tried to contact them and have heard nothing back

[dcl]

And the final response now after I've spent the afternoon in tears because of the earlier telephone call with them is that as long as I maintain my current payment arrangement as set out by the IVA that my creditors will get their 25p in the £ minimum dividend because their accounts department will review the fees at the end of the 5 year period and make adjustments. Can you advise if I am being led down the garden path and will still face a huge bill at the end of the arrangement? If they do review the fees surely they are now just bumping the fees up in the early years in case something goes wrong or if I suddenly find money to offer a settlement. I am more confused than ever right now and still concerned that at the end of 5 years of managing on a budget I will end up BR anyway.

[MelanieGiles]

This is not the correct way to be running an IVA, but if your IP is prepared to put in writing to you that so long as you pay 60 monthly payments he will guarantee a 25p dividend by adjusting fees then you have had a good day's work!

What I find quite alarming is that you have had to highlight this to Payplan - as it seems that they were unaware of their own problem.

By the way they are obliged by statute to give you a breakdown of their charges to date - insist upon it whilst you have the upper hand.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[dcl]

I requested to have this in writing shortly after the telephone conversation but I'll wait and see if it actually happens.

When it comes to the fees breakdown I was informed that they are required to give this to the creditors but not the debtor. Is this true?

[MelanieGiles]

You might like to draw this IP's attention to paragraph 3.5 of Statement of Insolvency Practice No 9 - Remuneration of Office Holders, where it is absolutely clear that if you, the debtorm requires details of his remuneration then he is obliged to provide this information.



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[dcl]

Hi Melanie

I today received this in an email from my ip;

Just to confirm that you proposed to pay in £340.00 x 49 and £521.00 x 11 over the course of the arrangement. When these payments have been made and the Supervisors fees have been taken the creditors will recieve the balance of funds in terms of their final dividend. Irrespective of the dividend they receive this does not effect yourself.

I will confirm with our accounts department what the final dividend to creditors is estimated to be and will inform you in due course of the figure.

However, in my chairmans report after the creditors meetng the following sentence was in there;

'Failure to pay unsecured non-preferential creditors a minimum of 25 pence in the pound shall be deemed a default of the arrangement'

Do you think I need to go back to my IP now and get them to clarify this as this seems to say that the IP is not bothered about the dividend but I see it as if I don't pay 25p in the £ then I will be made bankrupt.

[MelanieGiles]

Absolutely - your IP is taking no account of the modification in the Chairman's Report. I feel as if you are doing his job for him at the moment!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[dcl]

I feel like I'm doing there job too and paying them for the privilege of it!!

[dcl]

Actually, I've just sent them another email and will be ringing them in the morning first thing but obviously because they're spending time on the case they will be charging me, can I ask for them to take in to account that the reason for doing so much work on my case this time is due to their mistake and I shouldn't be charged for their incompetence.

[MelanieGiles]

Absolutely - and this time I suggest you ask to speak to you IP directly and not a staff member.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[freelili]

hello

I am really sorry that you are having these problems dcl and are more than likely adding fee's simply by asking for some reasurance from payplan.

I am really quite concerned about my own situation also. I entered a temp DMP with payplan with a view to moving on to a full and final settlement IVA 'at some time in the future'. This was the very wording. Payplan have worked really hard for me and I have been very satisfied with the way they have dealt with the harrassment from creditors. (I still do not know how they have achieved this). It is highly likely that my position will change in the very near future and I have advised them accordingly, however, their attitude changed from very polite and helpful, to irritated and annoyed. I only asked them to clarify a few points that I was unsure of. Know I feel quite upset and very unsure.
I would be really interested in what you feel about this company as I really do not want to make a huge mistake myself.

LILY

I asked God for a solution and have to live with his reply.

[dcl]

Hi Lily

Up until this weekend for the last 3 years Payplan have been brilliant but that was because I thought they were in control of my IVA. This doesn't appear to be the case but I am not trying to put you off of Payplan as if they can get this back on track for me then I will be quite happy to recommend them. However, it will be the next few days for me that decides this. If I end up bankrupt then you can count on the fact that I will be actively promoting how bad they are.
Also your IVA fees will probably be on completely different terms to mine time spent basis and this will avoid the problem I am currently having.
I hope this helps.
Actually you could probably help me too, I have recommended a friend to Payplan for a DMP and they are concerned about creditor harrassment can I ask how Payplan coped with it for you?

dcl

[freelili]

Hi thanks for your reply

Actually I was in a right state when I first went to them, I would say not far off suicidal. I had seen a financial advisor, who was really good and she passed me over. Life had been a bitch up until then, It was all explained to me in clear terms, they were extremely friendly and said that they could definately help me. Creditor harrassment was at its worst and I had no-way of paying all my creditors what they were demanding. I told them everything, including that mine was a temporary problem. They were fantastic, my creditors include HSBC, they were the worst and almost drove me to BR. Payplan stopped them, simple as, I actually phoned my own phone today just to make sure it hadnt been cut off, thats how good it is, HSBC write for the loan occaisionally, but this is nothing, compared to what it was, I really dont want to come off the DMP and put up with that again, I am not sure about doing an IVA with them though. I signed a form and they took care of it all. It was easy, I was on cloud nine when I left there. This is my own experience, I hope it helps, one thing though, what you pay over every month is not what your creditors get. I am sure there are cheaper companies out there but as mine was purely temporary, my incentive was getting some breathing space from the crocs, I felt I was dangling over.

I hope this helps, and I also hope you will continue to update.
thanks.

I really hope your IVA coninues without the fear of BR you are having at the moment, it really dosent seem fair at all and I really feel for you.

LILY

I asked God for a solution and have to live with his reply.

[dcl]

Thanks for that.

I'm a little concerned though because Payplan are the ones that offer a free DMP which is why I advised my friend to go with them but you are saying that not every penny goes to the creditors. Can you explain a little more please, do they take some money too?

They currently haven't missed any payments but will this month, the majority of their debt is with HSBC, how long did it take for HSBC to start chasing?

Sorry for all the questions I just feel bad if I've given bad advice to a friend now.

I will keep you posted on how Payplan deal with my IVA issue.

[MelanieGiles]

There is no such thing as a free DMP! Most debt advisory of companies deduct at least 15% plus VAT of your payments by way of a monthly fee and distribute the remainder to your creditors. Even those who call themselves charities!


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[dcl]

So how can Payplan put this on their website then;

No set-up costs or monthly fees - unlike some debt management companies who charge an initial set-up fee in addition to a monthly fee, Payplan does not charge fees for debt management plans

They say they are given money by creditors through donations, is this a load of rubbish that should be reported to somebody??