So you will still have to make your first payment when your IVA is approved?
I take it that it won't be refunded if you are turned down?
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.
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I hardly think that Freeman Jones would not pay themselves until the IVA were concluded - but perhaps they mean not until the IVA is accepted by creditors which would be more likely.
My IVA company Debt Free Direct who are extremely good never asked for any up-front fees. I wouldnt recommend you pay anything at this stage. Let me know what happens I am more than happy to help on this.
As I understand it, a modification - 'Payments made to Nominee pre IVA' - is used by voting creditors, that ensures that any funds received by the IP before the creditors meeting takes place are entered in to the IVA in addition to the standard 60 contributions. If the IVA is not accepted, the funds paid prior to the meeting are then at the disposal of the IP, either to be returned, transferred to a debt management plan or kept as an admin fee if debt management is not aviable option.
MelanieGiles wrote:
I ask for the first payment when we get clients to sign the proposals prior to the creditors meeting. I personally feel that you are being asked for this at too early a stage, as they have not even reviewed your case thoroughly yet. If you are going to pay it, make sure it will be returned to you in the event that the IVA does not go forward.
Interesting this Melanie - we don't and in our opinion it allows a little leeway with our clients to have some extra funds available prior to starting the long hard slog of 5 years. Our clients payment starts within 30 days of creditors approval. Clients are very appreciative of this especially if they are struggling in any event at the time that they are first involved in setting up the IVA.
Last edited by David Mond on Sat Apr 04, 2009 6:59 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Payplan did ask us for the first payment, but as we had neither debit card or cheque book we couldn't. All the IP said after the meeting was that we had to pay within 30 days.
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
David - the fact that there was nothing to pay up front was a godsend. I had been paying creditors right up to the point when I had zero cash left. I was potless!
As soon as we were told that an IVA was a solution for us, we stopped paying our DMP so that we could build up a bit of a contingency fund and Barclaycard and Lombard Direct I hadn't paid for a couple of months anyway as I had no spare money.
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
I have continued to pay my DMP. It is with Abacus which I believe is part of the clear debt company that I am carrying out my iva with. Should I not be paying my DMP or is this still payable.
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
Our DMP was with a different company to Payplan, who the IVA is with. They told us to stop paying it, but had we have had it with them, we would have continued paying.
I presume that as your DMP is linked with Cleardebt that you should probably carry on paying it.
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
I would agree with that, but I shall probably be in the office for an hour or two later this afternoon, maybe around 2ish, so if you want to ring me then to discuss this directly then I will be happy to do so. If time beats me today then I will definitely be in tomorrow from around 1ish till around 3 30ish.
Regards.
Last edited by size5 on Sat Apr 04, 2009 12:19 pm, edited 1 time in total.
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Thanks for this size 5, I will try and call you tommorow. From memory though when I spoke to Ali I think he said to carry on paying but I might be wrong. The bit that really concerns me now is that my next payment is due on the 27th and if the creditors meeting is around the same time then I might also need to find some money for the first payment on the IVA
IVA.co.uk The best place for debt advice. Thanks to Melanie Giles, David Mond, David and J (Elv5) Kallis, Dand, Skippy, Andy Davie
If this is the case and your creditors meeting has been fixed - don't make any further payment into your DMP - wait for the IVA to kick in - 30 days later and you will have some respite!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
