been told not to pay the creditors

[63k]

Ok, thinking about the IVA, before I have even completed it/sent off the fully filled out form, I have been told not to pay the creditors this months payments, so the process can go through. It seems mad, I always pay them and only missed one or two payments in the last few years by accident but now feel this would be going against what I intend to do. Should I send a letter to each creditor?

[OPTIMIST12]

Hi 63k -

Yes - it is a strange feeling to stop payments.

Dont worry - you will soon start getting phone calls and letters asking you what is happening.

What I did - as soon as I seriously started down the IVA road - was to cut up all my cards and return them with an explanatory letter to each creditor. I made one last "pro-rata" payment to each creditor based on my actual available funds. If some of your accounts are "non-card" accounts I would write to them anyway to keep them informed. After that you just have to play things by ear while your proposal is being prepared and the Creditors Meeting arranged.

I know that some people continue paying token payments rather than nothing but this seems to vary.

The important thing is to STOP using or drawing ANY further credit once you have embarked on your IVA course.

My IVA took less than 2 months from initial contact to Creditors Meeting - hopefully yours will be completed in a similar timescale.

Good Luck!!!

[aguise]

Hi there, it is the norm to be told to stop paying creditors if you are applying for an iva. You cannot be seen to favour one over another so it is better to stop as also final balances will change as well. It is scary but most of us have been through it. You willl get calls but just be polite and refer them to your company. Some do send a letter to inform them of the impending iva but I would check anything like this with your company. If you are not sure about going on with the iva again speak to your company and then at least keep the money aside should you change your mind.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[63k]

Thanks for that, I was going to send a letter like this to all creditors

Dear Sir/Madam,


I am writing to advise you of my current position. We are authorising an IVA agreement with Baines and Earnst Ltd.
I have been informed to stop all payments to my current creditors whilst the IVA is being handled. However, in the mean time we wish to make a token payment of £20 to all our creditors.
Any queries please call

0161 216 2491

Baines & Ernst LTD
18-22 Lloyds House
Lloyds Street
Manchester
M2 5BE

My ref number #####

Yours sincerely
ladeda


If anyone can make a better template for me would appreciate!
Lucy

[63k]

Actually after advice may not pay the token payment then![:p]

[scaredkez]

some companies say make token payments other say not to, its down to you really but even if you do you will find the creditors still hound you for more with all different scare tactics so be prepared for these, i would just write your letter leave out the token payment bit and say all further correspondence to be done through my IP.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[OPTIMIST12]

63k (aka ladeda!!!!) -

Just a suggestion - but I would give Baines and Ernst a ring to check what their view is on token payments. As they will be preparing your individual proposal and dealing with your case it may be best to check what their view is on these and also they will then be fully up to date on what action you have taken.

[aguise]

Hi lucy

if you make token payments to your creditors make them a percentage of what you owe say 10% of the monthly payment, that way they are all being treated the same.

ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[emma_t]

Hi
There are some template letters on the national debtline website - myabe check these out and see if suitable for your situation

[bagpuss]

I felt the same as you...felt really strange to just stop paying them...but then my ip said..."you aint paying them now...they are all paying each other"...wasnt she right..

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[BlueShoes]

We stopped paying, having never previously missed a payment, and it felt very strange, as well as scary. Melanie organised our IVA very quickly so we didn't get too much hassle with the exception of Next Catalogue who were a nightmare (only stopped ringing last week, and we are three months into IVA)
We didn't make any token payments either, although a couple of creditors asked us to. We explained we had been advised not to etc and to contact our IP if they had any further queries.
Good luck
Blue

[bagpuss]

Next was one of our debts....and the funny thing was i used to work for them....a few of the people who rang me i actually knew....that was awkward. The amount of times i was asked..."whats an IVA" was amazing.



Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[63k]

Hi all Thanks for that.

I think I will stick to not paying, just worried as to what will happen to us if it doesnt go through and end up with bigger problems then!

[scaredkez]

well whats your "b" plan if it doesn't go through, dmp or BR it doesn't matter, you are trying to get this mess sorted and hopefully your iva will go through worry about that when it happens but be sure to know what you are going to do if it doesn't, there is always a way.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[63k]

The company have said if it doesnt go through they can get me on a DMP with them, but I havent looked into this as thoroughly. Also what happens if we earn overtime/bonuses on IVA anyone had exp with that?