Not allowed to retain any personal allowance

[SuperGert]

So I have just had a chat with Payplan to do a revised I&E. My husband has decided to close his business as it is not making enough money to be profitable.

We have been living off pennies at the end of each month, I haven't had a haircut since Sept 2015 or any new clothes and feel like I am living like a pauper

I asked payplan if I could request a F&F on payments made to date as I am in month 56. The answer was no, they only do that for exceptional circumstances and mine isn't one of them.

I explained that I have been using my contingency and permitted allowance to help pay payplan each month and the advice they gave me was they are going to try and reduce my payments to the amount these equate to anyway.

So I am in the same situation, I am going to have to work 50+ hours a week for absolutely nothing at the end of it, as payplan are taking every penny from me and don't care. [:(]

[Lisa Thomas]

It's not up to Payplan to put forward a variation.

If you put formal variation proposal to them and give them all the necessary supporting information they have either 21 or 28 days (depending on your terms) to them send creditors notice of a variation meeting.

Payplan will send a covering report to creditors so you might want to insist that you own covering letter is included with the variation documents so you get the opportunity to go for the sympathy vote.

Take care though some IP firms put forward a clause that if the variation is rejected then BKY will ensue. Make sure this clause is taken out.

What are your husband's plans about finding a new job?

Is he in an IVA too?

Perhaps you could ask for a payment break while you get back on your feet.

Alternatively your IP has discretion usually to reduce contributions by up to 15% without creditor consent or with their consent via a variation.

On the assumption you have a 60 month IVA with no equity extension etc there would seem to only be 4 payments left. It might be best to simply struggle to make these payments so you can put it behind you.

[SuperGert]

We are in the middle of arguing the whole equity release as they have calculated it in there favour, as a lot of people are commenting on in the forum at the moment. Look like we have another 12 months to go as they are not budging on that one!

My Husband is not in an IVA, but dear Payplan take into account his earnings even though the IVA has nothing to do with him what so ever!

No idea what is going to happen. He has been self employed for 12 years and to find a job these days is not an easy task.

I don't see why I have to struggle, as IVA's are supposed to help. We end up with pence at the end of each month, have no savings for emergencies, and I am just about existing. Payplan are very unsympathetic and are telling me to cut back on everything, including my food allowance!

Sorry for the rant, but I am fedup

[Lisa Thomas]

What is the argument on the equity point about - you might be able to challenge this.

To be fair to be able to work out the proportion of expenditure fairly this can sometimes be the best way to work it out. Without that information they have to assume 50:50 which doesn't always work in the debtor's favour.

I suggest you challenge the equity point first. If you can then you only have 4 months to go.

If not then I suggest you challenge the I&E/contributions figures and if you genuinely can't carry on making them (or a third party can't help you with a lump sum settlement) then press ahead with the variation request to accept payments to date in F&F. The alternative of BKY will not benefit anyone, including the creditors.