Daft Question???? (IVA)

[stevem35]

Hi again everyone.
Put my first post on here last night asking you all for advice about the first steps of applying for IVA. This may seem a stupid question so forgive me but i notice these things can take months to finalise.Can someone tell me what happens in the meantime. Do i have to continue making all the monthly payments on my loans until all is agreed? (just a bit worried about having to keep finding the money for the next however many weeks / months .[:(] Thanks... Steve

[Shining]

I think IP's differ and some would reccomend token payments whilst the IVA is being finalised, me personally I stopped paying creditors as soon as I enquired about my IVA, it helped get my first months payment ready and to get myself straight to go into the IVA. Good luck with your proposal.

[Adam Davies]

Hi Steve
You will need to take advice from your IP and stick to it.Some will advise not paying anything[mine did]whilst others will advise to make token payments.
What you can't do is continue to make minimum payments whilst using more credit,all you are doing is getting deeper and deeper into debt
regards

[Moneystinks]

We haven't paid any creditors since April/May. We have had a few unfortunate expenses that normally we would have had no choice but to put on credit cards. These we paid for in cash....

As Lesley said you can either make token payments or pay nothing. My opinion and this is personal is that if you pay a token payment then it will never be enough....they just want you to pay. I also couldn't work out the right ratio thingie...[:I][:p]

[c.j]

Hi. we were told to stop paying our creditors by the i.p. as soon as we had decided that an iva was right for us. this enabled us to save a bit of money for contingenies. we didnt have many problems with creditors as most of them were understanding when we told them about the iva. all except one gave us 14 days grace from phone calls near the iva which stopped the stress of the whole situation. our iva was approves yesterday and the relief is fantastic knowing we dont have to rob peter to pay paul every month. it will be a struggle but then we spent the money in the 1st place and we are determined to see it through.

[stevem35]

Many thanks to you all for the quick replies...I'll see what my IP says on Tuesday...At least there are a few options open to me....One less worry over the weekend....Thank you all again...Steve

[MelanieGiles]

Most IPs generally advise clients to cease payments to creditors in order that they can verify the balances due, and that you can get yourself ready for a fairly rigid repayment scheme. Other reasons are that no one creditor should be preferred, but to be honest it seems to make little difference whether you stop paying creditors, or make token or pro-rata payments to be frank.