Please could someone tell me the best procedure

[Golf]

Hello

Firstly thanks for a great website I have found some useful information.

I am about to enter into the world of IVA’s after years of trying to pay off my debts!
Realising it is getting worse than better I have sadly come to terms that I need help.

I have applied for an IVA 40K across 8 creditors debt total.
My creditors meeting is on the 11th December 2007 and feeling pretty nervous!!

My question is that a few of my debts are with creditors who take payment for the full loan payment at the end of each month, probably guessed that these are typical loans till I get paid etc…

If they take the amounts from my account I will be £1000 out of pocket and as these are included in my IVA I will probably not be able to re-loan before the 11th December which means I will have no funds available over December to live on. If they did take payment they would not be in my IVA but I need them to be in the IVA so I have funds in December.

My IP has told me to write/email to these companies and tell them not to with draw from my account, some of them take automatic payment either by my debit card or a one off direct debit.

Please could someone tell me what the best procedure is and can I stop these payments or is this not allowed?

I look forward to any advice.

[aguise]

Hi and welcome to the forum.
I opened a new account and transferred all my debits to that including my wages, I then let loan payments either default or cancelled the debits. The ones with the bank I just did not leave the money for them to take. I did this as my company told me when I agreed to the iva to make no more payments so as not to show preference to any.
I would ring yopur company again and tell them you are not clear on what to do and explain about the fact you will have no money, you will need money for your first iva payment anyway if all goes well.
Wait for other replies but that was what I did.
All the best for your meeting
Ang

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

[dev92]

I was given the same advice as well by my IP, I cancelled all the direct debits, opened a new bank account with a different bank, then made sure my mortgage and utility bills were then paid as everything else was included in my IVA.

[Golf]

Hi

Thanks for the responses. I have spoken to my bank who are not part of my IVA and told them my circumstance but they told me that that I had to speak to my creditors as did my IP.

I have cancelled the direct debits but a couple of the companies take my payment as a one off direct debit, plus the other two take it from my debit card details. I have asked for a new debit card which will have a new number and cancel my old one.

I have applied for a basic account this afternoon but will only find out next tuesday if it is ok'd, however this is too late to tell my employee's. My bacs payment details need to be with them by Fiday if any changes!

Also how soon after an IVA has been agreed (everything crossed that mine does) will the 1st payment request be made?

Thanks

[OPTIMIST12]

I was told that the first payment must be made within 30 days of acceptance at the Creditors meeting.

[dev92]

Sorry can't help you with that coz we made a F&F which was accepted in Dec06 and they didn't ask for our money until May07, then we had our completion certificate Sept07.

[MelanieGiles]

I don't understand what you mean by "re-loan"? Could you clarify please, but if you are concerned that your bank is still paying direct debits payments to a loan account with the same bank, then this does not affect yor overall financial situation, and will be sorted out by your IP once the IVA is in place.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp