Living costs before IVA Approved

[frazzled1234]

Hi,
Can anyone tell me what to do whilst you are waiting for an IVA to be set up?
For example I am thinking of setting up an IVA but nothing has gone through yet as am still researching. In the meantime I cannot afford to pay all the direct debits payments that come out of my current account and still afford my priority bills such as rent, food etc as I have just had to move out and now have these new costs.
On top of this I really desperately need some dental work done(root canal £200!!!) which i also cant afford.

I was thinking about opening a new bank account and then getting my salary paid into there so that i can afford my priority bills. Obviously that means none of my credit cards etc will go through on direct debit on my old account.

should I write to them and tell them i cant afford to pay or should i offer then as much as i can afford whilst i get the IVA ball roilling, or simply leave the money in my new account (minus the dental work)to be divided if I get accepted for an iva.

Any thoughts gratefully received - thanks

[cr15py]

I'm not sure whether this is the correct way to do it, or the recommended way, but what I did was cancel the direct debits for the credit cards. You will be advised to do this anyway by your IP once you start to go for an IVA.

It seems a bit silly to let the credit card companies try to take money out of your account when it isn't there, and run up two sets of charges (non-payment by CC company and "unpaid DD" from bank).

If you are up to date at the present with your credit cards, it will take them a while to start putting real pressure on you, so it will buy you a bit of time. I didn't pay my credit card for 12 months, and they didn't get particularly heavy with me!

At the end of the day, your health is more important. You need somewhere to live, you need to eat, and dental work is also a necessity.

My advice would be to contact an insolvency company (there are a few on this forum) and take some form of action asap.

Whilst writing, who are your creditors, how much do you owe each of them, and what is your monthly disposable income before repayments to your creditors?

Hope everything goes OK for you [:)]

Visit my blog at http://cr15py.blogs.iva.co.uk

[frazzled1234]

[quote]Originally posted by cr15py

I'm not sure whether this is the correct way to do it, or the recommended way, but what I did was cancel the direct debits for the credit cards. You will be advised to do this anyway by your IP once you start to go for an IVA.

It seems a bit silly to let the credit card companies try to take money out of your account when it isn't there, and run up two sets of charges (non-payment by CC company and "unpaid DD" from bank).

If you are up to date at the present with your credit cards, it will take them a while to start putting real pressure on you, so it will buy you a bit of time. I didn't pay my credit card for 12 months, and they didn't get particularly heavy with me!

At the end of the day, your health is more important. You need somewhere to live, you need to eat, and dental work is also a necessity.

My advice would be to contact an insolvency company (there are a few on this forum) and take some form of action asap.

Whilst writing, who are your creditors, how much do you owe each of them, and what is your monthly disposable income before repayments to your creditors?

Hope everything goes OK for you [:)]

Visit my blog at http://cr15py.blogs.iva.co.uk

silly question but do i cancel all direct debits thru the bank - do I just write them a letter or call?? Thanks

[cr15py]

You can cancel the direct debits through the bank - that's what I did. I cancelled in writing, because I don't like dealing with people face-to-face or on the telephone!! [:p]

Chris

Visit my blog at http://cr15py.blogs.iva.co.uk

[isis96]

If i remember rightly I didn't cancel my payments I wrote to all my creditors explaining i was going to be entering into an iva and sent them a token payment of £5 until this was sorted out.

I would recommend contacting someone as soon as possible there are some great experts on this site, it really does make you feel better when you talk to someone about it, i was having panic attacks and really did think this is the end of the road for me, 3 years on and I am now happily married and expecting my first baby. I have come such along way since November 9th 2004 (the day my iva was accepted) i don't remember much before that apart from huge pressure and stress. I am now hoping (fingers crossed) that my creditors will accept my full and final payment due to my circumstances and looking forward to my future Debt free and a whole lot wiser where credit is concerned.

I have learnt my lesson and would warn anyone else think before you sign are you really sensible enough, i definetly wasn't at the young age of 18 !!.

Anyway enough of my ramblings , good luck and get in touch with an IVA company and get writing those letters.

[Skippy]

I cancelled mine using my online banking.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/