www.iva.co.uk

Our creditors meeting is not until the 14th and we are with Melanies team. When we sent the paperwork back we were asked to send the first IVA payment but I cant remember reading anywhere (have to check paperwork) that the cheque would be cashed prior to the meeting. Does anyone else know about this? Must admit from reading other posts thought that the money was held until after the voting
but I maybe wrong.

You will find companies operate in differnt ways and there is no rule to say that you have to pay before your IVA is approved.

The T&C's normally state that the first payment must be made within 28 days of approval, unless otherwise stated in your proposal.

However it is not unusual to make a payment prior to your creditors meeting as this shows your creditors you are commited and can afford the IVA payments.

I would normally suggest that the sooner you can afford to make payments the better any payments post meeting will count towards your 60 payments.

You will have to check your engagement letter which you signed right a the beginning, because again differnt companies operate differently, but if for some reason your IVA fails at meeting, normally any money paid will be refunded in full.

Thank you Carl for your reply, it was just a bit of a surprise when I went to online banking and saw the cheque had gone out of our account today. Will check the paperwork.

I know Melanie has said before on the forum that she likes to have a first payment "on the table" to show commitment to your creditors so i wouldnt worry too much.

mrs skint

Thanks Mrs Skint, wasn't expecting it to go through until after the meeting date in just over a weeks time thats all. Thank goodness for online banking.!

I suppose in a sense it looks better to have the CASH there instead of a cheque. Hubby was with a different IP and they did the exact same.

mrs skint

I read alot of Melianes post, and she does state she asks for this, i think its a kind of a way, showing good will and you are serious about an IVA towards creditors

Yes, this is all about commitment to the IVA process. As soon as your creditors vote YES ( very likely as you are with Melanie’s team ) Melanie makes your first payment immediately. Straight away you are on the road to a debt free life [:)]

Hi, I'm with Melanies team too and paid my first instalment and cheque is cashed. Oh Maxdebt you've made me feel so much better today saying 'very likely as you are with Melanie’s team' I'm having a low moment!

Different strokes for different folks, I never take payments on IVA proposals until after the meeting but instead work out a pro rata payment for clients to give directly to the creditors. Shows the same level of commitment/affordability but I don't think it is ethical to take a payment for a service that you may not be able to provide.
Without calling into question anyone else, the reason some firms take fees from clients is that if a meeting fails then they can pass the client to their own DMP company, the client being virtually locked in by way of already having forked out 1 or 2 payments.
At least the way I do it gives the client a choice and has not cost them anything to try for an IVA.

I see your point size5. I can't speak for other IVA providers but I do know that Melanie offers an immediate refund if the proposal is rejected. Be assured Stoney that Melanie and her team have a very very high success rate [:)]

Hi
Size,wouldn't that money be better used towards the IVA ? Surely pro rata payments prior to an IVA proposal are just gobbled up by the late payment charges etc ?
I also think that people who are committed to an IVA solution should use the period leading upto he creditors meeting to stop making payments to their creditors and get themselves upto date with utility bills,council tax etc etc
Regards

Hi Maxdebt and thanks for your post. I do feel very confident with Melanies team and after your comments am hopeful for the 14th. Maybe Cupid will cast his IVA arrow our way and be lucky for us.! I have nothing but praise for her team and would recommend them to anyone looking for advice. Heres hoping !!

I would always refer anyone to Melanie's team too. I also know that a full refund will be given if IVA is not accepted as Melanie and I have spoken about this previously. Andy I totally agree with you and that is what I did, got everything up to date whilst waiting for my IVA date and paid my first instalment into IVA last month and have almost accumulated my 2nd months payment, assuming the IVA is a 'yes' on Friday, I'll have my 2nd payment or I will by the end of the month. In effect been living within budget of IVA for two months now. I realise early days and a big learning curve re budgeting is about to happen but I know 110% this is the way forward for me.

I understand your point Andy, but in my experience it is much harder to get an IVA to succeed if you tell a client to stop paying creditors completely.
Also, my experience is that approx 80 to 90% of people that I speak to are not in arrears, so using the period to catch up on utilities is simply not relevant.
I speak to many people who have tried for an IVA and been rejected and almost to a man they say that they have been advised to make token payments or no payments at all.
My belief is that clients should be encouraged to pay what they can up to the point when a creditors meeting has been held. If that means the creditors get more money back I can find no argument with that.