So I've been in an IVA with Payplan for a couple of years now and I'm not doing well. I was given redundancy on health grounds a few months ago after a prolonged absence due to depression and at first just fell into a downward spiral - It took a dalliance with suicide to start to pull myself back up and over the last couple of weeks I've started to browse job sites and so forth with a view to finding employment once more.
I've kept up with my repayments during this time, paid my bills and so forth, but have just spent too much from the redundancy pay. I didn't consider this at the time - indeed, I conversed with my caseworker via email prior to my departure from work and informed her that I'd be getting a lump sum and several weeks pay in lieu of notice, to which she was sympathetic. No mention of having to surrender a chunk of the money, and frankly it's not something I gave a second thought to.
A couple of days ago, I spoke to someone else from my IP and have been informed that this would in fact be subject to the windfall clause, something I hadn't been informed of in prior correspondence and honestly didn't know. To say my heart sunk would be an understatement. It's not that I don't have enough to get through - I do - but that I spent money during this time which I now know should have gone straight back into the IVA. I know it's a b***** stupid mistake to make, but to say my head hasn't been screwed on straight would be an understatement.
I absolutely don't have a problem paying this money, I just can't do it now. If it means another year on the end of my IVA, fine; lesson learned. I just can't bear failing because of it. I can't stomach what that would mean for my family and now I'm back at rock bottom. Can't eat, can't sleep, just can't bear to face anything. I don't really know what I hope to achieve by posting this, but I don't really know where to turn or what to do.
Agree with your IP now how this can be resolved. Show them the email evidence of your first conversation with payplan where you informed them of the situation but were not informed of windfall clause. Explain to them that you are willing to add on to the end of your iva ... I am sure they will find a way to help and resolve it.
Glad you are now focusing on new employment opprtunities - lots of great recruitment websites out there including monster, universal jobsmatch, indeed, twitter, facebook and linkedin. Keep looking and something we come up - dont give up hope!
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Keep looking forward ! Explain, as Luluj suggests, and offer to repay anything owing by means of an extension. By the sound of things Payplan were complicit in this error and should be able to help.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
By posting this you have received some support which in turn I would hope you will find some words of comfort and reassurance that all is not lost and you will finsih your IVA successfully.
Hopefully a year tagged on will sort all this out for you. Hang in there and do use the forum as support.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
You would normally be allowed six months living expenses anyway which are not deemed a windfall. Therefore if you have spent less than that figure and maintained your IVA payments you are not in breach and have nothing to worry about.
I would think it better that any money now left is offered as a full and final settlement given the fact you are not working so go back to Payplan. I would also suggest you meet with a benefits adviser to see if you are entitled to any assistance while you search for work and for when you return.
You need to speak to the IP atv Payplan as it appears you have been given conflicting information by the staff.
Mr. Peoples, the IP did in fact float that possibility. I've spent far too much, but still have the sort of money available to hand over that would count as the extra 'on top' of the six months and due to my unemployment, a settlement was suggested; I fear that this will be rejected as it's not going to be a big sum after everyone takes their cut, but perhaps the fact that I'm not exactly going to be much use to anyone while I'm jobless means it will be considered a better outcome than making me bankrupt. I don't own a house or a car or anything.
I also paid £1500 today which I received last month from shares after exiting employment; I'm not seeking to hoodwink anyone, I know what I've done wrong, I overspent considerably and then thought I'd have to scrape through the next few months and so on.
Last edited by Low on Tue Nov 25, 2014 4:29 pm, edited 1 time in total.
Go back to your IP as their plan seems the best way forward. Creditors do not want to punish you and bankruptcy means they lose most if not all of what is left.
I am sure creditors will be sympathetic to a full and final especially support from Payplan.
I'm just worried because it's not a huge amount (approx 10-12% of remaining debt). I'm just so sick. I lost my job due to depression but I wish I were back because I honestly can't bear the thought of bankruptcy and the impact it would have on my family.
Speak to Payplan and they should be able to help. Do not be afraid of your IP as your contributions pay their wages and you are employing them for a service. This should be easily resolved as I do noyt think you have done anything wrong.
May I ask what would happen if, after making a F&F I found myself in a new job? After all, I was told that the F&F process usually takes three months. It's not going to be anything particularly impressive at this point but the thought did cross my mind.
Once the f&f has been accepted a new job will have no bearing. Until the completion certificate is issued lottery wins will have to be paid in, as will inheritances or any other windfall.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sorry to ask so many questions...but when they say the process will take three months, do they mean from the point the offer is made to the point the certificate is issued rather than taking that long for the creditors to make a decisions?
I would imagine that to be the time to the creditors meeting ( they have to be given 28 days notice), from the time you make the offer to the IP, as they will need to verify stuff and draft a variation before calling the meeting.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As the others say, talk with your IP, most of us have had the odd blip during our iva journeys. Don't beat yourself up about it, I'm sure that a solution is there. Good luck with your job search.
