www.iva.co.uk

Hi
My husband and I have been in IVAs since April this year. My husband currently pays maintenance to his ex wife via the CSA. When we started the IVA I sent our IVA company, Payplan, the payment shedule of his maintenance payments that the CSA had sent us the year before, so 2010. He pays through deductions of earnings. Our monthly payment to payplan was built around these payments as priority outgoings. We found out last week from the CSA, that my husbands employer had not paid a months payment at the start of the new payment plan in 2010. Therefore he is in arrears with them. He has agreed to pay them £100 per month for the next 3 months, then £72 the month after to clear this. I called payplan today, hoping they could reduce our payments over the next few months to help meet our increased CSA payments. Apparently not! If they reduce our payments til Dec when the arrears will be met with the CSA, we would then have to make up all the shortfall by March 2012, the end of our first IVA year, and not after. Is this correct? The adviser on the phone, not our case officer as she is away, was really unsympathetic and matter of fact with the figures. She didn't seem to realise that £100 per month is huge for us to find. If nothing can be done it will have to come out of our houskeeping money which is only £320 per month, and we are a family of 4, so it is tight anyway. Not sure what to do...

Hi. Hopefully Nick, from Payplan, will pick up on this. I am sure that your IP can find a workable solution, either extending the IVA to make up the shortfall caused by diverting funds to the CSA repayment, or by taking the shortfall over a longer term. The IVA is a 5 or 6 year term, not 5 or 6 concurrent 1 year terms.

How unhelpful - I am sure that Nick will be less than impressed as well!

Why not default on your next IVA payment and pay the full amount to the CSA - the IVA will not fail for one or two missed payments - but do check the terms to ensure that this is correct. If they refuse to let you reduce your payments to accomodate the CSA arrears - which I note were incurred through no fault of your own - they should be prepared to vary the arrangement at least.

As said already am sure there will be a solution in your favour - you have done the right thing and asked - let us know what the outcome is please

Hi Hilary, I would like to look into this matter for you, would it be possible for you to send me your client ID in an email?

Thanks for your replies everyone. Nick, I have emailed you with me ID, let me know if you need any other information.
Bit worried, as CSA have already taken their extra £100 this month. Our IVA payments are due to go out on the 28th. Am a bit to scared to default on that payment!

Melanie wouldn't advise you to do something which will be detrimental but get confirmation from Nick as they are looking after your IVA as not all IPs have the same approach. I am sure he will find the best solution possible to cause you the least distress.

Let us know how you get on.

Regards,

Well, just thought i would update you all. Payplan have refused to help us in any way. Despite several calls to them, all the explanation they will give us as to why they are "unable" to reduce our payments temporarily over the next few months, is that we have signed a legally binding contract, and all money needs to be made up by the end of whichever IVA year we are in. If not it will be deemed as failing. Feel really worried, our IVA payment should go out of our account tomorrow but won't as there are not enough funds in there to cover it. Also, Nick I have not heard back from you after I emailed you.

This is an incredibley unhelpful and, frankly, obstinate response from Payplan ! I doubt it's in the "legally binding" agreement that each year has to balance and imagine this is for Payplan's benefit, not yours!

Let's hope Nick can manage to get to the bottom of this.

Hi, I am aware of this post and I am in the process of trying to sort this out with your IP.

Thank you Nick. I hope to hear from you soon.