Payments while setting up IVA

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Post by Engineer » Sun Aug 15, 2010 7:25 am

While setting up an IVA should I try and maintain payments? Some I manage but others I send token payments.

Should I tell my creditcard companys that I'm applying for IVA?



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Post by Lou74 » Sun Aug 15, 2010 7:38 am
Hi Engineer, and welcome!
You should seek advice from your chosen I.P on this. I was told though, that whatever you decide to do, you should not favour one creditor over another regarding payments, and treat them all the same.
Some people make token payments of say, £1 whilst setting up the Iva, others prefer not to pay and use this to build up a small contingency fund. I was also told that it doesn't make much difference to the outcome if you pay the creditors or not, and it's up to you what you feel most comfortable with.
I hope this helps


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Post by kallis3 » Sun Aug 15, 2010 8:18 am
Hi Michael,

Lou is correct, you should either pay them all the minimum payments, or all token amounts, or nothing at all. You must not favour some and not others.

Your IP will write to your creditors but if you wish to as well that's fine.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.


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Post by Cakie » Sun Aug 15, 2010 12:18 pm
Hi Michael
I did make a very small token payment to all creditors and was very upfront about what was going on. I did find that I didn't get huge numbers of phone calls and letters; I may have just been lucky but it could well have been because I kept them informed. Having said that I am still getting the odd letter when my IVA was approved on 28th July!

Your IP will advise you but at least it puts your creditors in the picture. I think we have slightly different experiences - take advice from your IP and do what you feel comfortable with.

Good luck.
taking my head out the sand and starting over...


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Post by Goosed » Sun Aug 15, 2010 1:13 pm
Hi Michael.
I made no payments at all to any of my creditors. I wrote to them all and phoned them all when I decided I was proposing an IVA to explain the situation.
Three creditors still phoned regularly, one only a couple of times and the rest made no attempt at phone contact. All continued to send statements and default notices.
Barclaycard were by far the most prolific pursuers.
My IVA was accepted on August 10th, so I guess that backs up that it makes no difference to the outcome of your proposal if you pay your creditors nothing.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".

Eric Cantona


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Post by MelanieGiles » Sun Aug 15, 2010 1:25 pm
There is no harm in making token payments whilst your IVA is in preparation if this makes you feel better - but there is no evidence that this stops the calls/letters provides you with a better result on your IVA voting.
Regards, Melanie Giles, Insolvency Practitioner
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