I was having difficulty with my debts which are around £12K.

I am on benefit, and so I foned up Debt Free Direct to see what they could do.

I am very upset that all they could offer me was an IVA - 7 years paying £130 a month.

Naturally I had to sign up because I was getting constant harassment of one of my creditors Halifax who kept foning me up every day demanding money I didn't have.

I am now wondering if the IVA really was the right solution; they didnt offer me a Debt Relief Order which is what I would have prefered.

Is there anything I can do besides letting the IVA fail (which I dontwant to do because Halifax will harass me again).

Very distressed by the whole thing; Debt Free Direct knew I was on benefits; I really cant see myself paying £130 a month for 7 years, especially as I could loose my benefits at any time anyway, they failed to take this into account.

Because of being on an IVA no company would give me advice as I have rung around several this morning; they said the IVA would have to fail before anyone could help me!!

NOT happy can anyone please help

what do you expect from fee paying companies

not in it for your benefit.

get an SAr off to DFD now

please list your debts

and STOP using the phone too

you are under NO legal obl to

discuss your debts with anyone on the phone!

you do NOT need any company to sort you debts

do it yourself for free!

dx

IVA is only really suitable to someone in employment, also using a fee charging company means you are enriching a third party when there is no need to.

I've been in an IVA since June 2012, and I am not happy with it.

I am starting to regret the IVA - I am starting to struggle with the repayments as I have had an increase in my vet bills as my cat needs regular vet treatment for a new condition.

I get cont based esa and dla, the IVA was set for 72 months (7 years) which I think is far too long considering a standard IVA is for 60 months (5 years).

My payments are £130 a month but with increased vet bills I really cant see how I can afford to keep paying.

I have complained about this to the Financial Ombudsman Service, and am due to get a final response from Debt Free Direct within the next 28 days.

I have asked the FOS to ask DFD why the IVA was set for 72 months (they didnt say why) and for my payments to be reduced due to increase in outgoings which is beyond my control.

If DFD refuse to cooperate with my complaint what can the FOS then do?

I think to force me to pay for an IVA for longer then is normal is not acceptable.

Would I be better off letting the IVA fail, and if so, how do I go around obtaining a Debt Relief Order?

Benefits is my only income, and I do live with a partner. I have no financial interest in the property as I am not on the deeds and not on the mortgage.

Any help thank you.

how do I go around obtaining a Debt Relief Order?

https://www.gov.uk/options-for-paying-off-your-debts/debt-relief-orders

As for your best course of action it may be best to discuss with an advisor from somewhere like http://www.stepchange.org/ which was formerly CCCS a debt charity.

What was the total amount of debt taken into the IVA - if under £15,000 I would have thought a DRO would have been more suitable in the first instance ?

Do you own your own property, as that I think, will be a bar to you having a DRO.

Thanks for the replies.

No I dont own any property and dont have savings or assets.

I have contacted CCCS; I think they were useless because they got my benefit income wrong!!I get £107 per week dla; they said it was £428 a month!! No way do I get that much!!

Then they said I was getting £440 a month ESA; again I disagreed with this amount!! I actually received £110 per week ESA.

My total debts are approx. £10K.

Have I missed something? Based on a 4wk month, £107 a week IS £428 monthly and £110 a week was IS £440 monthly.

Why did you disagree with the figures?

Sorry for giving out wrong figures.

I just read the figures correctly given out by CCCS

I get £107 week DLA - in a 4 week month it adds up to £428. CCCS claim this figure is higher at £464!! Their calculation is not right!!

I also get ESA at £110 per week - in a 4 week month it add up to £440. CCCS claim this figure is also higher at £477!!

I'd love to know how CCCS claim I am getting more benefit as their caluculations are totally incorrect.

Also as I have a cat who is a diabetic, there is no scope on the CCCS forms about vet fees. This costs me £100 a month extra for his treatment.

They haven't messed up the figures hun. They've worked out how much you receive per calendar month. For example, £110 per week multiplied by 52 weeks in a year and then divided by 12mths equals £476.66.

They've done the same with both esa & dla. Their figures are right.

Well I dont agree with their figures. I certainly DONT get £476 a month ESA, otherwise I'd have more available money to live on and I dont!!

I think what is confusing is that you are working out your income as per 4 weeks = £110 x 4 = £440 but when they work it out it is calendar monthly which means they have to account for the odd days. So the easiest way is to multiply the £110 by 52 weeks which = £5720 per year then they divide it into 12 calendar months which £476.66.

They do it this way otherwise they would have to make 13 lunar payments per year to your creditors instead of 12 calender payments.

Four weeks is not a calender month it is 28 days.

Either way I still dont agree with the figure.

If I was to let the IVA fail because I now have increased outgoings, what will happen and how do I apply for a debt relief order?

Thanks xx

If the IVA fails your creditors will resume normal debt collection activities.

You will be able to apply for a DRO though the Citizens Advice centre or http://www.nationaldebtline.co.uk/

Either way I still dont agree with the figure.

 

If I was to let the IVA fail because I now have increased outgoings, what will happen and how do I apply for a debt relief order?

 

Thanks xx

If it was me, I would let it fail. Quality of life is more important..

Thanks cerberusalert .

I will go into CAB at some point this week to discuss a DRO.

This would free up £130 a month, as I have increased vet fees which debt free direct wont take into account.

pleae list your debts.

have you checked EVERYONE of them by CCA request?

dx

Just had a lengthy chat with National Debt Line who were very helpful regarding my IVA.

They went though my income and expenditure; basically I have nothing to live on a month after paying all bills.

They said it was best to allow the IVA to fail as I can prove I have no money at all to pay off my debts.

I do match the criteria for a Debt Relief Order.

The only downside is this; I currently live with a partner (he does not know my financial situation as he would kick me out if he did), he owns the property in his sole name.

I could be deemed as having a financial interest in the property , how do I go around this?

I have not contributed the the upkeep of the property, and I have not paid towards the mortgage.

I do pay for the food bills,gas, water, tv licence, but he pays everything else.

I would pay for these bills if I wa living on my own so I say no I have no interest in the property.

National Debt Line said I would have to do a joint income and expenditure, but he pays a lot more then me a month!!

Any suggestions?

Have you thought of contacting the Blue Cross, RSPCA or PDSA for your pet treatments ? These are often free or minimal donations.

please list your debts

dx

I cannot get any help with RSCPA, Blue Cross or PDSA. They only offer help with vet treatment if you receive housing benefit, and I do not.

I have around £10K of debts existing of credit cards, and loans.

Creditors are Halifax, Virgin Money and Littlewoods.

The only downside is this; I currently live with a partner (he does not know my financial situation as he would kick me out if he did), he owns the property in his sole name.

 

I could be deemed as having a financial interest in the property , how do I go around this?

Thanks very much, will fone National Debt Line back and seek a DRO.

I will need to let the IVA fail for that the downside; they did say I can write to the creditors to ask for no pressure whilst the DRO is being applied for.

i'd get reclaiming PENALTY fees on the cards and catalogue debts first.

dx

Hi in relation to your complaint to FOS, I think you may well be advised by them that they cannot deal with your complaint. The FOS official line is that they have no juristiction over Insolvency Practioners who administer IVA arrangements. As the firm in question also has a consumer credit licence from the OFT for its DMP operations etc it is only the pre IVA advice (covered by the CCL) from that FOS may be able to consider. I asume you went through the firms internal complaints procedure first (a requirment of FOS). What did the firm say about your complaint?