I've read elsewhere on this forum that an IVA can take up to six months to set up. That being the case, what happens in the meantime once you have applied for one?
Do I have to keep up the payments on my credit cards? If so, what if I can't? Will this prejudice my chances of an IVA being agreed?
Hey pda93, a straight forward IVA should take about 8 to 12 weeks from initial contact to creditors meeting and in that time you should take the advice of your IP and either make token payments to your creditors or stop paying them completely. Mine took several months as I was waiting for my business to sell. Can you post a few more details about your situation so we can help further. X
Six months is the exception, rather than the rule. Mine took 8 weeks from start to finish.
If you are unable to make full payments, you can always make token payments to your creditors. Once you are well on the way to your meeting, your IP will probably tell you to stop making payments. This lets you build up a bit of a contingency fund, and also lets you get together your first IVA payment.
This does not make any difference to whether an IVA is agreed or not.
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
Viki, I'm not really sure what I can post up that would help. My monthly payments on credit cards and loans are in excess of my gross annual income, let alone my net income. I've still managed to keep up payments on them for several years (don't ask!) without missing a single one, but now the money is running out and I don't think I could carry on meeting payments beyond next month.
Kallis, thanks for that - it's what I wanted to hear!
The other thing I'm reading about is that there seems to be a cost to get an IV involved. I thought I read elsewhere that they get their money as part of the deal with the creditors. Which is the case please?
All IP's charge fees, but you don't pay anything separately to them.
There are some firms who do charge upfront fees to set up an IVA. These are usually middlemen who will just pass you on to an IP. Most companies will just require you to supply them with your first months payment just prior to a creditors meeting.
Alternatively, give Melanie Giles a ring, she comes highly recommended.
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
Have you approached an IP yet? I managed to pay all my minimum payments by using other credit so I can understand how you've been juggling! You really need advice from an IP, they will explain everything to you. There are fees for an IVA but they will come out of the agreed monthly payment so there will be no extra costs involved.
Viki.W wrote:
Have you approached an IP yet? I managed to pay all my minimum payments by using other credit so I can understand how you've been juggling! You really need advice from an IP, they will explain everything to you. There are fees for an IVA but they will come out of the agreed monthly payment so there will be no extra costs involved.
I've made an initial contact with iva.co.uk but I haven't finished considering my options yet. I was concerned by the prospect of getting a bill for thousands as the price of accepting my "business".
Thanks, all this has been useful. One last question - why am I showing 21 posts when I've only posted about six times? Is this an identity theft thing?? [:0]
Your IP is generally remunerated by the creditors - who have to agree the level of charges proposed as of course do you in agreeing to accept the IVA proposal drafted for you. These days most IP firms will charge a similar fee, given that this has been much standardised over the last year or so.
If you know that you cannot continue to make your payments on an ongoing contractual basis, without borrowing more money that you will not eventually be able to repay, it is probably time to take professional advice from an insolvency practitioner. Initial advice will not cost you anything, and could be the best hour you actually spend finding out what options are actually available to you.
pda93, why don't you give Melanie a call? Melanie is my IP and her and her team are great. My IVA was accepted a couple of weeks ago. There will be no upfront fees that are non refundable either.
We seem to be having a bit of a problem with new forum members showing more posts, don't worry, it will be sorted soon, I'm sure. X
Viki.W wrote:
pda93, why don't you give Melanie a call? Melanie is my IP and her and her team are great. My IVA was accepted a couple of weeks ago. There will be no upfront fees that are non refundable either.
We seem to be having a bit of a problem with new forum members showing more posts, don't worry, it will be sorted soon, I'm sure. X
It's not a problem, unless somebody is posting pornographic images under my name or something similar...
I will take your advice and call Melanie over the next day or two. I was considering writing to all my creditors this month and asking them for a payment holiday but am not sure whether this would be preferable to just reducing their payments to a token one. What would be a reasonable token payment - £10? £50?
I also need to open a new bank account before I can get anything moving as my own bank is one of my creditors, complete with (virtually used up) o/d facility. Any advice on this please anyone?
Somebody advised me that I should open an account with a bank which isn't one of my creditors. But what's the score if my new bank merges with one of my creditors, or is taken over, during the IVA period?
Everyone has been a bit worried about this lately. If you are in an IVA then it won't be a problem but I've no idea if you're only in the early stages. Someone more in the know will advise you. X
Hi pda and welcome from me too.
Glad the post numbers are wrong I kept thinking I was missing posts.
If you should decide to make token payments it is better to pay pro rata,if you say £1.00 for every £100 owed , (or some variation of the same) that way you would be showing all the creditors the same treatment as such, None would get more benefit than another.
I too echo Melanie would be a good place to get some advice on a way forward, get advice on all the solutions avaliable, that way you can make an informed decision on the best way forward for you personally. We have interlocking iva's and they took about 6 weeks from first phone call to approval.
Keep posting and all the best.
Give Melanie a call and she and her team will go through all your options with you.
You should then be able to make the right decision based on that information.
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
