Should I just carry on not paying? Any advice?

[donna.c]

Morgan Stanley have been on the phone today demanding a payment. My IVA has been re-proposed after it failed last time. I stated that my IP had said to not make payments, but all he kept repeating was that as I'm not in an IVA at the moment I wouldn't be trreating them preferentially if I paid them. He said the default notice is on its way and if I don't make a payment they'll demand full settlement before the end of April. I tried to give him the IP telephone number but he said he wasn't interested as the IVA hadn't gone through yet. Should I just carry on not paying? Any advice?

[kezza]

No just wait and see what happens at your next meeting, you shouldn't really do anything until then. I had a default notice like that while I was waiting, i'm sure a real expert will be on to put your mind at rest

[lesley]

I had a letter like that the other day. My mint loan they have withdrawn the agreement and want £9500 by 24th April. They know the situation my meeting is on Thursday if not approved I will be bankrupt by then. It's a worry but I won't be paying them anything. They will wait like the rest of my creditors.

[MelanieGiles]

Hi donna and welcome to the forum

Sometimes a simple token payment to the creditors can stop this sort of telephone call which is understandably upsetting for you. As I assume that you are not paying anything to your creditors at the moment, but do have some disposable income whilst your second IVA is in preparation, it is not unreasonable for the creditors to expect to receive something. However you must make sure that all creditors receive an even payment based upon the level of their debts.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Skippy]

I had a couple of default notices while I was waiting for my IVA to be set up and all I did was send them to my IP. I didn't make any token payments, and I must admit I had a little smile when I got the letters demanding full payment - I don't know where they thought I was going to get it from!

Onwards and upwards!!!

[freelili]

I agree that very small token payments could be made by the debtor on an agreed regular date but very often the IP says do not pay them.

If I had this type of call I wouldnt pay, I think it encourages this type of harrassment. These people can really make you feel like a low down nothing and they have the upper hand because you owe the money and feel ashamed. I know its not personal and they get paid for doing this, I just do not agree with their tactics. They do not care what you are trying to do and are not interested in listening. They are out to scare, threaten and intimidate. I just do not agree with telephone bullying and kicking someone when they are down. There is no question of us not wanting to pay, we cant pay and there should be no reason to verbally 'slap' it out of us when we are trying.

My house was like an explosion in a default letter factory, I was really scared at first. Its just a formal way of saying you have broken the aggreement, peppered with potential THREATS and possible ACTION.

LILY

I asked God for a solution and have to live with his reply.

[Donna]

Thanks Everyone, you've put my mind at rest. Just had MBNA on the phone to discuss ways of "helping" me. Told her I'm at work and would call her later... won't my break time at work be fun today! [;)]

[jamesfalla]

Hi Donna

As you will have read from all the posts here, it is very normal to get threatening letters and calls from your creditors demanding payments. As Melanie says, if you can afford to make a token payment (£5 / £10) then this will not hurt. However, really if you make a token payment to one, you should do it for all. Otherwise you are giving one creditor preferential treatment.

James Falla

Expert in IVA, Bankruptcy and informal Debt Management solutions for over 10 years.

For more information visit www.jamesfalla.com and visit my blog at: http://jamesfalla.blogs.iva.co.uk

[Hunter1]

I too have had loads of letters, calls, threats etc.

I sent them all to my IP yesterday - about 30 letters in all. Sure they'll appeciate it!!

Seriously though - I wa advised by my IP not to pay anyone at all and send everthing to them.

I'm ignoring most phone calls now too - still get caught out occassionally and have put the phone down on them a couple of times when they won't listen.

[Janey]

I had my IVA approved earlier this month and make my first payment on the first of April - hope this isn't a sign of things to come. Anyway I started the IVA process in December 2006. My first creditors meeting was held in early February and adjourned on a further two occassions until it was rejected because of HSBC. All the time I continued to pay my Debt Management Plan with Payplan which was £484 per month. Should I have actually paid this, at no time did anyone tell me to discontinue payments. My IVA was also through Payplan and was accepted at 40p in the pound and I will make payment of £395 per month. It's so confusing everybody seems to do thing so differently.

[iva_squirrel]

Good evening,

When you are completing an Income & Expenditure Statement, and you have worked out how much you need to live on, you could to distribute some of your disposable income over between your creditors to stop the phone calls.

However, you must make sure that all creditors receive an even token payment based upon the level of their debts.

Kind regards,


Julia

For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[tracy.h]

Hi iva squirrel
DONT NO IF YOU HAVE READ MY POSTS BUT AM A LITTLE CONCERNED I HAVE MADE TOKEN PAYMENTS TO EACH OF MY 11 CREDITORS OF £40 ONLY BECAUSE I FELT AFTER 6 MONTHS OF ADVICE FROM IP NOT TO PAY THEY WOULD START PUTTING CHARGEING ORDERS AND SUCH ON MY PROPERTY,IF YOU HAVNT READ ALL OF MY POSTS THEN THIS WOULD BE COMPLECATED TO EXPLAIN,I DONT REALLY UNDERSTAND IM JUST TRYING TO BIDE TIME UNTIL I HAVE SORTED OUT MY COMPLEX SITUATION.
I CAN AFFORD THESE PAYMENTS UNTIL I HAVE REACHED A DESISCION REGARDING MY SITUATION,AND AN OUTCOME WITH FORMER IP.
I JUST FEEL IT IS BETTER TO MAKE THIS GESTURE THAN UPSET THEM EVEN MORE.YOUR ADVICE WOULD BE VERY WELCOME

[Adam Davies]

Hi
This is another grey area regarding IVAs.
Some IPs advise you to stop paying your creditors and others advise to make token payments.
I think the way forward is to discuss it with your IP and whatever you agree to stick to it,i;e pay nothing regardless of the calls or pay pro rata to each creditor each month.
Its one or the other and stick to it
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[tracy.h]

thanks andy its nice to see your picture so we no who is giveing all this sound advice,and also to say well done i think you make a greatspokesperson for this site

[Adam Davies]

Much appreciated Tracy
Thanks

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp