Default notice received before IVA meeting of creditors

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beverley191
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by beverley191 » Tue Oct 16, 2018 1:12 pm
Hi I am in the process of applying for an Iva. My proposal has been submitted and creditors meeting is on 24th October. I have received a letter from American express with a notice of default served under section 87(1). I have made the min payment to them this month so not in arrears. It says they will serve the notice in 14 days and could take me to court! I'm really nervous about this who situation. 14 days is after my creditors meeting however what happens if its declined or adjourned?
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Foggy
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by Foggy » Tue Oct 16, 2018 1:18 pm
Pass this to your IP who will deal with it for you.
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kallis3
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by kallis3 » Tue Oct 16, 2018 1:24 pm
American Express have been told about your application which is why you have received this letter. As Foggy says - pass it on to your IP company.

Are they a major creditor?
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beverley191
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by beverley191 » Tue Oct 16, 2018 2:29 pm
Thanks I have emailed it over. They are actually my smallest debtor £700 and I made a min payment this month so I haven't yet missed a payment. I guess it's all part of the process I'm just super nervous about the whole think. Thanks for your help
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kallis3
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by kallis3 » Tue Oct 16, 2018 2:42 pm
I'm sure you will be fine.
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Foggy
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by Foggy » Tue Oct 16, 2018 2:48 pm
beverley191 wrote:
Thanks I have emailed it over. They are actually my smallest debtor £700 and I made a min payment this month so I haven't yet missed a payment. I guess it's all part of the process I'm just super nervous about the whole think. Thanks for your help


A default is lodged when the relationship between debtor and creditor breaks down and declaring yourself insolvent is considered to be such a breakdown. During the course of youe IVA you want all of your creditors to default you, with a default date on or around the date the IVA starts --- this means that the defaulted accounts will drop off your credit files in 6 years, when the IVA does, so giving you a "clean" credit file.
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