true affordable level, that any arrears are to be ignored and there is to be no extension to the IVA. Again this is your right and your IP must call the variation. If creditors reject then you can fail the IVA, petition for bankruptcy or propose a new IVA with a different company. These are obviously options now but it could be better to get the current IVA sorted out amicably.
Hi thanks for quick replies. I have said to them before that my partner's income shouldn't be taken into consideration as he's not paying anything towards the iva and it has nothing to do with him but was told that in order for it to go ahead the full household income had to be put in. So I can ask for a variation to be called? How likely is it that they will accept this? I went with payplan as my parents had already used them but they didn't have this problem as they had joint debts. I thought all companies would insist on household income which is why I didn't bother looking further. I'm nearly 2 years but it's already been extended for a year because of missed payments.
Your IP has no choice about putting forward a variation. They have to do it. It will be up to creditors to decide whether or not to accept it. 75% in value of creditors VOTING have to vote in favour for the variation to be accepted.
insist that your covering letter is included in the variation pack so creditors can consider your position (and hopefully sympathize).
Unfortunately Payplan don't like to exclude the other partners income - hopefully they will agree to calling a variation meeting and you can get this sorted.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Its a bit of an odd situation I suppose as we don't share our income. We each have our own bank accounts, no joint account, all the bills come out of my account and he pays in half that amount at the beginning of each month & then we pay our own bills like car insurance etc out of our own accounts so we don't share any remaining income. So if I ask for a variation for the reasons that I don't want my partners income taken into account will they actually allow that if they insist on the household income being used?
The other thing you could do is become a 'lodger' and just pay rent and your normal bills for the remainder of the IVA
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Unfortunately it makes no difference that he has that disposable income, he won't put any of it towards paying the IVA as it's mine. Probably sounds harsh but I'm the one that racked up the debts and never told him so.... I've always been honest about the household income and I've tried to explain to them before that my partner's income makes no difference to the amount I actually have left to put towards the IVA but they haven't taken that into account which is why my monthly payments are so high. I've just sent payplan an email to request a meeting and I've explained the situation so will see what happens. I'm sure they are still going to say that my partner's income has to factor in the budget so I don't know what I'll do as there is no way I can afford it as it is.
Payplan will take all of his income into account when assessing the household bills even if he is not part of the IVA.
Are you on the mortgage Kelly? If so then that might explain why there is an extra 12 months in lieu of any equity you may have in the property.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Ah I see. That makes sense and I don't think that's been included before as don't remember that being discussed. Have an appointment to go through it all next week so fingers crossed I'll get it sorted. Thanks everyone for your help.
I am afraid that Payplan do not operate as other firms do -- they base the disposable income figure on HOUSEHOLD income (incorrectly and unfairly in my opinion).
It is always worth putting a request for a review forward, but I don't hold out much hope ( however I would be pleased to be surprised!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I can only agree with the above. Do not let this slide and with common sense you can see out the rest of the IVA paying what you can afford towards your debts. Demand the variation and see what creditors say.
