Hi just wanted a bit of advice. I had a DMP with Kensington. To cut a long story short was not happy with their services and was told about Payplan so am currently looking into starting an IVA. I was advised the only way to cancel my DMP with Kensington was to cancel my debit card (as this was how they were taking their monthly payments). I have done this but am worried that this month my creditors wont have received any funds and wont until my IVA begins? Was advised to offer creditors something however at the moment I have nothing to offer. All advice would be welcome as I feel that I am srowning and do not know where to turn. Thanks
Hi nicmc, Most of us could not manage to pay our creditors before the IVA was approved so don't worry. The fact you are taking steps to address the problem is good and please don't feel guilty.
Don't panic though if they do keep bothering you. I was getting over 20 calls a day when sorting the IVA. Still didn't make any payments from the end of March until the IVA was approved on 21st June though.
It feels so daunting when you are not completely sure of the process and is nice to know that there are people you can get advice from. I have signed my form for playpan to act on my behalf and have collated and sent back the majority of the paperwork they require. So basically from my salary this month I should try and put aside some funds. Nicola
This money will build up a nice little contingency fund for you prior to the start of your IVA.
You will get calls from your creditors though as soon as you stop paying. I would suggest that if you have any online accounts with them that you go on there and remove any contact numbers they have for you. That way you should only get letters.
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
Do you have to have a contingency fund available for when IVA starts - if so how much. As I owe my grandparents £500 that I would like to pay them before I start IVA process.
You don't have to have a contingency fund, most of us stop paying just to build one up and also to make sure we have money for the first payment as some companies do like that before the meeting.
Not sure about your grandparents - they are a creditor and should not be treated preferentially.
I'm sure one of the experts will advise.
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 understand that you should not treat creditors preferentially but surely until I have entered into an IVA they are not yet a creditor? I have only just begun gathering my infoirmation to enter an IVA.
I am not including them in as creditors as they will just say pay me back when you can. However I feel like I should repay them something and this may be the only time I can offer them something.
I'm honestly not sure. Hopefully someone else can come on and help.
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 pay your grandparents using the dmp money. You may need to borrow from them again during the iva!
Yes it is treating creditors preferentially but its what I would do. My Nan died with me still due to pay her money back that she loaned me! I hate that.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
