hi all, in the process of awaiting my documents

[rooney22]

hi all,
im just in the process of awaiting my documents to be delivered and im slightly nervous as it seems a lot of bad press has come the way of BE so as you can imagine im thinking "perhaps not" but then again the way people have talked in the last post it seems like thing are picking up. im hoping you can answer a few questions that could help me

1) i was asked to cancel my direct debits and then advise my collectors "i was waiting for an iva and to pass on the details of BE" is this the usual case?
2) to open a new bank account?
3) if my money never changes and i never make any extra money are they still allowed to ask for extra money?
4) while im waiting for my iva approval can my collectors still chase me even if i have advised them of the iva?
5) most importantly if my iva is rejected and i have cancelled the direct debits what is my best plan of action from there?

hopefully someone out there can help as you all seem a pretty knowledgeable bunch

[Skippy]

I'll try and answer your questions in order:

1) Yes, it's normal to be told to cancel your direct debits and not pay your creditors. If you get calls, give them the details of BE.

2) If your current bank is linked to one of your creditors it's important to open a new account with a different bank.

3) If nothing ever changes in your I & E then your payments won't go up.

4) Creditors can and most likely will chase you whilst your IVA is being set up. There's not a lot you can do about this other than change your number I'm afraid.

5) If your IVA is rejected your other options are a debt management plan or bankruptcy, but I'm sure it won't come to that.

[Tanya79]

Hi rooney22,
I would agree with all of the above. Having been with an iva company for the past 3 years, it is still quite fresh in my mind as to what I had to do. You will find that a lot of banks are connected, and so it is important to find one which is not connected to the one you are with presently.
You will be expected to report all income and expenditure to the iva company on an annual basis. After which, they decide whether you can or cannot offer a larger payment.WHat I would say to you, is that most people have a slight increase in wage, and you MUST report this to them too. As i have found out, if you don't it will only come back to bite you!
The iva company advise you to cancel all payments, as if a payment was to go to one creditor and not another whilst you await your iva to go through-this can be seen as you favoring one creditor over another (they don't like this)
Finally, it is very normal for the creditors to try and contact you before and during the first few months of the iva. But don't worry, as this soon tails off.
Hope this helps, and good luck x

[kallis3]

Even if you do get a payrise, your expenditure will probably have gone up as well so your payments may not alter, mine didn't last year.

You can make token payments to your creditors if you wish to, but you should do it to all of them. It's up to you.

[Debtwitch]

Hi Rooney

If you're having concerns about BE, you have time to change. You only have to look at the links here on the left-hand side and at previous posts to find recommendations.

Kind regards,