Disposable Income

[maxdebt]

I am in the process of applying for an IVA and its been 2 months since I paid anything towards my unsecured debts. I worked loads of overtime last month (car tax, exhaust fell off, babysitter costs) and I am now looking at £200 sitting in my account with everything that needs to be paid now paid. The obvious thing to do is remove it and put it aside for contingencies, but I guess I could split it among my creditors. Am I being stupid even considering this? Also will it sweeten my creditors to make these payments? (bearing in mind there will eventually be a creditors meeting!)

[jue]

Hi max debt

have you paid anything to your creditors? any token payments? or have you been told not to pay them anything?

jue.x

[Adam Davies]

Hi
If your proposal is underway and you have been advised to stop paying creditors then I would just keep this money for future contingencies.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[maxdebt]

I was told it was up to me whether I paid them so long as it was distributed evenly per volume to all my creditors. I guess I feel guilty and paying them something might make me feel better

[jue]

Hi

if it would make you feel better,then like you say divide it amongst your creditors,but if you have been adviced not to pay anything i would put this money aside.

jue.x

[Oliver]

I think you can decide to either pay it into your IVA to be distributed fairly amongst creditors or keep it as a contingecy fund.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[sonyse2t5]

A payment of even £1 is worth it as it shows you are trying to pay. Ring up collections dept from your lenders as I did and just give them what you can afford.

[iva experts]

It is completely up to you whether you pay all your creditors token payments or whether you save the money, £200 would make a good start to your contingency fund just in case anything were to suddenly break down etc.

Best Regards. IVA Experts

[iva_squirrel]

Hi maxdebt,

I think you should do what you think is the best for you. Put it aside for contingencies its a good idea put if you feel you should split it among your creditor then just go with it.

Regards,
Michelle P.

[Adam Davies]

Hi
It,s true that token payments can help but often it just leads to further calls expecting further payments.
If your IP has recommended to stop paying and you have done this then stick to this whilst your IVA is prepared.
The £200 will be a great help to you once your IVA is up and running,believe me.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[aguise]

Hi there I would echo what Andy suggests. Keep it for emergencies, you never know when the washing machine will pack up, it will be very useful then and save stress. Token payments may not make much difference and as said they may want them all the time then.

Ang

[Oliver]

If you make a token payment to one creditor then really you should offer the same to all your creditors pro rata to the debt owed. I would be tempted to keep the money for emergencies.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[tiredandy]

You will need every penny you have once the IVA kicks in, I started of with £1000 in my account which didn't last long!!

Andy

[Kiska]

i would most definatly keep it, xmas is fast approaching!!!!!!!!!!!!

[maxdebt]

I kept it. In fact it will go towards my first IVA payment (provided my creditors say YES of course fingers and toes crossed!)