Cleardebt proposal, worried about court action by First Direct

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1


User avatar
Posts: 2
Joined: Tue May 04, 2010 3:54 pm

Post by tigs » Sun Aug 22, 2010 3:25 pm
Am having IVA proposal put together - made enquiry 3 months ago. Taking longer as I have to go for a ' lump sum' IVA of £10,000 as over next 5 years circumstances mean my salary will decrease so little/ no disposable income.
I am worried as I have had 2 defaults on personal loans from First Direct saying if I don't pay by August 24th ( tuesday) they will do oen of 3 things- includes a debt collector calling, takigng me to court for full amount.Its this latter one that is my worry.

Sent all correspondence to IP- rang Fri but proposal isnt ready yet ( staff hols). Its a different sort of arrangment to standard IVA. Am waiting for their bank details ( Cleardebt) before I can pay money in). The creditors meeting won't be arranged till this is paid in.
I am worried about this court action and fact they may take me to court to repay full amount. This is why I kep checking on progress of IVA as I want creditors meeting set up asap. How will this creditors action impact on IVA and will they do this before creditors meeting can be arranged?.This is my real worry. It has taken longer than regular IVA being set up as intitially the 5 year option was being explored so creditors have been waiting nearly 3 months now for news of IVA. Am very worried.

Adam Davies

User avatar
Posts: 14596
Joined: Thu Mar 29, 2007 12:21 pm

Post by Adam Davies » Sun Aug 22, 2010 6:19 pm
The letters from First Direct are standard, do not be too concerned.
As long as you keep Clear debt in the loop you will be ok, an IVA will overide any court action if it does get to that point.
Surprised that you have to pay the funds to Cleardebt rather than just show proof, I wonder if this is normal practice ?
Andam Davies


User avatar
Industry Expert
Posts: 3104
Joined: Fri Nov 23, 2007 7:22 pm

Post by size5 » Mon Aug 23, 2010 8:48 am
With "lump sum" IVA's we do ask that the money is there in a client account before the creditors meeting, with the proviso that it will be returned, unmolested, if the proposal is rejected.

It is the only circumstance in which we do ask for payment prior to meeting.

Cert DR
23+ years in debt advice
I do not post for anyone other than myself

Follow my tweets at


User avatar
Posts: 156
Joined: Wed Jun 23, 2010 4:43 pm

Post by St75 » Tue Aug 24, 2010 11:05 am
Don't worry. I had two court dates whilst my IVA was being set up. But the IVA now supersedes the two CCJs as Andy points out above.

Started lump sum IVA in Aug 2010 - received certificate of completion April 2011, thanks to Melanie & team
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”