www.iva.co.uk

My husband does a voluntary arrangement with his creditors (been in operation for some time. He has four creditors and the arrangement was originally sorted out by the CAB some time ago, the CAB here closed down so he carried out dealing with them himself. Not many problems with this except for HFC (I believe there are part of HSBC). From time to time he receives phone calls from them saying he is behind with payments, he reminds them that he is not behind as during a review due to going back to work (he was actually better off financially not working!!!)his income had gone down so the amount to pro-rata between all creditors went down. We were quite meticulous in working things out - Capital One had sent us the info on how to work things out so all creditors got the same. Some of the calls from HFC end up ok and they just so - well thats ok then - some are snotty and get quite nasty.

To summarise - the latest payments to HFC had gone down to £59 and he had been paying this since last October/Nov (can't remember) - got a phone call last week (snotty one) to say he was behind because he sould be paying £106 - original payment years ago. He again went through the scenario and reminded them he has been paying the £59 for some time and they have only just decided to ring and complain. They said he would have to do another review. The other issue is that HFC ask for reviews at different times to Capital One. We have done a reviewed income and exp for him in line with the Capital One review (their amount is £11)and this showed payment should to HFC should go down to £35. We did this reviewed income and exp some weeks ago at the request of Capital One but because HFC review was not due he carried one paying £59.

Question - payments to all his creditors due this weekend. Bearing in mind we have sent off the reviewed inc and exp showing HFC should only get £35 (to be in line with other creditors %) should we pay the £35 or still pay the £59 until they write back although this means they are getting a bigger share then the others.

Are you sure he is in an IVA Elizabeth, as the CAB do not provide these and I cannot see anyone with your surname registered on the insolvency register?

Is he perhaps in an informal DMP?

Hi Elizabeth,

This is an informal arrangement so there could be different percentage payments between the creditors - However the pro-rota basis that you are proposing is fairer and justified.

I suppose the real question is can you afford the higher payment this month - if not then you make the lower payment. If you can do you feel it is fair and do you want to?

HFC will undoubtly contact you if you pay a reduced amount but may well take time to review your updated I&E -this could prompt agreement but no doubt you will get an interrogation

All the very best alan

Melanie - sorry I didn't mean he is in an IVA - thats what we are considering now as part of our way forward - either just me or joint. His is an informal debt arrangement with interest frozen.

cant really afford the £59. I was also thinking that, seeing as we have done the review as suggested, and the review shows a lower payment, then if we continue to pay £59 we are actually saying we can afford the £59 anyway so keep paying that - do you understand my logic.

Hi Elizabeth,

Understand your logica and you have answered the question - the reduced amount is what you can afford and that is what is being sent. Hopefully HFC will have good sense and agree, usually when they have figures before them they are quite sensible.

All the best alan


www.debtdr.co.uk

Thanks for the replies. We are just going through the process of deciding which way to go and it may be that we explore a joint IVA in the end