run through

[chilipepper]

ok can someone please run through an iva for me please
what exactly happens how much do you have to pay etc etc
thanks

[Viki.W]

Hey chilipepper, you need to make that phone call to an Insolvency Practitioner, everyone's case is different. I recommend Melanie, you can get her details from the "meet the experts" page. Good luck. X

[chilipepper]

i cant yet my child tax credits havent come through so dont know exactly how much i will have total a month
I just curious as i have read about creditors mettings etc wondered what they were

[Viki.W]

When you phone the IP you go through ALL your expenditure and income and debts etc. Your disposable income is calculated and then you have your options discussed with you:- IVA, Bankruptcy, Debt management Plan. Once you are decided and IF you choose an IVA, a creditors meeting is called, they all vote and it's either accepted or rejected. Lots more than that, but that's the general idea. X

[chilipepper]

thanks do i have to attend the meeting? Im no good at that sort of thing

[chilipepper]

one last thing how long in your opinion does it take to go through from start to finish?

[Viki.W]

No, you won't have to attend the meeting, it's rare that an actual meeting will take place, usually your creditors will vote by fax, phone etc. It could take 4 to 12 weeks depending on your circumstances and your IP. X

[chilipepper]

really that long!
gosh thats what im worried about dont want to cancel the direct debits if its going to take that long i couldnt stand the hassle off the creditors etc

[Viki.W]

I completely understand, I haven't paid for 5 months now and it's starting to get to me now. The thing is chilipepper, if you can't afford to pay your creditors then you should maybe only offer them token payments as you will need to get a contingency fund together for whatever debt solution you choose. Your IP, when you discuss this, will probably tell you to stop payments and change banks. X

[Locko]

Hi my creditors meeting is 21st August and I stopped paying properly at the end of April for some and then June for others. Have had quite a few letters but not to many phone calls. I have also been sending them £2 a month postal order and a letter telling them about the IVA. I'd bite the bullet and get the ball rolling as its not that bad - good luck xx

[angelrainbow]

You really do need to pick up the phone and make that phone call! Set aside a good 60-90 minutes for it though!

They will go through everything with you, your income and outgoings, amount and type of debt, whether there are any proceedings underway for outstanding debt, assets you have
etc etc.

The next step for us, after we founds out we qualified, was to get together a load of documents...bank statements, loan and credit card statements, rental agreement, child benefit and tax credit proof of entitlement (my tax credit thingy came today, but I gave them last year's figures).

They then went through all that and sent us out a form to fill in..this asked us for some detail on our debts. When taken, how much for, why taken out. We then had a page to write why we had got into a muddle (for us this was my OH's divorce and us having children).

They then use this info to draft a proposal for the IVA which they send for you to read through(there was also a form we had to fill in for the court to sign). Ours was signed and sent back last week. We were told it would be 3 weeks from receipt of this to the date of the creditor's meeting (where those you owe money to vote on the proposal)

We made the initial phone call at the end of June so we are looking at 8-9 weeks or so from phone call to meeting...hopefully.

This is where I am at and I think I have explained what has happened to us and when, but I am a newbie so may have made errors or missed something out!

[Til]

Hi Chillipepper
We bit the bullet when our IP told us to stop all direct debits and change accounts and so pleased we did - it gave us back control and for first time in years I decided who got what money from me - very liberating [:D]

Whilst the odd calls from creditors and letters were a bit scary we just kept telling them we were having difficulties paying, we could only offer token payments and that we were seeking professional advice in the meantime. Strangely just the fact that we were finally doing something made me feel better - as if we weren't floundering about anymore...

It is a bit scary but so far I can honestly say it's the best thing we've done in years and finally we are back in control of our money!

Good luck with whatever action you take xx

[moretolife]

it is a scary process and depending on paperwork etc can take a while...

ours took from may to september.....
we did ours in the run up to our daughters wedding two years ago..so you can imagine what that was like

but it does go quick and altho we did have calls at times we just said the same thing over and over again

start the process now ....keep us informed