I've sent off my draft IVA proposal and got a provisional date - 10th March - for the creditors meeting.
My creditors are still chasing for payment and have asked if i could make a token payment. I was advised not to pay creditors whilst going through the IVA process.
Do token payments help making the IVA get accepted or doesn't it make any difference at all?
Token payments make no difference as to whether an IVA is accepted or not.
Your creditors won't know about the payment that you have made either as they don't get paid out straight away. I believe payments are made once a year.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If your IVA is not approved - will this payment be refunded to you?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi there & welcome to the forum from me.
I believe token payments have no effect on the outcome of your IVA proposal. There will be an expert along soon to give you a better idea.
Making token payments may keep them of your back for a little bit while your IVA is being processed.
I had no arrears in making payments before my IVA - it was when I started the process of the IVA that I stopped making payments. I got a few letters & a couple of phone calls but I just told them they would be hearing from me soon regarding my financial situation.
There will be others along soon to help you with this & good luck from me with your IVA.
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Kallis - I wondered about that too at the start of my IVA & I did not make my first payment before the meeting in case our IVA was not successful.
Though after our IVA was approved this first payment was spread across the first 3 months payments of our IVA. Making the start of our IVA difficult.
I dont believe having this first payment in hand at the creditors meeting has much effect on the outcome, because your first payment has to be made within a time scale of the IVA been approved?!
Final IVA payment made in April 2013, never ever thought we could do it or get through it but we did! X
An IVA.co.uk Mentor is someone sharing from their experiences of dealing with debt
Some companies do ask for this, but will also refund if the application is not approved.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I thought that most IP's didn't take payment unless there was a successful IVA?
Re token payments - I offered reduced payments to all my creditors, but only actually paid anything if they phoned to chase. In hindsight, it is quite amusing when someone calls you from India demanding £100+ and you tell them all you can afford is £10. It flummoxed most of my creditors, and allowed the build up of a decent contingency.
It made no difference to the approval process, as far as i can tell
kallis3 wrote:
Can I ask who you are doing your Proposal with?
Some companies do ask for this, but will also refund if the application is not approved.
Synergi Partners.
I've seen some negative things said about them - after choosing to go-ahead with them, but so far I've not had any problems with them. I've found them very friendly and helpful.
We do have a lot of negative comments about them, but we have had some positive ones as well.
Most companies will be ok whilst your are setting up, as they obviously want your business. Hopefully you will be approved and they will be ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Don't worry about token payments and ignore letters/phonecalls and wait for the outcome of your meeting in March. Good luck.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Token payments do not make a jot of difference to the outcome of an IVA proposal, and if you have agreed that the IP may retain the funds that you have already paid over you are stuck with that in the event of a rejection, but just to be clear to other posters you do not have to do this. In my opinion, monies paid in advance should be fully refundable in the event that creditors do not accept the IVA.
One thing I would say is make sure that if your meeting is delayed that you don't make any more non refundable payments. There have been numerous posts on here from people who have made payments for months before their creditors' meeting, only to lose the money.
