Token payments

[marie]

Hi All

I sent token payment cheques to 3 of my creditors,on thursday,using my bank "Halifax" (one of my creditors,using my overdraft) they must have recieved my proposal in the meantime as my balance now says nil
and enquiry only on my account on my online banking(so as i see no longer my bank ! i'm now with tsb now anyway).There should have been £15 left for these cheques to go out now they will bounce,will i get charged ? will these charges get swallowed up in my iva ? I was paying token payments as requseted by my ip.So now it will look like i've paid some and not others as i could only pay these ones by cheque.My creditors meeting is on the 19th june. Should i just now worry about it as my meeting is so near ?

Marie

[keh]

Hi Marie

First why did your IP tell you to make token payments when your entering an iva?

normal practice is to start paying into you iva whilst its being set up

Melanie will be around soon i'm sure and be able to clarify this and about the charges

Keith

The long and winding road will straighten out eventually....keep the faith

[ruby]

I made one token payment to my creditors of £2 each whilst my IVA was being proposed.

I did NOT make payments into my IVA before approval at the creditors meeting, I thought this was normal practice!


Marie, I think you should talk to your IP. They will put your mind at rest.

[keh]

To clarify my point above

When i first met with my IP and gave him all details about my debt he went through it with me and said that an IVA will be the best option.

He said that i should start paying into the iva now and tell all creditors what we were doing and refer them to my IP.

From the first meeting until the iva was accepted i made 3 payments and none to my creditors.

I accept that times have changed and that I might be wrong but can only go on what i was told at the time mine was being set up

Keith

The long and winding road will straighten out eventually....keep the faith

[MelanieGiles]

Marie

I would not worry about these small cheques or charges. It will hardly make much difference to your overall position in the great big scheme of things - and your creditors meeting is next week so good luck with that.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[marie]

Hi
These are the last token payments i have made ,my pia advised me to pay a little something of what i could afford,i didnt think my meeting would have been as soon as it is, now waiting for the creditors meeting on the 19th.I dont make any payments into the iva until it has gone through and been approved,then i have to make my first payment withing 31 days after the approval.

Marie

[marie]

Thankyou Melanie !
I dont know what i would do without the help and support from this forum,it's the best thing since sliced bread ! (as they say !)

Marie

[Adam Davies]

Hi
I would advise anybody that is advised by their IP to make token payments to use an account from a non creditor or send postal orders.It doesn,t seem right to use a creditor that will form part of the IVA to pay other creditors,even if it is only a small amount.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp