www.iva.co.uk

Hi Everyone,
We are currently applying for an IVA proposal, hopefully we can get one sorted. As one of our creditors is our current bank (Halifax) we have taken the advice from other posters and applied for an account with the Co-op. We were accepted at the bank for a current account although it will still take a couple of days for the account to fully open. We were hoping to get our December wages paid into this account if it opens fully before the wage cut off. My main question is as we are using credit to pay our debts and getting deeper in debt should we think about holding back payments to build up a fund ready in the hope an IVA is accepted. This is probably the worst time of year to do this with Xmas coming and 3 young children but it's also the only way I can think of to get them a few gifts..........Worrying times ahead!!!!

Any advice would be welcome, please.

Paul.

A lot of posters stop paying their debts whilst sorting out their IVA. It gives you time to build up you first months payment, plus a little bit of contingency.

Be warned though, as soon as you stop paying, the phone calls and letters will start.

If your wages cannot be paid in before the new account opens fully, I would withdraw them so that you can pay them in to the new account as soon as possible, thereby stopping Halifax from taking money out to offset against your debt.

Hi Brickwall,

I stopped paying creditors as soon as I started the IVA process as making payments is throwing good after bad, you can make token payments but I personally think this a waste of time as there is no evidence of this helping an application.

I opened a coop account also & as soon as I had the details I had my wages paid into my new account, you need to do this asap as you need to build up a fund for when you start your IVA!

Best of luck Brickwall

Thanks Kallis and Fox,
I was'nt sure how quickly my creditors would react as I have'nt missed any payments yet, and my credit score can't be totally shot yet as the co-op offered me all kinds of accounts, including savings accounts. But would the Halifax get suspicious if I start transferring my essential Direct Debits and withdraw all available cash???

I was in the same position as yourself in that my credit score was fine as I was still managing to maintain my CC payments & I could have opened any account I wanted with Coop but chose the basic cashminder to take away all temptation!

As for your current account just get all available cash out asap, cancel all your direct debits & set them up again in your new account as soon as you have the details, they may get suspicious but who cares? the most important ithing is you are in the best position to carry through your IVA.

Barclays never said anything to us when we transferred everything, and they were one of my creditors (credit card).

I agree with Fox on fetching everything out and setting up new DD's.

Barclaycard called me three days after I missed my first payment, and were relentless afterwards.

Hi there

Thats what I did, I cicked off all my dd's to credit cards and loans etc, just paid the bills like elec and gas, phone etc. It was October when I first noticed my mess and Christmas was just round the corner. I used the non payments to fund a frugal but honest Chtistmas.

I wouldnt use anymore credit now, you will get deeper into with with the non payment charges but at least the old way is over and done with and your new life can start with a new Christmas and new year. Although its a new way of lige (well it sure as hell was for me, anyway) Its kind of liberating knowing how much (or how little) you have and sticking in the black.

Dont worry about tomorrow for now just concentrate on today, youre doing your best and thats all you can do. Most of us here have been there.

Good luck now.

We did not pay anyone as soon as we started the IVA route except for my CCJ as Grant Thornton advised us to pay that one.
As per my post we were accepted today. We both were in DMP's so we have been used to creditor hassle but we did not have too much.We had a lot when we first decided on the DMP a few years back especially MBNA.
This time round it has been Mercers on behalf of my Littlewoods Visa (Barclaycard). I can set my watch by them 8.10 am every morning.
Am looking forward to my call tomorrow though, but wondering if they will still want a token payment??[8D][8D]

They will want any payment they can get Karenanne but give them nothing. if you were to give mercers a token payment you would have to give all your other creditors a payment as well as you can't be seen to favour one creditor over another!

You can't make any token payments at all once the IVA has been approved.

Mercers phoned me the day my IVA was approved. I told them they couldn't phone me anymore or ask for money. She agreed with that - and then asked me for a payment! I just asked her what part of 'I'm in an IVA' didn't she understand! To be fair - they've not rung since.

Ahhh my brain has gone must be lack of alchohol[:(] of course you can't make token payments while in an IVA!!! I was getting my posters mixed up! think i will go for a run & clear my head[:)]

I'd remedy the loss of alcohol if I were you Fox! Forget the run.[:D][:D]

Can you be my fitness instructor please Jan?

Fox 84 I'd certainly follow jans advice[:p] its too cold and foggy for a run anyway!!

No problem - you need to give that right arm some exercise![:D]