To pay or not to pay?

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stmw
Posts: 24
by stmw » Mon Apr 09, 2018 9:28 pm
Hi!

Weve recently made a decision to go for an IVA and are currently awaiting all DD's to go over to new bank before signing the forms and sending back.

We have never missed a payment on any of our bills (luckily) however come November we will be paying our bills but not eating so thats why weve got to get this sorted ASAP.

Now my question is - we do our bills from the 22nd of each month (when husband gets paid) we have paid all creditors this month apart from 3 - HITACHI FINANCE, V12 FINANCE and Studio - express gifts. They are due to be paid on the 12th, 20th and 19th April. Should we pay? I feel like we should as we have paid all other creditors this month - but then I also think those creditors are small amounts that wouldnt even sway a vote :shock:

Hmmmm what to do?
Itsallouttherenow
Posts: 30
by Itsallouttherenow » Mon Apr 09, 2018 9:41 pm
Hi
It's difficult I know. We were in a similar situation and never missed any payments. But as soon as we decided an IVA was our best option we stopped paying them. We contacted them all to explain our situation and gave them our IPs contact details. We did this before we missed any payments. We have recieved the odd automated phone call and text message but most have left us alone whilst our IVA is being drafted.
I felt that being honest was our best option and followed advice previously read on here about stopping payments and using the money to build up an emergency fund.
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stmw
Posts: 24
by stmw » Mon Apr 09, 2018 10:30 pm
Thank you so much for your reply - I’m just concerned that if the IVA isn’t approved then we will have missed payments for nothing (if you get what I mean) not in a mean way to the creditors as I feel like absolute rubbish getting myself into a situation like this - I just don’t want to mess up anything and risk it not being accepted based on a missed payment. The amount to all of them is approx 160 so it’s money we could definitely do with but I feel bad enough going into the IVA :shock: ahhh I don’t know!! Thankyou!!
Itsallouttherenow
Posts: 30
by Itsallouttherenow » Mon Apr 09, 2018 10:50 pm
Totally understand! Our proposal is still being drafted and I am too concerned about what will happen if it's rejected. We have missed all payments for April now and could no way catch up if Our IVA isn't approved.
I have spent a lot of time reading others posts on here and have comfort in knowing that most I have read have stopped payments and their IVAs have been approved. I recommend searching 'missing payments' and reading some of the posts. They made me feel a lot better about our situation and comfort in knowing we are not alone.
What stage of the IVA are you at?
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J5453
Posts: 71
by J5453 » Tue Apr 10, 2018 4:01 am
Hi there,

What advice did your IP company give you whilst in the process? They should be offering you the best way to go forward in the meantime.

I initially went to the citizens advice bureau before approaching the IP company, who told me to offer a token payment of £1 to each company with a covering letter to keep them all in the loop as to my proposals to go into an Iva and also asking that they freeze interest. It was all from a letter template which i got from their web at the time.

When I had signed up to go ahead with the IVA proposal I stopped paying them on advice from Iva company so again not favouring any creditors against the other and going in neutral across the board. I was in a position where I couldn’t afford to live on basics, I left no facts of the matter out including what I had done to try and help myself as well as why the IVA would be my only option. It was accepted and I finished my last payment into the Iva last month, 6 years down the line.

Speak to your IP. Communication is really important in an IVA and chase them if you have to. This forum is worth its weight in gold but you must talk to your IP at every stage too.

Good luck on your IVA journey. You will get there like I have.
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Foggy
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by Foggy » Tue Apr 10, 2018 7:01 am
I, too, was one who had never missed a payment until I decided on the IVA. I then stopped paying anyone and saved a modest contingency fund (which was needed!). If you stop the payments, keep the money aside, then, if (IF) the IVA is rejected you can play catch up if needed.
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kallis3
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by kallis3 » Tue Apr 10, 2018 7:50 am
I was in arrears with all of mine and then stopped paying altogether whilst setting up our IVAs. Makes no difference to the vote.
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Mrs_Brown
Posts: 104
by Mrs_Brown » Tue Apr 10, 2018 12:15 pm
As soon as my IVA was at the drafting stage I wrote letters to all of the people I owed money making them a token payment based on percentage of how much I owed them vs what I had left over each month after my budget, advising I would pay by standing order. Then I set up all the payments, apart from one who never provided me their payment info despite me requesting it twice! I had letters back requesting my budget sheet which I supplied, but First Direct didn't want to accept anything unless I filled out lots more forms. I just tore them in half and never replied! By the time they followed up with a reminder I had had my IVA approved.

I knew my creditors meeting was coming up when I got paid on Oct 31st and still made my November payments, although looking back I wish I hadn't, that money would have been far nicer in my (independent, none debt related) account! And if the IVA hadn't gone through I could have still met payment deadlines. Hindsight is wonderful. I would now bank my money til the end of the month and make payments on latest possible day instead of paying everything on payday, although that takes a bit of organisation not to miss a date. I don't ever intend being in that situation again though!!
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stmw
Posts: 24
by stmw » Tue Apr 10, 2018 7:30 pm
Itsallouttherenow wrote:
Totally understand! Our proposal is still being drafted and I am too concerned about what will happen if it's rejected. We have missed all payments for April now and could no way catch up if Our IVA isn't approved.
I have spent a lot of time reading others posts on here and have comfort in knowing that most I have read have stopped payments and their IVAs have been approved. I recommend searching 'missing payments' and reading some of the posts. They made me feel a lot better about our situation and comfort in knowing we are not alone.
What stage of the IVA are you at?


Ours is being drafted too. I will search that tonight and have a good read - Thankyou! Well we are going with the plan that anything after the signed agreement (3rd April) we won’t pay - not feeling comfortable with it but if we are going to default by paying nothing or paying something I’d rather pay nothing and have some food this month!! Xxx
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stmw
Posts: 24
by stmw » Tue Apr 10, 2018 9:38 pm
J5453 wrote:
Hi there,

What advice did your IP company give you whilst in the process? They should be offering you the best way to go forward in the meantime.

I initially went to the citizens advice bureau before approaching the IP company, who told me to offer a token payment of £1 to each company with a covering letter to keep them all in the loop as to my proposals to go into an Iva and also asking that they freeze interest. It was all from a letter template which i got from their web at the time.

When I had signed up to go ahead with the IVA proposal I stopped paying them on advice from Iva company so again not favouring any creditors against the other and going in neutral across the board. I was in a position where I couldn’t afford to live on basics, I left no facts of the matter out including what I had done to try and help myself as well as why the IVA would be my only option. It was accepted and I finished my last payment into the Iva last month, 6 years down the line.

Speak to your IP. Communication is really important in an IVA and chase them if you have to. This forum is worth its weight in gold but you must talk to your IP at every stage too.

Good luck on your IVA journey. You will get there like I have.


Hi :) thanks for the reply!

I have contacted the company who advised its completely up to me and that at this point many people wouldn't be paying anything - i think its just the fear of receiving any letters with RED on them :lol: It said on the initial payment to continue making token payments to creditors - how much is too little or too much? Ive cancelled all Direct Debits so would need to do this online if I have to.

Ive been trying to contact my IP however they havent replied to emails initially sent with requested documentation or an email I sent this morning re: an update. Ive then phoned up but still havent been able to speak to them. The communication and information ive been getting from the people is great but I havent yet been able to speak to my IP directly, even though in the email it says to call or email :lol: must be a very busy man so its not a bother.

Thank you for your kind words! Im hoping everything goes through so so much so I can just buy food without worrying or panicking when its one of the kids friends birthdays as I have to take any gift/card money out of the food budget for that month! Ahhhh fingers crossed eh?! Awesome congratulations for completing your IVA - only way is up now!

x
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stmw
Posts: 24
by stmw » Tue Apr 10, 2018 9:40 pm
Foggy wrote:
I, too, was one who had never missed a payment until I decided on the IVA. I then stopped paying anyone and saved a modest contingency fund (which was needed!). If you stop the payments, keep the money aside, then, if (IF) the IVA is rejected you can play catch up if needed.


Thank you! Its nice to hear from someone like us in regards to payments etc. We are stopping any bill payments from the 3rd April when we signed the agreement - scary scary scary.

Should I send a letter to the creditors explaining what we are planning to do? This whole process has got me a bit baffled! Sorry for asking so many questions! x
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stmw
Posts: 24
by stmw » Tue Apr 10, 2018 9:42 pm
kallis3 wrote:
I was in arrears with all of mine and then stopped paying altogether whilst setting up our IVAs. Makes no difference to the vote.


Thankyou! Well these creditors only make up 6.8% of the debt so either way im hoping it wont make a difference :)
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stmw
Posts: 24
by stmw » Tue Apr 10, 2018 9:46 pm
Mrs_Brown wrote:
As soon as my IVA was at the drafting stage I wrote letters to all of the people I owed money making them a token payment based on percentage of how much I owed them vs what I had left over each month after my budget, advising I would pay by standing order. Then I set up all the payments, apart from one who never provided me their payment info despite me requesting it twice! I had letters back requesting my budget sheet which I supplied, but First Direct didn't want to accept anything unless I filled out lots more forms. I just tore them in half and never replied! By the time they followed up with a reminder I had had my IVA approved.

I knew my creditors meeting was coming up when I got paid on Oct 31st and still made my November payments, although looking back I wish I hadn't, that money would have been far nicer in my (independent, none debt related) account! And if the IVA hadn't gone through I could have still met payment deadlines. Hindsight is wonderful. I would now bank my money til the end of the month and make payments on latest possible day instead of paying everything on payday, although that takes a bit of organisation not to miss a date. I don't ever intend being in that situation again though!!


Thankyou for your reply :) weve decided to stop the payments and just put it aside just in case the IVA doesnt go through.

How often do IVAs not happen? I know they wouldnt put it forward unless they were pretty certain it was going to be accepted but what reasons are there normally for denial? I think thats going to be the worst part - waiting around to find out!! x
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kallis3
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by kallis3 » Wed Apr 11, 2018 7:27 am
Most go through - some want modifications and it is up to you whether you accept them or not. If one of your creditors is NRAM you will find they will ask for an extra year to be tagged on.
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stmw
Posts: 24
by stmw » Wed Apr 11, 2018 4:23 pm
kallis3 wrote:
Most go through - some want modifications and it is up to you whether you accept them or not. If one of your creditors is NRAM you will find they will ask for an extra year to be tagged on.


Right ok thankyou! - no I don’t have them luckily.

They’re drafting the proposal today x
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