In the meantime?

[kesw]

Hello, I am new to this forum and am looking for some advice from those who are entering or who have already entered into an IVA. My husband and I are currently looking into an IVA and we wondered what happens with monthly payments while the IVA is in the beginning of the process. Is it best to not pay anything, pay say £5 to each creditor ( we have 13 creditors in total) or pro-rata payments?

[chardonnay]

Hi kesw and welcome to the forum.
One of the experts will advise you on this. In my case I paid token payments while I could (31 - £5)and then when I'd chosen a company and had the ball rolling I stopped (my company fees were allI could afford and I just explained to creditors that I was in the process of getting professional help and I couldn't afford to pay.
Good luck with finding the right solution for you,
Hugs,
Chardonnay

[aguise]

Hi there and welcome to the forum. It is quite usual to be told to stop payment sto your credits whilst an iva is being arranged or sometimes as you say to make token payments. Token payments should be pro rata to the amount of debt eg £1 for every thousand owed so that all are treated fairly. Not paynig enables you to get a little behind you and also to have your first iva pament ready and waiting. We had not defaulted on any paymnets until this point but were told to stop payments which we did.We had 17 creditors. You do get creditor phone calls asking for payment but again this is usual, but dont be pressured into paying anything. Your Ip wll advise you on all of this anyway.
Wait for other answers as I am not a technical expert.
Keep asking about anything at all that is what the forum is for.

All the best

Ang

[indebtforever]

hi if you are in the process of an iva i would try and hold on and dont make any payments till it looks like it will go through because if it does you will be told to stop paying creditors anyway and this extra cash will come in very handy for emergencys whilst in an iva.


regards keep posting[:)]

[indebtforever]

And if you do go for an iva remember that some companys charge upfront fees that you dont need to pay as in some cases of failure you would lose the money.Speak to some ip`s on here all are recommended especially melanie giles[:)]

[kesw]

Thank you for your helpful replies. It is difficult to know what to do for the best. When I asked our IP the question, they replied with " we are unable to advise you as to what to do. all i can say is that you should not favour creditors over each other" which I totally understand. We are looking to make the IVA work and do not want to do anything which may jeopardise it.

[MelanieGiles]

I usually advise my own clients to stop making payments, as this does enable you to reassess your finances and determine exactly how much is affordable. It also gives you time to see whether you can manage on the level of allowances you will be required to have under the IVA, and allows a little contingency money to build up in the meantime. In reality, it makes little difference to the outcome of the meeting whether you make token payments or not to be frank.

[Soulgrowth]

Hi Kes ... just wanted to say welcome to the Forum

My IP advised as Melanie does. By stopping paying your creditors it really does help you get on top of things again and regain some stability and control with your finances as well as building up a bit of a contingency plan.

Debbie