Starting the process!!

[newbe]

Evening all, just started my IVA process with Thomas Charles, debt of 26,000. Been through the forms etc, surplus over expenditure 250, Charles says 250 a month over 5 years and 2 months is 97 per cent obtainable. This sounds very good, too good to be true???, this would give return of 15000 on debt of 26,000. Also been advised to start stopping payments going out of bank account and set up new bank account(with new bank of course). This is before any meetings with creditors?? Is this the norm , your comments please

[MelanieGiles]

Hi there and welcome to the fourm

Thomas Charles are very experienced debt counsellors and would not give you those reassurances if they did not feel that your case was viable.

Most professionals will advise you to stop making payments to creditors in the run up to proposing an IVA - and this is done to ensure that no creditors are preferred during the interim period and also you are probably paying the firm to act for you as well.

[iva experts]

Hi Newbe,

The advice to stop paying your creditors and opening a new bank account is completely standard. The reason for not making any more payments to creditors is that no creditor can be treated preferentially, so if you pay one you have to pay them all.

[aguise]

Hi there Newbe
All the very best with your proposal and meeting. It is perfectly standard to be advised to stop payments to your unsecured debts, dont worry. You may start to get some calls and this is usual, stand firm dont be pushed into making a payment, they will try, some harder than others, but only for a short while till your meeting.
You definately need a new bank account if your s is connected to creditors and not with any credit so no overdraft.
There are quite a few.

Ang

[newbe]

Thank-you for your help.
Which bank should I go for? CO-OP is mentioned in forums.

[aguise]

The coop is getting very good feedback on here I would try them as long as non of your debt is connected top them.

Ang

[newbe]

this may affect my iva!, i have just learnt that due to something called job evaluation at where i work , i may have my job downgraded (43 percent chance), although i would keep my present salary for about 3 years, if i cannot find a new job that pays as well as present one how will that affect my iva!!!

[newbe]

Evening all, havent asked a question for a while. Process is going smoothly, Thomas Charles have passed me on to IP from Wilson Philips, all questions and forms have been filled in and returned.
Just a quick question tho, what is an R3?, MY IP has said that he will ring me tomorrow to have an R3 with me???, is this a final going over of the facts prior to handing case prior to creditor meeting?, as ever Newbe

[MelanieGiles]

It is strange, internal terminology seemingly unique to this particular firm which I believe means a client meeting!

[newbe]

thank you Melanie

[rollercoaster]

i had an R3 call, it is a formality where the caller will go through all of your options during insolvency and fully explain all the ins and outs of the IVA procedure so that you make a fully informed decision before taking out an IVA.[:)]