Paying creditors whilst waiting for IVA

[Martha07]

HI can anybody tell me the best thing to do whilst waiting for my IVA to be set up?
I have just sent my paperwork back to Clearstart and am already struggling to pay my creditors. I notice some of you have cancelled all direct debits to creditors but I don't want to end up in a worse position if my IVA is rejected.
NB. I have debts of approx £32000 and am offering £280 /month

[aguise]

Hi Martha
I would ring clearstart and ask them what they want you to do. It is usual to either stop or only make small token payments whilst your iva is being arranged, but best to take their advice first. You will need to stop payments at some point to allow you to have payment ready for an iva. Give them a ring.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[iva.com]

Hi Martha,

As Ang states you should seek your IVA firm's advice here. If you do cancel your direct debits try to keep the money that would have been paid so that if your IVA does fail then you will not be in a worse position.

If the proposal that your IP is putting forward is the best for all parties then it is unlikely that it will fail.

Good luck with your application.

Kind regards,
Terry Balfour
IVA.com

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