If ones in an IVA (3 years in) and has currently encountered problems with payday loans totalling to £1900. (Stupid I know) but sometimes things happen that are just unexpected.
Can you help or guide me on what I am to do. Am i able to have a month or two payment holiday for me to try and pay off the loans, will the debt be included in my IVA or will I automatically become bankrupt.
Why have you needed to take out these loans? Have you been struggling? If so then you should have approached your IP to see if your payments could have been lowered.
You do need to speak to your IP asap to see if this can be sorted out.
Hi John and welcome, I can't understand how you have managed to rack up that amount of debt on payday loans when you are in an IVA? is there something amiss with your budget? if you were having difficulties your first port of call should have been to contact your IP to look at a solution to get you through a temporary crisis.
I am not sure on how this will be dealt with to be honest as effectively it does mean you have breached your IVA and as it is a post IVA debt your IP does not have to include it into the IVA.
You do need to speak with your IVA urgently to find out what they suggest, they will want to discuss your I&E in detail to establish what has gone wrong and what this debt was spent on and take their advice on how they want to deal with it
Thanx for the replies. I know it's bad, but the loans as other have said you start wit one, you then need another the pay that and so on. I was pressured by my ex to do a lot more with my kids. She hasn't been very understanding of my situation. I took the first loan to take the kids away for a caravan holiday and the others followed suit.
I'm really worried about going bankrupt. The budgets I have are fine it's just this stumbling block that I've come accross. Any other dad in my situation would do the same.
John.....pick the phone up to your IP and seek there advice....unfortunately in an IVA taking out forms of credit is not acceptable...but you have so now we have to help you find a way around it all......we all have difficulties in our IVA and for some the pressures from others is sometimes too much and we give in....let us know how you get on with your IP
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
John,contact your IP to discuss the situation,simply explain what you have done and work with them on a solution. You arent the 1st person to get caught out by a payday loan(s),and you wont be the last. How many months payment breaks would you need to take to get it sorted? Any months missed would likely be tagged onto the end of your iVA.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
Agreed with Paul. It is easily done and people on here shouldnt judge. If you can get in debt without the constraints of being in an IVA, it is understandable many struggle when in one.
Although you shouldnt have do this, I am sure it can be remedied. It is in no ones interest to fail it now. You lose out, the IP will lose and out and so with the creditors. If you manage the PDLs with them directly and can work out a repayment scheme I would go for that. There is new PDL guidelines that mean they should freeze your interest if you locked in a cycle of non payment. They may not like it put press them.
If this sorts you out then great if not then you will have to come clean to your IP and hopefully they will be sympathetic.
Payday lenders ordered to freeze interest rates for struggling borrowers
Charter drawn up by trade bodies will also force companies to conduct credit vetting and affordability assessments
Includes the following statement
• Freeze interest and charges if a customer is in financial difficulty and making payments under a repayment plan, or after a maximum of 60 days of non-payment '
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Good luck John, I can appreciate why you went the route you did, but if it is at all possible your IP will want to help you to get out of this predicament.
You may be able to take a payment break to repay the payday loans, or to add them and extend the life of the IVA.
Please don't struggle to try and make this go away, they are loan sharks under a fluffy name and although you will probably get a slap on the wrist I am sure you will find a solution to this problem.
As others have said, the 1st port of call should be your IP, we very often have posters on here scared to contact them but believe me they've probably had worse problems to sort out.
I believe all they do is check that you are in work and have your bank account details - once you get paid then the money should be paid back straight away.
I am starting to think it might be best to consider bankruptcy. At the end of the day I have tried my best. IVA is the same status as bankruptcy anyway.
Does anyone know the procedure from IVA to bankruptcy?
I haven't managed to speak to my IP yet because of the weekend.
I would see if you can sort this without going bankrupt as you are so far in.
If you go bankrupt then you would have to let your IVA fail by missing three payments and you can save up the bankruptcy fee. You would be usually be bankrupt for a year before discharge but it would remain on your record for a further six years from the date you declared and an IVA is not the same status.
You would probably find that you would be making payments across to bankruptcy for three years which would equate to the payments you make at the moment so you could end up being no better off.
