Preparing for IVA

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Seaxe
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by Seaxe » Fri Aug 24, 2018 10:20 pm
We're in the process of preparing to submit an IVA application. We don't want to find ourselves here but circumstances changed unexpectedly. We've moved all ongoing DD's to come from our new safe bank account. Should I cancel the DD's for the creditors we're not paying next month or just leave them in place. Cancelling a DD will trigger alerts and phone calls etc? They'll be alerted to IVA when IP sends out letters next week. What is recommended practice? TIA.
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UpToMyNeckInIt
Posts: 607
by UpToMyNeckInIt » Sat Aug 25, 2018 12:07 am
I recall going through the same thought process just over 6-Years ago.

Always check with your IP for the best advice, but personally, I cancelled any direct debit / standing order to my potential IVA creditors, as soon as I realised the IVA was viable and not least because I did not have the money

I'm afraid the next bit is uncomfortable: Until your IVA is up and running, and maybe for a couple of Months after, you are likely to get demand letters and maybe phone calls. But just explain, firmly but politely, that you have entered/are entering an IVA, and refer them to your IP, quoting your IVA reference number and you should be fine.

Having come out the other end of a completed IVA, I can tell you that it is hard, but worth it in the end, with north of £30k of debt written off in my case.

Good luck.
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abbiesmum2003
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by abbiesmum2003 » Sat Aug 25, 2018 12:40 am
I agree with previous post.
Move your DD which will continue and stop other DD. Save the money from credit card payments etc.
You may get calls and letters but just give them info about iva and out phone down. I ignored calls to br honest and saved letters. We wrote to all our loans/credit card suppliers just saying due to finsncial difficulties we have started iva proceedings, gave accountnumbers and iva number.
its not a nice time as some can be pushy but you dont need to explain anything to a call handler.
They give up evdntually.
Wehave finished our 5 years and waiting for a meeting next week to say its completed. This place is a lifesaver for info and support.
Best wishes for your iva journey.
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Mrs_Brown
Posts: 110
by Mrs_Brown » Sat Aug 25, 2018 5:25 am
I was advised to make token payments by pro rataing my iva payment across the creditors and paying that amount. I wrote to them to tell them. Only one person didn't have bank account transfer payment info on their statement so I wrote and requested it. I set my phone to divert all phone calls and the only ones who did try to call me were actually First Direct. Everyone else responded in writing, most seemed to agree a short amount of time on a reduced payment without hassle.

In hindsight after reading the forum, I wish I hadn't bothered to pay anything as I would have had saved £550 over the 6weeks period from the phone call til my meeting! I paid at the start of the month when my meeting was 17th and agreed.

Kallis advised on a recent post to log into online banking and remove your phone number, which is a great idea.
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Foggy
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by Foggy » Sat Aug 25, 2018 7:30 am
I can only repeat all of the above. Some of the creditors who call (usually a collections centre in some far flung part of the world) will not even know what an IVA is! They will try to get a payment --- just do not get into any discussion. They cannot influence the outcome. One of my creditors ( the largest, in fact) actually rang me up on the day of my meeting to wish me luck!).
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kallis3
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by kallis3 » Sat Aug 25, 2018 8:37 am
I never made any payments to mine at all. If you have any online banking I would suggest going in and removing contact numbers so they cannot phone you
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Radish
Posts: 343
by Radish » Sun Aug 26, 2018 12:24 pm
If your not paying that will at least give you time to prepare for your IVA? I would try to get them to put a note on your file? Not sure about a token payment - this would surely be dead money as this amount you pay up until the commencement of the IVA wont have any reflection on your monthly payments. You will end up paying the same anyway?
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