Hi All, I'm in the process of an IVA and reading through the posts here I have all the same feelings, it is a true rollercoaster ride of ups and downs, you start feeling good about the situation and then get a call from one of the creditors and you come tumbling back down to the fear factor again.
So I'd like to ask those who have an IVA already and the IP's/experts here what should I be doing while the IVA process is ongoing. The creditors last week told me that I should be paying them a token payment out of the disposible income I have while the IVA is in progress and that if I don't they could take me to court, my IP said that I should talk to my advisory company but I should not favor one over another, the advisory company has said don't pay anything and if I do make sure it is very small (like £5) but pay it to all of them, but only one creditor is chasing payment.
Also the loan company has taken their money from my bank even with me cancelling the direct debit.... Should they do that it's increased my overdraft that is part of the IVA anyway (same company the current and loan and I have a new basic account now)
It's all so confusing who is giving the right information and I fear any court action. I also hate that feeling of hitting the floor everytime the phone rings and it's a with-held number.
So please can you share your experience and provide some advice here.
Many thanks
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
The loan company taking money from the overdraft is a nothing thing as it is basically robbing Peter to pay Peter. The loan balance will reduce but the overdraft will go up. This will have no affect on the IVA.
As for the creditors it would be almost impossible for them to get to court before your IVA was prepared unless there is already serious legal action commenced or the IVA drafting process takes months. The advice you have been given is all good advice and the decision is down to you. The IVA process only takes a few weeks so giving a creditor who is constantly ringing a couple of pounds to leave you alone is not going to cause any long term problems. Alternatively, do not answer the phone to numbers you do not recognise and divert them asll to answerphone. You can then ring back those you want to.
As already said on the other thread, its the call centres who phone and want your money, some will phone more than others (barclays, HSBC, MBna are the most persistent). They wont go to court if youre doing all you can and most of what they threaten is fresh air. Their power is your fear, so dont be scared anymore, tell them what your doing and hang up. Dont hit the floor when they phone, remember that youre trying to address it and make them listen to that fact. The words blood and stone will get through eventually. I found it easier not to make token payments for the drop in the ocean it was going to make to my overall debt, them moaning my token couldnt possibly be enough to stop the baliffs or to have me shot at dawn etc. I just thought, sod this.
The banks have a right of offset to any money you owe them so they will take the loan out, mine did even though I had cancelled the DD.
Last edited by freelili on Mon Apr 27, 2009 1:37 pm, edited 1 time in total.
But is there a right or wrong to paying any interim payments, I mean I have paid 2 months to my advisory company which I am guessing a fee, I then have to sort payments out with my IP, so I guess month 3,4 etc if the IVA wasn't in place I should set that aside and provide it to the IP when the IVA is put in place, or should I use that as payments to the creditors?
I have a letter from the advisory company stating that the first 2 payments are instruction payments followed by 60 IVA payments, this would be assuming that the IVA was in place by month 3, which by the sounds of it is never the case.
I am sensing this is a bit of a grey area
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
Btw, I just don't want to get this wrong and want it to go smoothly, there is about 75k worth of debt, so the stress of this failing on something minor is quite high for me.
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
The advisory company should provide your IP with a completed file by the time they have received the second payment. The IP should then be able to draft the proposals within days of receiving the file and it should then be circulated to creditors quickly afterwards.
Whether you make token payments or not should not affect the outcome of your proposal but if you can afford token payments at any time it may cut down on the calls you receive.
Thanks Michael, it was only a mortgage redemption statement that was missing, given that the current really low interest payments the IP wanted to ensure that this was covered in the proposal and that the full settlement charges to my fixed mortgage were visible, they should have this today now (scanned and emailed) along with the paper documents tomorrow. So fingers crossed for me, oh the second payment comes out Thursday on payday so there isn't any movement in my budget for token payments
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
As Michael says - don't worry about the loan being taken out of your account, HSBC did that to us all the time!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In my experience it makes absolutely no difference to the outcome of the IVA whether creditors make token payments or not - but it can take some of the telephone/nasty letter pressure away in the first place.
I told my creditors that (a)my proposal had been signed and (b) the first payment under the proposal has been sent to my IP -Melanie Giles, address etc. They seemed to have accepted that and awaiting hearing from Melanie after the meeting of creditors. You could try that approach.
So, my IP should now have all the required details ( I think it may be Melanie or someone who works with her) what happens now?
Also I am avoiding answering the phone to numbers I don't know, can I do that? Surely they would write anyway? And the letters I am passing onto Vincent Bound who forward them to my IP anyway. Is the what I should be doing?
How long does it take (in the real world) from this stage to the point where the creditors stop phoning?
Sorry for these questions, and I'm sure the person who called explained this but as people in this position will know it becomes a bit of a blur with the worry of it all.
Approved 3rd June 2009 first payment made on the day.
Offer made and settled - happy days
76.5k debt creditors:- Northern Rock, MBNA, Barclaycard, LloydsTSB and Capital One
Hi
Creditors will stop once the IVA is agreed, some posters see a down turn in the week leading upto the creditors meeting.
The reality is it may take upt 6 weeks from this point, it will depend if Mel has all the info that she needs, if you are self employed you will have to go and meet her or Sue Clay.
Rest assured that you are in a very safe pair of hands
Regards
