is the intial payment higher?

[chris_p]

When you get your IVA approved is the intial payment higher the the agreed monthly repayments as you havn't paid your creditors repyments for a number of weeks beofore hand

[aguise]

hi there
my payment was just the agreed iva payment even though I had paid nothing to creditors for the six weeks before. Your iva payments will be for the agreed amount on your proposal. Hope this helps.

[neverending]

Aguise is quite correct and generally your IP will advise you to stop paying all your creditors once you agree to go down the IVA route.Use this period to get yourself"straight"i;e pay your utilities upto date,council tax etc,etc.Once your IVA starts you will be on a tight budget and will not be able to catch up on any outstanding bills.

[MelanieGiles]

Your IVA payments should be at the same level all the way through. However, if you have built up a cash sum by not paying your creditors in the time it has taken your IP to put the proposals together, then this should be paid over as "cash in hand".

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Well this never happened in my case and wonder how others on this forum have faired ?? If you are not told to do this how will you know ??

[MelanieGiles]

Because you make a declaration of assets to your creditors, which would include debit balances held on bank accounts.

In practice this is rare, and personally I would rather see my clients starting off with a bit of money behind them than not, but if the IVA has taken several months to put together, and there have been no payments to creditors, a good IP should question whether any monies have been saved - and these should be declared as an asset.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[neverending]

Melanie
Quote--------------------------------------------------------------------------------

Because you make a declaration of assets to your creditors, which would include debit balances held on bank accounts.

This is done at the application stage and the time difference between this and the acceptance can be many weeks.The debtor has not done anything wrong if they use this money to get a "head start" but i agree that they must disclose any savings made if asked.

[chris_p]

Thanks for yor replies so do you think it is best to take any cash out of my new basic bank account for personal use in the meantime

[chris_p]

Also would all the extra salary if I got a better paid job whilst I was on the IVA go to the creditors?

[MelanieGiles]

chris_p

You must make an honest declaration of your assets at the time that your IVA is proposed - so I would not recommend taking money out of your account to hide it from your IP, but of course you have to live in the meantime. I am sure we are not talking about a large sum of money here, but take your IP's advice on this point and make sure he/she is aware of what you have in the bank.

If you receive a higher salary during an IVA, then your IP will reassess your circumstances at that time. Don't forget to tell them about any increases in expenditure so that these can also be taken into account as well.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[chris_p]

Thanks Melanie. It was about seven hundred pound. Mind you living expenses have to come out of that as well.

[MelanieGiles]

Keep it as a fighting fund. You will probably need it at some time in the future, and you do have to fund yourself up to the time of the creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk