Too soon to apply?

[icebrick]

I haven't spoken to Melanie yet regarding the IVA yet. I didn't see the point of doing so before my salary is relocated. I canceled all the direct debits apart from my bills. So when the bank tries to take the loan repayment on the 28th, there will be no direct debit to take it from which means they'll either try to contact me or refer me to a collection agency. That's what I am really worried about. If I tell the bank now and the salary goes into their account it'll be worse (I think).
So I am still a bit baffled over what I should do next?
1) Should I get in touch with an IP?
2) Should I tell the bank that I am having difficulties?
3) Should I tell the bank I am entering an IVA?
4) Should I tell the bank and my IP that I am taking a rocket and flying to a new holiday resort on the moon?
Cheers.

[icebrick]

What about the other CC companies apart from the bank? Should I tell them that I am entering an IVA because they'll be chasing me over the repayments too. Cheers.

[MelanieGiles]

I recommend consultation with an IP at an early stage - just so as you have someone on your side to deal with the creditors. There is no harm in telling your creditors that you are thinking of entering into an IVA, but the first thing they will ask you is who is acting for you, and if you say that you have not consulted anyone they will continue to harass you for payment.

[ianmillington]

Agreed, until you have a 3rd party intervening you will get harassed more and more for money, hence my earlier advice to consider token payments until such time as you know what you are doing, and who with, so as to prevent unnecessarily triggering defaults.

You lose nothing by speaking to an IP or even a couple, but a word of advice - don't speak to so many that you end up dying though too many doctors. Not all IPs will agree 100% on everything, and if you ask too many different people the same question you will end up with many very similar, but in many cases slightly different answers, and you will simply wind up more confused.

A few points you might like to take on board when doing your research/phone calls:

1. Can you get to speak to the IP or someone senior in the firm?

2. Do you feel the person on the other end actually knows what they are talking about, and/or is prepared to call someone else in to answer any questions they can't?

3. Importantly are you being told what you need to know or what you want to hear? Are any potential problems highlighted early on? If not, then are potential problems waiting for you at your creditors meeting?

If you bear these basic principles in mind, you will most likley find an IP who will do the right job for you.

Ian

[icebrick]

So what exactly are token payments? Aren't they the same as regular monthly repayments?
Also, say if I wished Melony to act on my behalf and spoke to her in person or over the phone, then would I be able to tell my creditors that should they contact me? Reason why I am asking this question is because I know it takes a while for an IVA to be setup.
What happens if my creditors refer me to a credit collection agency during that time?
Cheers.

[Adam Davies]

Hi
Token Paymets are nominal payments of usually between £5 and £50
If you could only afford say £200 per month betwen all your unsecured creditors then you would pay this out pro rata.So if,for example you owed 40k you would pay £5 for each 1k owed to each creditor until your IVA was approved.
Some IPs advise to make no payments whilst arranging an IVA,something that I agree with.
Yes you xan state to your creditors that you are taking professional advice and that all matters should be pointed towards your IP,many creditors will ignore this request and will continue to chase you,all part of the process of an IVA i'm afraid.
Regards
Regards

[Viki.W]

Ross, You really need some help and it will be a huge relief just talking everything through with someone. I put things off for ages but I wish I hadn't after I spoke to Melanie's team. I wish I had made that call straight away. Please let us know how you get on. Good luck (and phone an IP on Monday!) Viki X

[icebrick]

I am planning on calling Melanie this Thursday or hopefully Tuesday if I get off from work early. But after I make this call can I tell my creditors that Melanie all inquiries should be directed through her? And should the creditors chase me over repayments what can I tell them to get them off my back? Cheers.

[Adam Davies]

Hi
Once Melanie has spoken to you and gone through all options[including DMP and bankruptcy]she will give you an idea of your options.
Your creditors will still chase you for some time but as I said just tell them that you are taking professional advice regarding your debts and can make no payments or only a token payment.ou will just need to be firm and persistent
Regards

[icebrick]

Until the IVA is in place, I am thinking of answering only the initial calls and leaving the rest for voicemail. Do you think this is a bad idea? It's not to avoid the calls, but to save my breath.
Cheers.

[Viki.W]

Everyone has a different way to deal with calls. I didn't answer my mobile for a week but I now answer and tell them that an IP is dealing with everything now and tell them my situation. It won't stop them calling, we are just on a list and that's their job. Some people choose not to telk to them at all. Personally, if you are at the initial stages I would talk to them because they are usually ok at this stage, well, they have been with me. Good luck, Viki X

[icebrick]

oh well I got in touch with Melony's team and received an email reply. I then phoned the person who had written to me originally but found her to be piled up with calls. I then asked if she could return the call the next day but received no reply there. So I decided to go with Grant Thornton instead. Hope it works out through them. I hear they are extremely good themselves.
Cheers.