www.iva.co.uk

We are currently going through the iva process, just waiting for the proposal to be sent to us. My question is a creditor phoned me yesterday and asked for a token payment i.e £5, saying this would look better when it came to the creditors meeting that we are at least trying to make some sort of payment. Is this right?

Hi sue. I can't answer your question, only advise you that I haven't made any such token payments as my IP advised me not to.

One of the experts will be along soon to give their opinion.

Welcome to the forum [:)]

You need to ask your own IP what they suggest. If they do say it's ok to make token payments you will have to make them pro rata to each of your creditors so you aren't favouring one creditor over another. e.g. if creditor A is owed £10k and you make a payment of £5 to them you would need to make a payment of £10 to creditor B who is owed £20k.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

from a creditor point of view i think it's a good idea for you to make token payments. most ip's will advise you not too as they say this will be a preferential payment however if follow skippy13's advise there can be no real argument. however will this make me view your proposal differently? the answer is unlikely.

Hi

Been there and done that....Pay them a token payment.It doesn't mean the IVA will be more or less successful if you did or not, but it shows you are co-operating 100%. As Optimise a poster in another post say keep them sweet and don't upset them.

"Always think outside the box"

Hi
Take advise from your IP and stick to it.
We've had stories on here of people making a payment to keep a creditor "happy" only to be phoned a couple of days later for another payment.
Regards


Andy Davie
IVA.co.uk Spokesperson and Website Manager

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

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

Agree with Andy, they'll only be back for more and they'll say ' if you could afford that one, you could manage another' etc

The callers will tell you all sorts about what they will or won't do with your IVA if you don't pay but the people making the calls don't get any say over the final decision.

Ultimately go with what your IP advises though

I think that Insol's answer on this thread sorted that question out!

Isn't it great to have a creditor voting representative posting on the forum. Thank you for your time Insol and balanced attitude.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

If the banks collection dept ask for a token payment,they will take it and note it in your file. It is GOODWILL GUESTURE as the RBS collection bloke said to me in the past. Even £1 is acceptable to RBS before a final resolution.

Yes there are times when the calls still keeps coming a day later but that's an automated dialling system at work.You can explain to the operator to deal with it.

I find EGG to be the most polish and undertanding as their specialist borrowing team will take a token payment and will not bother you whilst the defaults are issued and arrangements are underway.

I suppose if you own money then you will be chased as you would if your mate had lend money from you.

People should not change phone number and refuse calls as I have read from some posters.

Communicate....



"Always think outside the box"

I agree that you should communicate Skipper, but I will only speak to someone if they are civil to me. I've read too many posts on here where people have been reduced to tears and there's no excuse for that. I was ok as I have worked in the court service and in a call centre so a couple of idiots from MBNA weren't going to upset me, but other people aren't so hardened to it.

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

MBNA are idiots and very unprofessional, so I totally agree SK13, they were the worse of the bunch and I did admit I was close to been rude.
I recalled that they wanted an explantion on why I can't pay after making 99% on time payments for many years. And I had to explain everytime I called to pay TK payments.

I didn't get that from any of the TIX creditors.

That one creditor is a nightmare when you want to declare you are IS or BR.

"Always think outside the box"

I told them that if they didn't stop ringing me at work I would lose my job and they wouldn't get a penny as I'd have to go bankrupt! The ironic thing is they didn't even bother to vote at my creditor's meeting!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

I wouldnt speak to my creditors verbally (I have a right to do this) as I found them to be rude and couldnt or didnt listen, I agreed to write to them and I did, I replied to every letter, they are not as rude in a letter and you have proof of what has been said. I was so sick of repeating the nine o^clock discussion at ten, eleven etc, etc, etc.

It has to be remembered that everyone deals with these calls differently and in my case I found them very upsetting. The office staff where I worked had to track me down too, which they got sick of.

There was one occaision that I made a token payment and the operator 'accidentally' told me she had put another payment through for two weeks later.

I didnt owe the money to these callers who tried to make me feel ashamed and would lie in order to scare me so they could meet their targets for the day, I owed it to the company so I chose to comumicate with the company.


lily

Before I entered into my IVA, I made a £1 token payment to each of my creditors (8 in total) on the day that the original payment was due.
I did this by postal order so as not to cause any more problems with my current account such as cheques bouncing etc.
When one of my creditors phoned me, they wanted me to explain why I hadn't been meeting my agreed monthly payments etc.
I said to them that I had been sending a token payment until the outcome of the creditors meeting and that they should have received it.
They seemed happy with this and left me alone.
Payplan then advised me to stop any further payments which I did, the rest is history as they say.

'56 and counting as of 21st November 2007'