legal to change to an IVA ?

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adaml007
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by adaml007 » Fri Jan 22, 2010 3:18 pm
Hi, i am in a DMP arranged by payplan, i have calculated that i will be dept free in 20 years as interest is being charged.
My income has fallen by 10% and i am wondering if it is legal to change to an IVA

 

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The Major
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by The Major » Fri Jan 22, 2010 3:28 pm
Good old Payplan 20 years, they really know how to help, you can come out of this anytime you like, it called an informal plan.

 

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animaleyes76
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by animaleyes76 » Fri Jan 22, 2010 3:38 pm
20 years .. wow..

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 3:38 pm
Hi Adaml007. 20 years to be debt free. As the Major says 'Good old Payplan'.

Speak to an IP firm for some free advice as an IVA may be your best option and you could be clear in five years. Alternatively, you may be best going bankrupt and can restart after a maximum of three years. 20 years is obscene!

 

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adaml007
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by adaml007 » Fri Jan 22, 2010 3:43 pm
payplan was recomended to me by a crdeit card company so i thought that was for best, i pay 374pm towards my dept of 15000.
not sure what to do, please advise

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 3:51 pm
Payplan are funded by the banks and if your interest is not stopped you will pay forever. You should contact an insolvency practitioners for some free advice. It may be that a debt management plan[DMP] is your best option but not if interest and charges are whacked on. It is also possible that an IVA is an option if not all your debts are listed or you are self employed and have debts to HMRC which are not part of your DMP. It may be that bankruptcy is the best option of all so contact any of the IP firms on this forum and they will give free impartial advice.

If it is the case that a DMP is your best option, refuse to pay anything unless interest is stopped. The debt will then be transferred to a debt collector or sold on and these people will happily take the repayment interest free. Good luck.

 

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Needout
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by Needout » Fri Jan 22, 2010 3:54 pm
I must be lost here somehow. You say you are paying £374 p/m on a £15k debt. I know that interest cab be bad but this would be criminal. If the interest was capped then you should be paying this debt off in 41 months. If the figures are correct then you are basically paying off on average £62.50 per month. Do an IVA as you could clear your debts in full if you have that type of DI and the IVA Fees and probably have it concluded in less than the 5 years. If they have advised you to go down that avenue then it is criminal.

 

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Michael Peoples
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by Michael Peoples » Fri Jan 22, 2010 4:02 pm
You are not lost Needout. I have seen DMPs where the clients are paying a fraction of what is being added on in interest, late payment and over limit charges and even payment protection insurance. Feecharging DMP companies in my opinion do a much better job at getting interest and charges stopped than any of the bank funded 'charities'.

 

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Needout
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by Needout » Fri Jan 22, 2010 4:11 pm
Surley this has got to be "theft". No one could ever get out of debt if they had large debts. The courts should control this as generally a court would surely cap the interest that could be charged. People are being robbed for making a mistake. we have all made them.

 

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The Major
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by The Major » Fri Jan 22, 2010 7:13 pm
Hi Needout yours is not that bad a friend of mine a midwife with large debts £65000 went to Payplan last June for help they set her up on a DMP again not getting all interest cancelled it would have taken 46 years. She would have been 97 years of age when it finished, after paying three months Nat West took her to court for an increase in payments which was thrown out by the district Judge, following this with the fear of more court appearances she went bankrupt in December 2009 so our virtually state owned bank have now lost out big time

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 7:22 pm
Strange - we went to Payplan as we were already in a DMP with another company and wanted to change to them to continue with the same. They were the ones who sorted us out with an IVA.

 

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MelanieGiles
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by MelanieGiles » Fri Jan 22, 2010 7:49 pm
In your case a commercial DMP company would have fought for the interest to be stopped, and therefore 20 years would not have been relevant, neither would an IVA have been appropriate.

I would love Martin Lewis and all of the other people who profess to the benefits of using the "free" or "charity" sector to comment on this thread.

 

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kallis3
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by kallis3 » Fri Jan 22, 2010 8:01 pm
We were with a commercial company for our DMP and all interest was stopped. My payments in an IVA are £375 (with Payplan) and that's on debts of £80k plus.

I would certainly give one or two companies a ring though.

 

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Adam Davies
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by Adam Davies » Fri Jan 22, 2010 8:09 pm
Hi
Good advice from Michael in that if you let your debt go to a debt collection agency then in my experience interest will stop and they are much more agreeable to regular monthly payments.
Regards

 

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MelanieGiles
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by MelanieGiles » Fri Jan 22, 2010 8:13 pm
What an absolutely ridiculous world we live in sometimes!
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