I recently took out an IVA with Payplan for a debt of £26953.96, my creditors (eventually) agreed to £328.19 for three years rising to £450.00 for the remainder of the plan. I live with my wife and she is on my shared income. Recently she took out a loan to help pay for our wedding therefore I invoked a change of circumstances to my IVA and cancelled payment as advised by my representative at Payplan. The payment was worked out using joint income which £2790.97. This has now obviously changed as my wife is now paying off the loan she took out in her name. The first time I mentioned it to my Advisor he said it might be best to take out a joint IVA. This is not an option as she owns her own home and can afford the repayments every month. Also I have been told by other people that my payments I am paying anyway are a bit steep compared to my income and total loans.
I am having my review tomorrow and want to go in forearmed so to speak. Any advice? We can't carry on paying the current amount as it is killing us every month.
Hi. Your level of payments have nothing to do with the level of loan and is based entirely on your disposable income.
Payplan are, as far as I am aware, almost unique in using combined income to arrive at disposable income and, therefore, the IVA payment. This is a prime example of why it is so wrong ---- your wife, even though the debts are not hers, is living in your IVA too and, effectively unable to spend her own money!!
There is no reason why Payplan cannot now do a review, which might have to go to the creditors for approval. There is absolutely no reason for her to enter into an IVA too !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am with Payplan and my husbands disposable has always been taken into account at reviews and included. The IVA is for my debts only but I was told at the outset that as he had benefitted his income would also been included, I must confess I thought this was how all IVAs worked to be honest
Just an update. My review meeting didn't go too well. I was told that my partner has enough surplus income to pay back the loan. Is there any other way out of this mess? Why should my partner have to pay for my IVA? Joint income is just plain wrong. Are there any independent people I can talk to regarding this.
The fellow handling my case they and my debtors are already being very generous in letting me pay off the loans anyway!
You could consider allowing it to fail and entering another arrangement with a more helpful company ( but DO speak to a couple of firms first for specific and expert advice). Or, have you considered filing for bankruptcy ? Again a helpful firm should advise you on the ramifications of this course of action before doing anything.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
At such an early stage to discover you are unable to manage and Payplan being unwilling to assist you might as well at least consider ending it now -- as it is destined to fail further down the line at this rate, wasting more time and money.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
