Has anyone else had this happen?

[carlmcmullen]

I understand your point Andy, but in my experience it is much harder to get an IVA to succeed if you tell a client to stop paying creditors completely.

I would have to disagree with that comment, creditors generally use creditor reps to vote on proposals and they look at the circumstances for proposing an IVA, the dividend, length of time they have had the debt. Payment history is not normally a factor in the decsion making of yes or no vote !

[Shining]

I personally wasn't in arrears for anything but....only because I could access cash from credit cards and borrow from one to another to make things balance, paying the minimum. I do realise that everyone is different and it is an individual arrangement but doing it this was has worked for me and given me the added security of starting my IVA with things up to date paid for by cash not credit for the first time in years!

[size5]

See your point Carl, but that assumes an ideal world which we both know we don't live in.

[andrewgoodman121]

I am with Melanie's team and have my creditors meeting scheduled for the 13th February and i too made my first payment to Melanie prior to the meeting and i am glad i did so as it will show that i am committed and want my IVA too succeed and i have already got the first payment out of the way.
I know it is 60 months, but i would rather that than 25 years struggling with credit cards and extortionate interest which is what does you in.

[Adam Davies]

Hi
Interesting that there are varying views in the industry.
Some IPs advise to stop making payments,some to make token payments and some no advice at all.
I guess the important thing is to stick to whatever your IP advises however I really don't think that it should make any difference to the outcome of a creditors meeting,if it does then everyone should be advised to make payments.
Regards

[maxdebt]

I had negative disposable income for 4 months so was unable to make even token payments for 4 months. I was with a company who promised they could get me an interest only remortgage, but after 3 months of failure they gave up! I was facing bankruptcy, loss of home and perhaps job. Then I found this site. Welshboy got me an Interest only mortgage in just 3 hours!! That freed up enough disposable income for Melanie to put together a proposal of 25p/£.( At the time I begged her to offer more cos I was terrified of the proposal being rejected, but Melanie said the proposal was realistic based on my I&E and to offer any more would be unsustainable for us.) Melanie and her team were right. [^]I was wrong. [:o)] Proposal accepted by all creditors despite me not paying them a penny for 4 months. I kept in close contact with my creditors throughout so they were always up to date with what was happening. I think that's important

[Shining]

maxdebt that is a very reassuring story and not dissimilar to that of mine, Welshboy got me an interest only mortgage too as we didn't have enough disposable income, I haven't paid creditors either for 4 months. Hubby just rang me to tell me he is on the way home now and the bank has rang him 4 times now (HSBC) each time he tells them to ring after 8pm, being persistant when really he will only be telling the meeting is tomorrow! He can't say it at work as he has his apprentice with him!

[size5]

There is no right and no wrong way, but I do feel that you should pay creditors if you are capable of doing so, even at a lesser amount.

As a commercial organisation, if I take the payment then I will charge for my services. Ethically I just feel that that money should go to the creditors and not to me.
Economically it works also, because the retention rate for those that do not qualify for an IVA and who have to go on DMP is really quite high so I lose nothing by, effectively, working for nothing in the initial stages.

[elizabethr]

Maxdebt - can you tell me what sort of mortgage you got. I too was wondering if I could remortgage and offer f & f - only just thinking of options at the mo. I tried to remortgage with my current lender (Abbey) in the summer but after two months of waiting found out by third party that they had downvalued my house and I couldn't borrow as much as I wanted so I told them to stuff it basically. I think they messed up and I should have complained but I really can't be bothered with the stress. I don't see how I can borrow just a bit know as the Abbey wouldn't lend me anymore I don't think if I wasn't settling the debts (they wouldn't realise I was going to do an IVA or offer F & F. Hope this makes sense. Things I would like to know is what was your mortgage, what extra did you borrow.

[Adam Davies]

Hi Size
Companies that ask for a payment before the IVA is agreed,and that payment goes towards the IVA or it is refunded,are working the same as you are i;e no IVA agreement no fee.
The question is do you start paying your IVA earlier or do you pay creditors pro rata whilst your IVA is being agreed.I think reality is that most people,including myself,would rather start the five year IVA a month or two early.
Yes creditors should receive as much as possible but in the grand scheme of things,with IVAs being accepted between 6-8 weeks from start to finish,it will have little effect on the end result
Regards

[maxdebt]

Had I any disposable income at the time I think I would have used it pay my creditors (proportionately). Elizabeth my mortgage is an interest only fixed for 2 years at a reduced rate. It combined my existing mortgage (costing me £660 a month) and a secured load (costing me £700 a month) total secured payments £1360. After interest only re mortgage payment now £770. I now had over £500 disposable income to use in an IVA [:)]

For full details of available mortgages please contact one of the professionals who contribute to this site.

[maxdebt]

Oh dear isthereanend that's awful!! I too had a creditor who contacted me at work and they got me into a little bit of trouble ( you can have a look at this old thread if you want http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=3948 )
Good luck for tomorrow. Although if you are with Melanie’s team it’s not about luck it’s all about professionalism, knowledge, experience and oh just their whole attitude to IVA’s!!

[Shining]

I think you had it a little worse than he is maxdebt that's the first time they've rang persistantly! I hope they do ring tonight after 8pm like he's told them to and then we can explain they cannot bother him on his mobile during work hours as it's not convenient to talk.