Your views and questions.

Moderators: TalbotWoods, JaneClack

By nomlas
#272203 Hello pink princess and welcome. You are right IMO to go with CCCS (payplan are also excellent). I would also write to each creditor and explain your circumstances, as you have on here, emphasising the fact that your property is in neg equity and 25% government owned.

I would think there is still a posibility that at least one of your creditors will go for a charging order as they are sizable debts however it would not mean that you would lose your home, it is a charge on your property that puts the creditor in a secured position and when you sell the creditor is in line for payment. They will not be allowed to force you to sell. This might not happen and they might well accept your plan, lets hope so.

I would not offer more than you can comfortably afford, it is not worth living in poverty for the next fifteen or so years and no doubt things will crop up when you need money quickly. If you pay every spare pound to the creditors you will allways be skint. Just my opinion and good luck. -- nomlas
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By JaneClack
#272233 In a debt management plan payments can go up and down - with CCCS and Payplan they should reflect your current surplus so you can increase the payments. This is the beauty of a debt management plan - the downside of course, is that it is not legally binding.

However, this might be suitable for an Individual Voluntary Arrangement using the simple IVA protocol - this is the one where if you cannot release equity even if there is some - you would never be forced to sell your home.

Have a word with CCCS - as they do do IVAs - and ask if this is possible and if not, to explain why it is not worth putting it forward. You could also seek a second opinion from Payplan but if CCCS do not think it is viable they would be able to explain their reasons.
By spaniel
#272243 Hi Pink Princess

Back in February of this year I contacted Payplan for help and they were really great (still are!). Our debts were twice the amount of yours and we are on a DMP paying £200 per month. I think I will be 99 years old when our debts are paid - how scary is that. My husband's contract wasn't renewed last October and finding work in your mid 50s is not easy. He has got another job but the money is awful. When he can get a better paying job then we will go on an IVA. Surprisingly all of our creditors have been very good. I initially wrote to them all explaining our circumstances and that we were going on a DMP via Payplan. I have not received one horrible telephone call (long may that last). We receive the usual computer generated letters and anything I am not too sure about I contact Payplan who are very supportive and reply very quickly to my emails. We have a huge mortgage and our house is currently in negative equity. I have been dreading charging orders but I think they are only issued if you default on your CCJs - can anyone confirm is that right? I haven't been threatened with court action so far.

Take care

Spaniel
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By JaneClack
#272253 Yes, at present they can only do this as an enforcement action if one defaults on a county court judgment!
By Butts
#272363 Put your hands in Payplan and you will have few problems.

I owe far more than you and it will take hundreds of years to repay.

All you will pay is what you can afford and no one can ask any more of you than that. :mrgreen:

Whoops sorry just noticed you have opted for CCCS - they are also free and fine but in MY opinion offer a less comprehensive service than Payplan.
By spaniel
#272433 Hi Pink Princess

The good news is that you have a choice. As I mentioned in a previous post I am on a DMP and I will be dead before it finishes. When I feel confident I can afford the monthly payment I will go on an IVA. At present I can't risk it because (as I understand it) if you can't keep to the agreed monthly amount on an IVA then your creditors can make you bankrupt. I don't think you can revert back to a DMP. I have also read that if you own your home then towards the end of your IVA it will be valued and if there is a decent amount of equity then you may have to release it by taking out a loan (is this correct? - who would give us a loan?). I also read that if you can't release equity then you may have to pay for another 12 months.

The experts on this Forum will be able to give you accurate information but the above is how I understand it.

Question I have: I understand that the proposal for an IVA is put to your creditors for approval. If it is rejected can you remain on a DMP?

Good luck on whatever you decide.

Spaniel
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By JaneClack
#272453 When someone is in a debt management plan with Payplan, or with anyone else for that matter, they would remain on the debt management plan until and if the IVA was accepted - if it were not then they would remain on the DMP.

The vast majority of IVAs put forward by the Insolvency Practitioners in the Payplan Partnership are what are called simple protocol compliant IVAs. In these no-one would ever be forced to sell their property if they were unable to remortgage to release equity, if the remortgage were to continue past retirement age or if the cost would be prohibitive.

If a client is put forward for an IVA and the proposals are rejected, then the client can go onto a debt management plan - so really there is nothing to lose by trying as there are no upfront fees. CCCS also propose IVAs with no upfront fees.
Bypink princess
#272463 Thanjs if I webt on iva and missed payment can they make you bankrupt? Plus if I was made redundant a real possibility would they want that payment or could I use it to make the payments?



quote="Sarah"]When someone is in a debt management plan with Payplan, or with anyone else for that matter, they would remain on the debt management plan until and if the IVA was accepted - if it were not then they would remain on the DMP.

The vast majority of IVAs put forward by the Insolvency Practitioners in the Payplan Partnership are what are called simple protocol compliant IVAs. In these no-one would ever be forced to sell their property if they were unable to remortgage to release equity, if the remortgage were to continue past retirement age or if the cost would be prohibitive.

If a client is put forward for an IVA and the proposals are rejected, then the client can go onto a debt management plan - so really there is nothing to lose by trying as there are no upfront fees. CCCS also propose IVAs with no upfront fees.[/quote]
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By JaneClack
#272483 There are some failsafes built into IVAs but if you feel there is a real likelihood of not being able to make payments on a regular basis then it is not the option to take.

Most insolvency practitioners do not make people bankrupt if their IVAs fail unless of course it is written into the proposals eg often the Inland Revenue will ask for someone to be made bankrupt if they are a creditor and it fails.

Ask your adviser at Payplan how the IVA works in practice to be 100% sure - although they will tell you and certainly if you do opt for the IVA option this will be explained again during the set-up period and also you will discuss bankruptcy at length.

If you were made bankrupt then they would expect the money received in lieu of salary to be paid into the arrangement but also could look at a lump sum to clear everything. These are really questions you should ask of your case officer as this is an open discussion and cannot cover all eventualities!
Bypink princess
#272553
Sarah wrote:There are some failsafes built into IVAs but if you feel there is a real likelihood of not being able to make payments on a regular basis then it is not the option to take.

Most insolvency practitioners do not make people bankrupt if their IVAs fail unless of course it is written into the proposals eg often the Inland Revenue will ask for someone to be made bankrupt if they are a creditor and it fails.

Ask your adviser at Payplan how the IVA works in practice to be 100% sure - although they will tell you and certainly if you do opt for the IVA option this will be explained again during the set-up period and also you will discuss bankruptcy at length.

If you were made bankrupt then they would expect the money received in lieu of salary to be paid into the arrangement but also could look at a lump sum to clear everything. These are really questions you should ask of your case officer as this is an open discussion and cannot cover all eventualities!
Last edited by pink princess on Fri Dec 06, 2013 9:43 pm, edited 2 times in total.
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By JaneClack
#272563 Now I am starting to wonder....

If you go into an IVA and then get married then your circumstances will change and your surplus would increase as you would not be paying all the bills. His "mansion" is not yours and therefore totally outside the equation and would not be considered.

His credit rating would only be impacted on if he took out joint debt with you - which you would obviously avoid if you did not want him to find out!! However, your IVA would be visible on the insolvency register whilst it was in place and both are going to affect your credit rating.

All these questions and more your case officer can answer. I am intrigued as to why your surplus is so much smaller with Payplan than CCCS - they should both be what your affordable surplus is. I am also interested to find out why CCCS have not thought it suitable to offer an IVA?