Payplan set me & my wife in IVA even though my debt is manageable

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daimon
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by daimon » Fri Oct 06, 2017 5:38 am
I have recently set up two IVA's with PayPlan; one for myself and one for my wife.

I am not sure as to why they have put me in an IVA as my debt is manageable. I would like to know if i fail the IVA will my wife be able to carry on with hers.

I feel like I will be paying triple the amount of what I have been already.
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kallis3
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by kallis3 » Fri Oct 06, 2017 6:20 am
Your wife will be able to carry on with her own IVA - I am wondering why Payplan suggested you did one if you can manage your debts? If you let it fail it will remain on your credit record for 6 years from the start. Do you have any joint debts?
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daimon
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by daimon » Fri Oct 06, 2017 6:34 am
I raised the issue 3 times during the setup of the iva but was made to believe my partner couldn't do her iva if I didn't do mine.

Meeting was only few days ago if I tell them I don't want mine would it still go on my credit file if it's so early in the process?
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Foggy
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by Foggy » Fri Oct 06, 2017 6:45 am
It could well have been that your wife would not have been able to sustain an IVA on her own, but, without the full facts, it is only guesswork. I am afraid once started it will be on record for the full 6 years and the creditors will also be recording their own defaults.
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Keith White
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by Keith White » Fri Oct 06, 2017 7:42 am
The short answer is yes it may well be possible for your IVA to fail and your wife to continue her IVA - though it would probably need re-presenting to the creditors. However there may be significant reasons that Payplan have guided you into an interlocking IVA. Joint debts could pose an issue. And if your creditors were to get all their debt back through you maintaining contractual payments, but your wife's creditors stood to write debt off - then her creditors may not be overly happy. A lot depends on relative incomes and the details of the debts. What I think is important is that you understand why Payplan have done this. Get them to explain clearly why this was necessary - and if it wasn't necessary you have some grounds for looking again at your options.
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daimon
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by daimon » Fri Oct 06, 2017 8:03 am
We have no joint debts.

The only reason I can see is to include my income but if she had her own iva wouldn't my income have been included anyway as household income.
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Foggy
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by Foggy » Fri Oct 06, 2017 8:09 am
daimon wrote:
We have no joint debts.

The only reason I can see is to include my income but if she had her own iva wouldn't my income have been included anyway as household income.


Usually an IVA is calculated on the debtors income only --- however Payplan do routinely include a partners income as they do work on househgold income. As Keith says .. get them to explain this to you -- it is not right that you should be left in the dark and, frankly, with this level of misunderstanding they should not have continued until you were happy.
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Michael Peoples
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by Michael Peoples » Fri Oct 06, 2017 8:27 am
IVA stands for 'individual' voluntary arrangement so each person should be looked at in their own right. If you could maintain the payments to your creditors then you should not be in an IVA and if your wife could only afford an IVA with your money then she should seriously look at bankruptcy.

https://uk.trustpilot.com/review/www.payplan.com

Some firms will take the family income even when a party is not liable for the debts which is why people should seek more than one opinion before they decide on which firm to use. Have a look at Payplan's TrustPilot reviews as these may have influenced you had you looked before agreeing to go with them.
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kallis3
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by kallis3 » Fri Oct 06, 2017 9:21 am
Payplan used to be good but they have gone downhill fast recently.
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