Unhappy and confused with my iva

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madmaisy2017
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by madmaisy2017 » Tue Sep 04, 2018 5:28 am
I am just entering my 2nd year with payplan and have already gone 1 month in arrears and had a 3 month payment break. I have also just done my annual review which states that after my expenditures I have £122.26 surplus yet they still want £153 a month. I also have been told that £50 that I pay to my daughter each month cannot be included in my expenditures. I am angry over this as I pay the £50 to my daughter each month because they told me a debt in joint names can not be in the iva and that my husband has to pay it, he agreed if I helped out with our daughters uni fees. This was told to my iva and they entered it into the iva, but now they have changed their minds and said no. I still have to pay the £50 plus £153 which is over and above my surplus. They don't reply to my messages for weeks on end.
If I let it fail will they make me bankrupt as I am on the house deeds and we have no mortgage. They misled me from the start telling me the joint debts could go into the arrangement but never told me my husband has to pay them in full outside of my iva. This has brought tremendous strain on my marriage as my husband is having to pay over £100 a month of my debts. He wants to take me off the deeds to protect the house he has worked all his life for.
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Foggy
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by Foggy » Tue Sep 04, 2018 6:44 am
I am afraid that it is correct that, with a joint loan, the solvent party has to continue with the repayments, even though your "half" is covered by the IVA, he will remain responsible for the whole loan. His stance over him paying the loan in return for you paying the £50 a month is unreasonable and he is putting the house at risk if he causes the IVA to fail.

Yes, if the IVA is failed and a creditor decides to make you bankrupt the house will be at risk. Also, if he removes you from the deeds now, the official receiver can overturn that and take the house anyway.

Payplan do have the discretion to reduce payments down to 15% below that originally agreed amount, without going to creditors (assuming you have the usual clauses in this regard). However Payplan do like to march to their own drum ! I would suggest a formal complaint to the IP, which you can escalate to the regulatory body by way of the government gateway at : https://www.gov.uk/complain-about-insol ... actitioner
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Lisa Thomas
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by Lisa Thomas » Tue Sep 04, 2018 8:17 am
madmaisy2017 wrote:
I am just entering my 2nd year with payplan and have already gone 1 month in arrears and had a 3 month payment break. I have also just done my annual review which states that after my expenditures I have £122.26 surplus yet they still want £153 a month.

I presume this is either because there is something wrong with the I&E calculation, something wrong with their calculations, or they are not allowing some of your expenditure as reasonable and have ignored this when looking at the expenditure figures to be deducted from your income.


I also have been told that £50 that I pay to my daughter each month cannot be included in my expenditures. I am angry over this as I pay the £50 to my daughter each month because they told me a debt in joint names can not be in the iva and that my husband has to pay it, he agreed if I helped out with our daughters uni fees.

That is correct - your husband will be responsible for any joint and several debts, possibly for the full amount - the creditor does not have to wait/accept dividends in your IVA as your share - they can pursue your husband for the full sum. Your IP cannot allow you money to preferentially pay off some of your debts from your income - they should be dealt with through the IVA.

This was told to my iva and they entered it into the iva, but now they have changed their minds and said no. I still have to pay the £50 plus £153 which is over and above my surplus. They don't reply to my messages for weeks on end.

I can only suggest you make a formal complaint as regards their lack of response, and if necessary escalate it here but it seems ultimately that they are right in their basis:

https://www.gov.uk/complain-about-insol ... actitioner


If I let it fail will they make me bankrupt as I am on the house deeds and we have no mortgage.

Then take care as you will be at risk of losing the house - it can be repossessed by the Trustee in Bankruptcy to pay towards the costs (which are very high in Bankruptcy), the debts and statutory interest.

They misled me from the start telling me the joint debts could go into the arrangement but never told me my husband has to pay them in full outside of my iva.

Usually the IP's letter to you at the start of your IVA will have stated that any joint debtors should seek their own advice.

This has brought tremendous strain on my marriage as my husband is having to pay over £100 a month of my debts.

I'm afraid the joint debts are his responsibility.

He wants to take me off the deeds to protect the house he has worked all his life for.

I doubt he will be able to due to the Supervisors caution/restriction which is likely registered over the property. If you are made Bankrupt the Trustee will overturn the transfers as an illegal preference.

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mole
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by mole » Wed Sep 05, 2018 5:34 pm
You do not say how much debt you were in or how much your house is worth.

But surely if you had no mortgage, you would have been far better off, releasing some equity to pay of your debt and completely avoided the painful years of an insolvency.

If your debt was huge and over 5 years you will not have paid it all off, they will be coming for a slice of the house anyway.

It could be you have been ill advised in the first place?
madmaisy2017
Posts: 12
by madmaisy2017 » Sat Sep 08, 2018 9:49 am
Firstly thank you for the replies.
My debt is approx £21,000 and our home is worth approx £84,000.
I paid £122.26 this month as that is the surplus amount but received a default as it was not for £153.00 they are asking me to pay. I have approached them about this and they just said we need your council tax payments letter before we can move forward, I sent them a screen shot of my monthly payments for 2018/2019 £111.00 a month but they said no we require the new tax year letter from them with figures. I don't see what difference that is as it still comes down to £111.00 a month.
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Foggy
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by Foggy » Sat Sep 08, 2018 9:55 am
madmaisy2017 wrote:
Firstly thank you for the replies.
My debt is approx £21,000 and our home is worth approx £84,000.
I paid £122.26 this month as that is the surplus amount but received a default as it was not for £153.00 they are asking me to pay. I have approached them about this and they just said we need your council tax payments letter before we can move forward, I sent them a screen shot of my monthly payments for 2018/2019 £111.00 a month but they said no we require the new tax year letter from them with figures. I don't see what difference that is as it still comes down to £111.00 a month.


Bottom line is that you need to comply with any reasonable request from your provider. Unfortunately the word "reasonable" is a cop out giving them basically free rein and, in reality, is deemed to be what the IP considers reasonable and not what you do !
If you continue to pay reduced amounts they will be able to fail your IVA in due course, so do tread carefully.
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