Do I have to be in arrears with payment

[joanne.lt]

I am considering an IVA, however I have so far managed to avoid defaulting on any payments that I have to make but wont be able to avoid it this month. Do I have to be in arrears with payment before I can enter into an IVA and also I have a gym membership which is fixed for 15 months would I be forced to cancel this?

[kallis3]

Hi, and welcome to the forum.

You don't have to be in arrears before considering an IVA. It will make no difference either way.

Not sure about the gym membership, this will have to be sorted with your IP.

Visit www.iva.com for a list of companies and reviews and give one or two a ring for free and impartial advice.

[MelanieGiles]

To present an IVA to creditors you have to demonstrate that you are insolvent - ie not in a position to continue paying your debts as they fall due.

Creditors generally do not like gym memberships unless there is evidence from your doctor that this is required for medical reasons.

[Jan01]

I like a lot of people on the forum didn't miss any payments although some were sometimes late, however I could only pay the minimum amount and was having to rely on credit cards for day to day living.

Good luck

Jan

[plasticdaft]

If you could make savings from other allowances then your gym membership could probably carry on,but as Mel says,not many Ip's will see a gym membership as something you couldnt do without.

[Julie]

Hi Joanne,

Are there charges if you cancel the gym membership?

Make sure you discuss this with the IP you chose, but I agree with plasticdaft you could carry it on, if you make savings elsewhere.

If we can help anymore, just ask away[;)]

[Shining]

Hi Joanne, when I first entered into an IVA enquiry I had no arrears on anything but knew that within a month or two I would be unable to pay my creditors.

Hope it goes well for you x