Feeling really sad

[annieq]

I signed up with this site last week. in desperation i have started the process of an iva.
i am so embarrassed to be in this situationa dn am desperate for no one to find out.

We are struggling to pay off debts totalling approximately 21k. I have a good job but my husband is on a low part time income as we divide the childcare for our 1 year old between us.

I have just about enough money to pay the rent tomorrow (but need to use the entire overdraft plus £110. I have only managed to pay half of our creditors this months (and that was the minimum payment).

My husband just called to say that we have had a letter about legal action. so we are going to have to go a further £70 overdrawn tomorrow to do a minimum payment.

i feel like i am at breaking point and that it is all out of my control. my IP has only had my paperwork since Wednesday and I am waiting for them to call about the course of action - i feel like i am slipping.

how long does an iva take to set up - i don't think we can take many more weeks, let alone months...

i am so scared about legal action and so angry at myself for the mess we are in.

i don't know what i can do now...

[Viki.W]

Hey annieq, I really feel for you but you are obviously doing the right thing by taking control of you debts through an IVA. I'm not sure who your IP is but I think they will advise you not to pay anything to your creditors so that:- a) you're not favouring one over the other and b) you can start to put a little money aside for your first iVA payment if accepted.

I am not an expert so please wait for one to reply.

Don't feel embarrassed, you have identified you've got a problem and you are dealing with it, so many people don't.

Everyone is here on the forum to support you, we are all in the same boat.

Viki X

[Oliver]

If you are proposing an IVA and struggling to find the money to pay for basic living costs, I am suprised that your IP hasn't reccomended that you stop paying your creditors and I would advise you to contact them and discuss this point.

Time taken to propose an IVA can vary but I would say the industry average is approximately 4-6 weeks from start to acceptance.

[sblack]

Hi,
I know it is a very stressful time for you at the moment but please stay strong and don't give up. You have made the hardest step by facing up and beginning the process. Personally we cancelled all our dd's and did not make any further payments to our creditors, after taking advice in our initial phonecall to our IP.
Try not to worry too much.
Who is your IP?

[elizabethr]

I know what you mean about embarrassed. I owe about 45K but I consider it joint as its mainly been on supporting my family over the years - just been writing about how things have been for me over the years and have had a bad start today but feeling a bit better now as I am beginning to make phone calls to sort out. i have been on this forum for about 2 months now and have found it a godsend for ideas and support. I like you am main earner but also been counsellor and carer when I get in from demanding work - it takes its tole and am very stresses. I am just being polite with the pestering phone calls now knowing that I am going to get things sorted soon. I know it will be a long road to financial independence but not as long as keep going on working more and more hours to make ends meet. I just need to get my husband better now and get my elder daughter to the end of university without giving in to her depression. Being on this forum has helped so much - keep reading and asking questions and you will get through.

[annieq]

my ip told me i should continue to pay creditors.
i hadn't realised how bad this is getting - but if i keep trying to pay as much as possible it is going to leave us with nothing at all to live on!
we barely have any money for the food budget. i am scared of not paying creditors because i don't want to have debt collectors knocking at the door.
i am also terrified of the iva not beign approved - because i don't want to end up homeless.
i do not put anything on credit - as i really want the creditors to see ia m serious - but if this is n't sorted out very soon we will definitely need to buy food on a credit card - which just seems so stupid!

[Oliver]

You must prioritise your living expenses rent, food, etc... over payments to your creditors.

Contact your IP and explain your situation. I don't understand how they can expect you to maintain payments to your creditors if you don't have the money to do so?!!

[sblack]

Annieq,
How can your IP tell you to continue paying creditors if you obviously cannot afford to make the payments and still have money to live ?
I suggest you contact your IP and explain to them what you have told us.
Who are you with ?

[angela18]

from getting in touch with Melanie and her team and sorting figures out etc. we stopped paying our creditors.. if not chances are you would use more credit to live, which would be adding to problem

you will get great advice on here it is the best place for it!!

[Viki.W]

Hey annieq, do not pay for anything on credit, this is really not allowed when you are applying for an IVA, just pay for your essentials, bills, food, rent. You've been badly advised, who are you with? Don't worry though, I'm sure something will be sorted for you. Viki X

[pleasehelpme22]

Hi Annie

I also only recently starting using this site but have to say what a fountain of knowledge and support i have found it to be.

My IP has had my paperwork for a week or so now and i am also still sending in recent statements etc.

As many people have said in previous posts your IP may suggest you dont make any payments to creditors because you shouldnt be seen to favour one creditor over another

in my opinion and i am by no means an expert i should think your living expensives need to come above anything else .

I changed bank accounts and had to withdraw cash from my old overdraft to put into my new account to be able to survive and live for a month.. At first i was frightened not to pay my creditors but i havent paid anone for a few weeks now and as hard as it is as time goes by i feel there could be light at the end of the tunnel if my IVA was to be accepted.. and im sure soon you will be able to say the same

Sorry not much help..
Tanya

[annieq]

should i try and pay the £70 though - as I am really anxious about the letter threatening action from barclaycard?

[rayb]

Do not pay anything further to any of them.

[angela18]

I really don't know annie, i'm sure an expert will give you better advice. we paid nothing to anyone..

good luck x

[rayb]

What you could do is contact Barclaycard and advise them you are in the IVA process and then send the letter on to your IVA company