When do you stop paying your creditors?

[drowning-mummy]

You havent confused Kazzy, just helped me understand something.
Looks like we are starting out our journies at the same time. Will be good to keep in contact and help each other.

[elizabethr]

We set up our new accounts a few weeks ago at lloyds TSB. They gave me a print out with an account number and it was active from that point in time. Changed all dds and salary pay in that week.

[Viki.W]

Ages ago when I worked in the bank we could only issue account numbers and sortcodes if the account had been accepted....hope it's the same these days, hope that helps.....if the info is correct! Viki X

[Kazzy E]

Hi Drowning-mummy, yes would be good to keep in touch, we commenced beginning of last week. I have been following your threads and your worries have been the same as mine. It is daunting to start off with, but with all the support on the forum, the stress is certainly relieved and everyone is really supportive and understanding. It certainly makes you realise that although you thought you were the only one with these problems, you certainly aren't. Keep posting, I am sure we can help each other. Kind Rgrds and keep your chin up. Kazzy x

[drowning-mummy]

Yes we set the ball rolling on friday, so are just a week behind.
Elizabeth, we went with Llyods TSB too. I checked today that the account is active when I set up internet banking and it is.

I also cancelled our direct debits, for our 2 loans and 2 credit cards. My heart was racing, but then I thought "whats the worst that can happen?" Nobody is going to put me in prison. If Melanies team are unable to help or we dont get our IVAs then I will just have to cough up somehow, albeit late and a fraction of what they want with penalties, I'm already in a mess so cant get much worse can it? I'm normally such a goody-two-shoes-by-the-book type of gal, so cancelling them terrified me!

[Martin2011]

Don't think you'll have any probs with the account...if you have the numbers its definitely agreed.... We set up accts with LTSB at the begining of the process and even explained that we had applied to enter an IVA and they were still fine with it....

Best of luck Kazzy and Drowning Mummy, I'm sure we'll all be offering you congrats when your IVA's are accepted soon.... and Congrats Ray, welcome to the 5 year trip to a debt free life!!!

Martin

[TheMatrix]

You done the right thing cancelling them. I know how that felt when I cancelled mine and cut my cards up.

If and when your creditors start ringing up for payment don't make any 'token' payments either.

Just from my own experiences it's probably best to change your number or take the phone off the hook to avoid all creditor contact while the iva is being set up too.

[kallis3]

I agree. We already had a second number (BT broadband talk) so could unplug the other number and not answer creditor calls.

We made no token payments, just wrote to them explaining our situation.

Just don't let the bullying get to you! You are on the right track and I am sure everything will turn out ok

[TheMatrix]

We sent a standard letter to every creditor giving them the authority to deal with the IP direct, so there was no real need for them to call me, but that just seemed to increase the number of calls I got.

They started asking for 'token payments' and on the advice of my IP told them no and to talk to my IP about the IVA I was in the process of arranging at the time.

Once it goes through though, by law the calls and hassle have to stop, so don't give in. Still might be worth either taking the phone off the hook or changing the number though

[kallis3]

I think once they get that standard letter they go into panic mode as they realise that they possible won't get back the full amount owed. By applying pressure it means that they might be able to meet their targets if they can talk someone into paying some money. Just refer them to your IVA application, politely tell them you can't pay anything and put the phone down - or don't answer it and then do a 1471 afterward in case it is someone you know.

[TheMatrix]

Agreed, but there are only so many times you can politely tell them you can't pay. I got called morning, noon and night by one creditor who just would not take no for an answer. Hence unplugging the phone.

[Kazzy E]

Wow, thanks guys, all great advice. I take on board what you say about the phone calls but do the creditors send people door knocking? There is only so much you can ignore without facing people I suppose. Kazzy

[TheMatrix]

Unlikely anyone will call in person, but I have heard through these forums that they do sometimes send threatening letters to do so.

If anyone did turn up remember it is your property they have no right of entry, and you do not have to open the door to them, and you can simply tell them to go away politely of cause, if they refuse call the police.

Above all stand your ground.

If a bailiff did call (Very unlikely) but if they did tell them you are in the process of a IVA and refuse them entry.

They have to be invited in, and will usually try all sorts of tricks to do so like make out they are there to help you sort everything out.

However, once invited in they can start making lists and marking items as their own and will come back later to collect them, this time however they are allowed to use force to enter the property.

[Kazzy E]

Thanks inaiva, no chance of me letting them in, but thanks for that. No, I just wondered that was all. Its so scary, the thought of cancelling all dd's then leaving yourself widely open for the onslaught of calls that are likely to start but will just have to deal with them as and when. I feel awful, because I have never missed the payments and it really goes against my principals but I have no choice to go through with the IVA. It just makes you feel so guilty, you feel like you are letting everyone down. I am sure I will feel better once the proposal has been set out and it gets put forward. Watch this space.... Kazzy x

[TheMatrix]

Yep, was in the same boat. Never missed a payment, but always on the edge. It does get better, honest.

Good Luck.