Payments up front?

[downsizer]

Hello all
This is my first post so please be gentle with me

I finally took the plunge and investigated debt management and IVA's, spoke to a nice man at Think Money and they suggested an IVA as my best option. I was referred to Freeman and Jones who have sent me the relevant documents to fill in, and a request to make an initial payment next week to put into my IVA fund.

However I then discovered this brilliant forum and read that it is not wise to part with any money until the creditors agree to the IVA?
I then spoke to Freeman and Jones who told me they would not put my proposal foward unless they were extremely confident of its acceptance, and that the firt payment would show my commitment to going ahead with said IVA?

I am now a little worried that I am doing the right thing, despite reading some excellent reviews for Freeman and Jones elsewhere...

ANY advice would be greatly recieved and appreciated.....

[zeozhane]

My IVA company (mccambridge duffy) have advised making the 1st payment when i get paid so that if my iva goes through the 1st payment is there.

They have also advised that should it not go through that i would get a refund of this money to pay my creditors.

Hope this helps

[jtomo64]

Generally you have 30 days from IVA acceptance to make the first payment, so I dont really see a need to pay up front. That said, I dont think it will be an issue, I am sure that you would be refunded should your proposal fail, and it may well be the case that it shows commitment, but I dont really know why it would.

Maybe an expert will be along to reassure you soon.

Good luck!!

[Shining]

Hi and welcome to the forum, I think a few companies (mine included) requested a months payment up front to show willingness to the creditors, however, check what happens to the payment in the unlikely event the IVA is rejected, with myself it was refunded to me in full.

All the best.

[sprowstonboy]

Hi

My first proposal was with a firm that wanted me to start paying asap (not freeman jones), 3 months later when the proposal was rejected and i was told that it would take a 60% increase in the monthly payment to get the proposal accepted i was a touch disappointed. I had given this firm over £1,200 and they would not refund any to me. I found a much better IP through this forum who does not require upfront payments which gives you the opportunity to build an emergency fund. Shop around before you commit!

[kallis3]

Hi, and welcome to the forum.

I'm with Payplan and didn't have to make any payments upfront at all. The first one was made a week after the IVA was approved.

However, one payment upfront is ok as that should be your first payment.

Good luck with the application. We're here for any advice and support you may need.

[Shining]

Always ask though if this will be refunded in the event of non-acceptance of IVA x

[downsizer]

Firstly thanks for all the replies, it has been a little stressful trying to sort out the right IP, but the above comments have helped to calm my fears

I have been told that if in the unlikely event that my IVA proposal fails then I have 14 days to claim the money back, or alternatively it could be used as a first installment into a debt management fund...so i suppose it is all above board. With that in mind and from the above comments I think I will go ahead with Freeman and Jones as I just want to get the ball rolling.

Thanks again to all those that left a post, and I will let you know how things turn out.

[Michael Peoples]

Best of luck and hopefully your IVA goes through smoothly. Then you will not need to ask for your money back.

[kallis3]

Sounds ok to me. At least you know you can either have the money back or use it for a DMP.

Hope it all goes through ok.

Let us know.

[Shining]

Sounds good to me too and all the best with your IVA x

[orange]

hy we went to one guy who wanted £3000 up front....!!!! we were at the end of our tether to think they wanted to send us further into debt. thankfully we are coming up to our last year which is the make yp the lack of equity...all down hill!!!

[MelanieGiles]

Personally I would not pay, or ask to be paid for anything, unless the IVA proposal had been prepared for me to read through and approve. If you do decide to go ahead with this firm, then I would make sure that you are able to get your money back if you decide to change your mind. If you are only at the stage of an initial enquiry, then personally I don't feel you should pay anything.

[wannabedj]

I paid 3 payments up front. But this wasn't to my IVA compamy (Blair Endersby) but was to Baines&Ernst.

[Adam Davies]

Hi
Upfront payments or no upfront payments, the main point is to make sure you know exactly what your payment is for, whether it is refundable or not and if it can be used for an alternative solution.
Quality of advice and quality of service is just as important as the cost of any solution.
All companies and experts should give free advice.
Regards