Help urgently

[nosasani]

Looking back at my previous message, Payplan have come back to me. my IVA has failed for additional borrowing outside arrangement from the payday lender - so obviously honesty didn't help me AT ALL.

I need help, advice and what would u suggest the best way forward will be for the future?.

Perhaps bankruptcy is my only option?

i was paying into the iva since nov last year. and payplan confirmed no payment has been made to the creditors. ALL fees.

Excellent.

so now ive got my old debt, plus interest and now the payday lender.

please help ASAP.

Payplan advised itll take about 2 months for the IVA failure notice to come through but for me to re apply for an IVA would be a bit silly because the reason for the failure will make the creditors more inclined to just say no.

thanks

[Broke of London]

Hi and please don't panic! First, speak to your IP direct and explain why you borrowed money...there may be extenuating circumstances they will consider. If the IP doesn't overturn the decision, I would set up a DMP straight away. If you can stick to a dmp without taking on additional borrowings then your creditors may consider you for an iva in say 6-12 months. BR is an option, but it is not your only option. Now that your debt journey will be longer than planned, it is worth considering. Let us know how you get on.

[nosasani]

Who should i set up the DMP with?

Thanks

[Foggy]

Hi. Bad news and not at all helpful of Payplan. I also hope those that keep harping on about the Charity organisations being free see your experience! However, that isn't going to help you!

I would have a word with another IP --- if a case could be put forward as to why you needed to borrow, another IVA might still be an option. Might I suggest you email a couple with full details (probably easier than phoning in the first instance).

[nosasani]

I have two accounts one with co-operative and one with hsbc. if i filed for bankcruptcy, theyd both be frozen!?

i dont know how it would work with the official reciever etc.

soooo annoyed, i really feel worse than i did when i began!

what companys do good dmp

[nosasani]

I have contacted payplan again to get a referall onto a DMP for the time being and see what i can do in the next 6months.

ill await their reply.

[kallis3]

I'm surprised you still have an account with HSBC - they are well known for closing down accounts of those in an IVA. What usually happens is that the OR will freeze accounts temporarily but if you explain that one is your everyday account (I recommend keeping the Co-op one going) they usually free it quite quickly.

If you wanted to do a DMP with a different company then you could try Vincent Bond - they come recommended on here.

Foggy - I have to jump in here - Payplan are never free as far as IVA's are concerned, they are as commercial as the next company. It's only DMP's which don't attract any fees.

[Broke of London]

Glad you're taking steps to make new arrangements! VB will be great I'm sure, particularly if you get to speak to Andy!!! You could also speak to a couple of the firms recommended on www.iva.com. Let them know your situations and see what they can recommend. x

[MelanieGiles]

I would be interested to see what Nick's views are on this matter - and whether Payplan have canvassed the views of your creditors as to whether this constitutes a failure which would bring down the IVA. I suspect that it is not in itself, however you could not include the post-IVA debt into the IVA, and so the payday loan company could pursue you outside of the IVA and perhaps apply for you to be made bankrupt which would bring the IVA to an end in any case.

Is there anyway a third party could cover the payday loan for you - and therefore allow you to continue with the current IVA so long as this could be brokered with your creditors?

[Nick Payne]

Melanie, I have looked in nosasani's case in detail, the reason why we have had to fail his IVA is due to modifications put forward by the creditors which state that they are not allowed to obtain any credit whilst in the IVA. The modification goes on to explain that if they do take out any amount of credit then they are in breach of the IVA agreement and they will fail it.

[Broke of London]

But isn't there provision to rectify a breech? Or couldn't a variation be put forward to allow the new debt to be repaid?

[Tomoose]

It sounds like a very specific clause was added in for whatever reason, it looks very black and white to me (unfortunately).

[Nick Payne]

If we put a variation forward to the creditors to allow the new debt to be paid the creditors would fail the IVA due to the modification. It is unfortunate.

[nosasani]

I understand Nick, no worries. So Vincent Bond are good right?

I'll try and pursue something with them!

regards

[kallis3]

Vincent Bond do have a good reputation - have a word with them.