Should I make an upfront payment for my IVA?

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jellycat

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Post by jellycat » Wed Mar 04, 2020 2:39 pm
Hi,
I new to this & would be greatful if someone could give me a little advice, I have spoken to Credit fix & have started the ball rolling in that they have taken the case on & will be passing my details onto the IP to draft my paperwork etc but after coming off the phone to them I am a little concerned as to why they have taken my card details to take the first months payment & my first months council tax payment upfront at the end of March, I will then need to pay the council direct from April. They have said that the creditors meeting would most likely be in around six weeks, I do have some council tax arrears from this year but I'm thinking the upfront payment isn't quite right 🤔

kallis3

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Post by kallis3 » Wed Mar 04, 2020 2:56 pm
I would speak to one or two more companies as CF don't have good reviews on here at the moment. I don't know why they would want your council tax payment up front.
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.
http://kallis3.blogs.iva.co.uk

jellycat

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Post by jellycat » Wed Mar 04, 2020 3:21 pm
Hi,
Thank you I did think it was a bit strange I will order a new bank card etc so the can't take payment!

kallis3

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Post by kallis3 » Wed Mar 04, 2020 3:29 pm
Good idea!
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.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Mar 04, 2020 4:24 pm
CF, along with a few others like to have the first expected payment to hand so the ball can start rolling right away. You do not have to give them this and, as long as you make the first payment within 28 days of the meeting, all will be well.

The council tas thing is because of the timing. Usually, these days, Council Tax for the year you enter an IVA, is included in the IVA as a debt ( which, technically it is, being actually due in full in April each year, but, usually spread out over the next 10 months. So, for the time you are not paying CT, it increases your disposable income, which gets added to the IVA payment. Next financial year you will be given an expense allowance to pay it yourself ---- as there will likely be the one payment this financial year they are treating it seperately, rather than increasing the IVA payment for one month only.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

jellycat

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Post by jellycat » Wed Mar 04, 2020 8:31 pm
I get the upfront first payment although not sure I'm happy about that but my final two council tax payments from this year are actually going to be added as arrears in my iva, the council split the payment into 12 rather than 10 so I am little confused as to why Credit fix are asking me to pay them 1 months council tax payment to them. I am going to speak to a couple of other companies as its sounds as if Creditfix don't have a good record l😏
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