hi we had our iva rejected back along and another ip has kindly agreed to look at our case i am getting really worried about everything i have not been paying anyone cos we don`t have the money. i am assuming the iva route is probably not going to be possible but while we are waiting to find out should i be sorting out a debt management plan because we are receiving letters and phone calls all the time even at work please advise me please.
It would be sensible to commence making some payments to your creditors based upon affordability. It shows creditors that you are serious about continuing to pay them - but that you cannot pay them contractually, hence your offer of a voluntary arrangement.
The IP who is looking at your case will need to see the paperwork used by the previous firm, so in the meantime it would be sensible if you could get all of that back and send it on.
Yes, you need to calculate what you have spare for your creditors, by listing all your normal home expenses and giving details of your income.
Then print this out and send it with a cover letter to each creditor, explaining that you cannot afford to make your monthly payments but are keen to offer what you can.
The way to share out the money is to find out what percentage of your total debt each creditor is. Then you give that creditor the same percentage of your spare money.
So if HSBC are 50% of your debt then they get 50% of your spare money. It is a really good idea to keep creditors aware of your situation whilst you are looking into whether your IVA can be re-presented.
Vincent Bond - Debt Management Plans and IVAs www.vincentbond.com
0845 300 8066
One way is to work out pro-rata payments in accordance with your disposable income, or you could make some token payments to keep the accounts alive.
In my experience whether you make pro-rata or token payments, makes little difference to the overall outcome - but it might make you feel that at least you are trying to co-operate in the meantime.
