Can you help me please?
I have just received a phone call from Payplan informing me that they have failed my Rhe Official Receiver has failed my IVA, I started 2 years ago, paid in full 1st year, then was out of work, and couldn't pay until November 2010, where I paids £100 then £100 in December £100 in January 2011 and as I have started a new job in January 2011 I had agreed to start paying the full £350 per month as from February my Firsy pay date.
I am very worried that they will make me bankrupt and take my house?
It is joint owned by myself and my partner, It is worth £270,000 we owe £173,000 on it.
The Official Receiver will not have failed your IVA, your company and your creditors will have though if you have not complied with it. Did Payplan agree to the non payment and then the lower payments?
I think that to catch up you would have to start paying a lot more than your agreed payments.
I'm afraid with that amount of equity in your house you may well find that you have to sell it depending upon how much your original debts were.
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
Hi Noel - did you and Payplan keep in touch while you were out of work to agree the period of non-payment and partial payments? Did they ask you to resume full monthly payments at any point?
At first appearance it seems as if communication has totally broken down if the termination took you by surprise.
If the termination hasn't gone through yet, I would get on the phone and set out my plan for resuming payments and making up the arrears. Then beg them to get creditors on-side. Redundancy is all too common these days and I would hope creditors would treat you sympathetically, particularly as you are now in a position to continue payments to the iva.
If the termination has gone through, you can seek debt advice as to whether a DMP, IVA or BR best suits your new circumstances. A site we often recommend is www.iva.com which has a list of firms and customer reviews.
Broke of London wrote:
Hi Noel - did you and Payplan keep in touch while you were out of work to agree the period of non-payment and partial payments? Did they ask you to resume full monthly payments at any point?
At first appearance it seems as if communication has totally broken down if the termination took you by surprise.
If the termination hasn't gone through yet, I would get on the phone and set out my plan for resuming payments and making up the arrears. Then beg them to get creditors on-side. Redundancy is all too common these days and I would hope creditors would treat you sympathetically, particularly as you are now in a position to continue payments to the iva.
If the termination has gone through, you can seek debt advice as to whether a DMP, IVA or BR best suits your new circumstances. A site we often recommend is www.iva.com which has a list of firms and customer reviews.
Broke of London wrote:
Hi Noel - did you and Payplan keep in touch while you were out of work to agree the period of non-payment and partial payments? Did they ask you to resume full monthly payments at any point?
At first appearance it seems as if communication has totally broken down if the termination took you by surprise.
If the termination hasn't gone through yet, I would get on the phone and set out my plan for resuming payments and making up the arrears. Then beg them to get creditors on-side. Redundancy is all too common these days and I would hope creditors would treat you sympathetically, particularly as you are now in a position to continue payments to the iva.
If the termination has gone through, you can seek debt advice as to whether a DMP, IVA or BR best suits your new circumstances. A site we often recommend is www.iva.com which has a list of firms and customer reviews.
Hi Thanks for the reply, yes I informed Payplan all the way and when in November, I knew I had this position starting January, I agreed to pay £100 November, £100 December, £100 January and after my first month's wage in I would pay £350 in February the normal amount.
I paid my Jan payment only Tuesday just gone and was told all was ok, as they had thousands in a similar position to me?
But to my surprise they Called me today and said they had cancelled the IVA ???
It seems their departments haven't been communicating with one another. I'd go straight to the top and speak to your IP to see how this can be resolved.
I would certainly ask to speak to IP directly to try and sort this out.
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
Payplan cannot just cancel the IVA and must follow the correct procedure. If you had breached the terms they should issue a certificate to that extent and give you an opportunity to rectify the breach. If you are unable to rectify the breach they should then call another meeting of creditors to decide the way forward and this usually involves a payment break and possibly an extension.
Ring Payplan and demand to speak to the IP. This sounds completely wrong and may be a mix up but unless you actually speak to the IP you cannot be certain. If they refuse to let you speak to the IP you should complain and even consider going to the regulators. This is too serious a matter to be dealt with by call centre staff.
Have you received any paperwork to tell you that you were in breach and in risk of failing? If not, then you should definitely talk to Payplan's compliance department and demand to know why this did not happen.
Unfortunately if you did not keep up with payments then your IP is entitled to fail the IVA, but they have a duty to make sure that the advice they give you is accurate. If an advisor really did tell you that everything was okay and you could make token payments then this needs to be investigated and may be grounds for a variation (if the IVA has not yet failed) or an official complaint.
If you feel that you can now commit to regular and realistic repayments in the IVA, ask Payplan to put forward a variation to creditors. You may have a history of missed payments, but you have nothing to lose as creditors can only say no - and they may just say yes!
