payments whilst applying for IVA

[baz36]

Hi, just in process of applying for IVA, got a consultant coming tomorrow. Me and my partner owe £55000 on unsecured debt, mainly credit cards. I was just wondering if anyone knew answers to the following, talk about major stressing out!!!!

1) What do we do about payment that are due NOW, when we cant afford the mimimum payments with us now going through this IVA application./

2) Also we both have overdrafts in our banks that are never paid, what do the banks usually do about these when approached by our IVA company?

Suppose we may feel alot better once we have spoke to our consultant tomorrow, just really scared and this is the 1st time weve actually sat down and added up all our debt etc, and it hits you like a brick doesnt it.

[freelili]

Hi and welcome

Normally you are advised to open a new basic bank account without any credit/overdraft facilities attached. Sooner rather than later, make sure the new bank is not related to the old in any way.

Your IP will advise you to either stop paying creditors or make token payments only, without favouring any creditor. Be sure to check out IVA companies, dont just go with the first 'sympathetic ear' some people have had bad experiences. (its easy to jump in with both feet as it offers a way out, many people feel ashamed, DONT, your IP will earn well out of it and is working for YOU).

Make sure that you include everything in your outgoings ie Dental/prescriptions, five years is a long time on a budget, just be realistic in your expenses as an unrealistic IVA will lead to failure.

Your overdrafts will become part of your IVA, be aware of the right of offset with your current bank. Be prepared for creditor onslaught when you begin to miss payments, they phone, write and threaten, but have no other power in the begining, they are paid to try to stress a payment out of you.

Its a stressful time but talking to others in the same situation will help you and their experiences will help you to make the right decisions. By reading other posts you will learn a lot. There are also some fantastic experts here, who will help you.

I am not an expert, just another person trying to face my debts. I agree that it hits hard, when you realise the extent of it all. You are already on the road to a brighter future.

Good luck in advance

LILY