Will our IVA fail or be extended?

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ian422

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Post by ian422 » Tue Jan 15, 2019 3:03 pm
Me and my wife are in the last few months of our IVAs. We just got sent a letter asking for income and expenditure review and have been asked for P60s going back the length of the IVA.
Our last review we completed was Oct 2015, my wife was on maternity and our I&E was very different. My wife had a significant pay rise in Oct 2018, and I earn approx 20% more than I did on the last review.
I spoke to Payplan this morning and gave the lady a correct update of figures and after speaking to her boss has informed us we are in breach of the IVA. I accept through our own ignorance we didn’t give the yearly I&E (I got emails and on their website which I use to pay each month (we are up to date with payments and no arrears) and on the top it always states an annual review is due) so accept the breach is our own fault.
We have no equity in our property (this review was only recently conducted by Payplan) and are up to date with our mortgage etc.
We have 4 payments left until the end of our IVA and are worried it will be terminated and we are left to deal with our creditors ourselves.
Does anybody know what’s likely to happen? It’s obvously a worry, which we could have avoided but honestly we just didn’t appreciate the situation we have created for ourselves.
Will we fail outright or will Payplan rather try to recoup whatever sum they figure we owe by extending the IVA again? Will the creditors decide or will it be up to Payplan?
We feel awful and respectfully ask for any advice. Thank you

Foggy

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Post by Foggy » Tue Jan 15, 2019 3:24 pm
The breach is not entirely your own fault. Payplan should have chased up missing reviews, rather than soldier on to the end. So, although, yes, you are at fault -- the fault isn't entirely yours.

Given that they share some of the blame for this situation and have been shirking their statutory responsibilities, they may be more inclined to assist you in reaching a satisfactory conclusion, rather than failing the arrangement.

Whether or not they go to the creditors will depend on the scale of the potential arrears.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

ian422

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Post by ian422 » Tue Jan 15, 2019 4:08 pm
Foggy wrote:
The breach is not entirely your own fault. Payplan should have chased up missing reviews, rather than soldier on to the end. So, although, yes, you are at fault -- the fault isn't entirely yours.

Given that they share some of the blame for this situation and have been shirking their statutory responsibilities, they may be more inclined to assist you in reaching a satisfactory conclusion, rather than failing the arrangement.

Whether or not they go to the creditors will depend on the scale of the potential arrears.
Thanks for the reply. The scale of the potential arrears I'm unable to calculate because I'm uncertain how to - do they use our p60's over the term plus expenditure from 2015 or now or some how concoct a figure they think was viable?

I was under the impression it's our responsibility to provide a yearly report - I don't mean to sound rude to Payplan but you inferred they share some of the blame so what leverage if any do we possess when the supervisor makes his/her mind up?

We're so worried, and just feel awful. Thanks

Foggy

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Post by Foggy » Tue Jan 15, 2019 5:02 pm
ian422 wrote:
Foggy wrote:
The breach is not entirely your own fault. Payplan should have chased up missing reviews, rather than soldier on to the end. So, although, yes, you are at fault -- the fault isn't entirely yours.

Given that they share some of the blame for this situation and have been shirking their statutory responsibilities, they may be more inclined to assist you in reaching a satisfactory conclusion, rather than failing the arrangement.

Whether or not they go to the creditors will depend on the scale of the potential arrears.
Thanks for the reply. The scale of the potential arrears I'm unable to calculate because I'm uncertain how to - do they use our p60's over the term plus expenditure from 2015 or now or some how concoct a figure they think was viable?

I was under the impression it's our responsibility to provide a yearly report - I don't mean to sound rude to Payplan but you inferred they share some of the blame so what leverage if any do we possess when the supervisor makes his/her mind up?

We're so worried, and just feel awful. Thanks
It is Payplan's responsibility and duty, as supervisors of your arrangement, to carry out an annual review --- your responsibility in this regard is to co-operate with the process and provide documentation and information they request. Not really a leverage, but, you are free to complain to their regulatory body and if they agree they will issue anything from a slap on the wrist to a, sometimes quite substantial, fine.

They will have to revisit each year, armed with the now correct figures and calculate what, if any, your IVA payment should have been increased by. In the case of permanent pay rises this would be 50% of the net rise from the month after the review following the pay rise. In the case of any overtime or bonuses 50% of the amount over your usual agreed take home pay ( which has yet to be established ). You also get to keep for yourself an amount from these payment equal to 10% of the agreed monthly take home pay.

If Payplan had been doing their job -- that which they are being paid for ---- these issues would have been sorted immediately, or, at least, annually.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

ian422

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Posts: 3
Joined: Tue Jan 15, 2019 3:03 pm

Post by ian422 » Tue Jan 15, 2019 5:16 pm
Foggy wrote:
ian422 wrote:
Foggy wrote:
The breach is not entirely your own fault. Payplan should have chased up missing reviews, rather than soldier on to the end. So, although, yes, you are at fault -- the fault isn't entirely yours.

Given that they share some of the blame for this situation and have been shirking their statutory responsibilities, they may be more inclined to assist you in reaching a satisfactory conclusion, rather than failing the arrangement.

Whether or not they go to the creditors will depend on the scale of the potential arrears.
Thanks for the reply. The scale of the potential arrears I'm unable to calculate because I'm uncertain how to - do they use our p60's over the term plus expenditure from 2015 or now or some how concoct a figure they think was viable?

I was under the impression it's our responsibility to provide a yearly report - I don't mean to sound rude to Payplan but you inferred they share some of the blame so what leverage if any do we possess when the supervisor makes his/her mind up?

We're so worried, and just feel awful. Thanks
It is Payplan's responsibility and duty, as supervisors of your arrangement, to carry out an annual review --- your responsibility in this regard is to co-operate with the process and provide documentation and information they request. Not really a leverage, but, you are free to complain to their regulatory body and if they agree they will issue anything from a slap on the wrist to a, sometimes quite substantial, fine.

They will have to revisit each year, armed with the now correct figures and calculate what, if any, your IVA payment should have been increased by. In the case of permanent pay rises this would be 50% of the net rise from the month after the review following the pay rise. In the case of any overtime or bonuses 50% of the amount over your usual agreed take home pay ( which has yet to be established ). You also get to keep for yourself an amount from these payment equal to 10% of the agreed monthly take home pay.

If Payplan had been doing their job -- that which they are being paid for ---- these issues would have been sorted immediately, or, at least, annually.
Thanks for the swift reply. Hopefully it will be in all 3 parties interest for a swift resolution. Thank you also for giving us hope
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