Token Payment confusion.

Get expert opinion. This is the place for new questions to be posted.
61 posts Page 4 of 5
 
 

kallis3

User avatar
Forum Expert
Posts: 76056
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Thu Sep 30, 2010 1:21 pm
Agree totally with Michael - you still have time to pick another firm.
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
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Thu Sep 30, 2010 1:32 pm
This does seem to have been dragging on and your creditors do not even know that you are entering an IVA. You should get on to your IP and demand to know what is going on. Your creditors seem to think that you are entering a debt management plan and are rightly seeking pro rata payments. You are paying out money to creditors that you cannot afford and you seem to have no idea when or if you are going to get a proposal.

In an earlier post you said your payments would be around £175 but if the CCCSVA are now telling you that you have to pay £20 to ten creditors they must have increased your surplus to £200. Has anyone evn discussed this with you?
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Thu Sep 30, 2010 3:58 pm
Hi.

Thanks for the replies.

The I&E form we originally sent off to our creditors was from our meeting with CAB. Our I&E was worked out and we had 175.00 'spare' with which to make payments. The woman we saw was really helpful but the DMP she reccomended to us was going to take 22 years to complete. Which we thought was a bit OTT.

We then went to CCCS, having no idea that an IVA would be suitable or not, CCCS recommended an IVA and handed our case over to CCCSVA.

Up to this point my wife had been lurking on MoneySavingExpert and the vibe was 'token payments' was the way to go until something was in place.

The I&E with CCCSVA came to 220.00 spare - because of their stringent guidelines - and now they are saying that since it is spare we should be paying it to our creditors.

Sorry about the confusion.
Last edited by Imhotep on Thu Sep 30, 2010 4:00 pm, edited 1 time in total.
 
 

kallis3

User avatar
Forum Expert
Posts: 76056
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Thu Sep 30, 2010 4:24 pm
You don't need to pay it, regardless of what CCCS say. Save this money - you may well need it as contingency, and of course you will need to make your first payment if approved.
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
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Thu Sep 30, 2010 8:22 pm
Well, just spoke to the Mrs and she has already paid her token payments for this month :(

So do I pay 20 quid or 10 to my creditors?

I appreciate your input Jan but I'd rather tow the line with my IPs as we haven't even started the IVA yet and am concerned that this may cause some animosity.

If I'd have just gone with the original I&E set out by CAB (175.00 spare) rather than accidentally invoking the CCCSVA I&A (220.00) - which we had to adjust our figures so they would fit their guidelines - we would have been a bit better off and able to start to build a contingency fund.
Last edited by Imhotep on Thu Sep 30, 2010 8:24 pm, edited 1 time in total.
 
 

kallis3

User avatar
Forum Expert
Posts: 76056
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Thu Sep 30, 2010 8:34 pm
It is down to you Imhotep, but personally I wouldn't be paying it and I would be checking out one or two other companies.
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
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Thu Sep 30, 2010 8:42 pm
I feel like it in all honesty.

I just feel that we are pretty much committed now as we have provided all the required information and the weeks have been ticking by.

The good news is that we have received our redemption certificate from Barclays for the secured loan, we have our mileage statement to justify our fuel expenses and a letter outlining our wishes regarding my wife's shares.* It is all going off to them in the morning :)

*That reminds me. She has around 500.00 in shares that was left to her by her parents. She would like to keep them. We have been told that we may be required to pay an additional two payments (fair enough). But if they increase in value would we be required to sell them?
Last edited by Imhotep on Thu Sep 30, 2010 8:43 pm, edited 1 time in total.
 
 

Shining

User avatar
Posts: 27020
Joined: Thu Sep 20, 2007 8:57 am
Location:

Post by Shining » Thu Sep 30, 2010 8:47 pm
Hi Imhotep, I think an IVA is a personal thing and one you'll deal with as you go along the way and so long as you feel comfortable, token payments or not, I hope you get the outcome you need.

I would guess if the shares increase in value it would be payable into the IVA but that's what that is....a guess. One of our other posters/professionals will be able to clarify as I'm sure will your IP.

All the best, get that stuff off tomorrow and hopefully it won't be long before you'll be letting us know your creditors meeting date.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

leaKybrain

User avatar
Posts: 1102
Joined: Tue Apr 01, 2008 10:12 pm
Location: United Kingdom

Post by leaKybrain » Thu Sep 30, 2010 10:42 pm
Hi, i think its unfair that you are being given no choice about the token payments. right from the start of me being on this forum,and the advice I've received from elsewhere I knew that we wouldn't be making payments in October as we would need the contingency and to make the first payment of the iva. How do they expect you to be able to do this is you are paying £20 to everyone. I understand you not wanting to upset the apple cart, but are your iva people wanting to see proof of your token payments, how do they no if you haven't paid any.
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Fri Oct 01, 2010 1:29 am
The shares need to be declared as assets, and I would think that creditors would expect them to be sold. Why not get a family member to come up with the money?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Fri Oct 01, 2010 8:26 am
Hi leaKybrain.

I'm guessing they expect us to magically have a spare 440.00 that month.

I've no idea how they would find out about token payments. Likewise when I was on the telephone to the Co-Op and they were insisting on pro-rata payments. I said that several of our creditors were fine with the 10.00 token payments for the time being (only two are asking for pro-rata, Co-Op and NatWest). I asked the Co-Op what was I supposed to do? Pay some pro-rata and some 10.00? They told me that they would not accept that. I asked them how would they know what we were paying other creditors?

Hi Melanie.

We have declared the shares as assets. We expected them to have to be sold. But CCCSVA said we may be able to keep them in exchange for a couple of additional payments. Now I'm confused to when they will be valued. Sounds like it will be at the start. But what will happen if they go up in value before the IVA is complete? More extra payments? Also, what if they plummet? Will we get a refund over what they were valued at in the start? :)
 
 

Pennyless

User avatar
Posts: 1271
Joined: Sat Sep 05, 2009 4:30 pm
Location: United Kingdom

Post by Pennyless » Fri Oct 01, 2010 8:53 am
Imhotep I also had a large amount of shares (of NIL value) when entering my IVA which I had to assign over to the creditors. Unfortunately the Company has only just went into administration and therfore the likelyhood of creditors seeing any return is practically NIL.

In any event had the shares been of some value, however, insufficient to pay a substantial amount of my debt, I would of viewed them as a worthy price to pay in order to satisfy my creditors.

Good luck.
I came into this world with nothing and still have most of it left!
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Fri Oct 01, 2010 9:18 am
I agree. But, as I have said, these are of sentimental value to my wife as they were left to her when her parents passed away. Actually, they are split between her and her brother in New Zealand.

If they were just something we had accumulated over the years I'm sure she would have no problem giving them up.
 
 

Michael Peoples

User avatar
Industry Expert
Posts: 15189
Joined: Mon Nov 03, 2008 12:36 pm
Location:

Post by Michael Peoples » Fri Oct 01, 2010 9:44 am
If creditors agree to exlude the shares in return for an equivalent amount of extra payments, any increases or decreases in value would be irrelevant.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Imhotep

User avatar
Posts: 382
Joined: Sun Aug 01, 2010 11:36 pm
Location: United Kingdom

Post by Imhotep » Fri Oct 01, 2010 9:51 am
Thanks Michael. That will please the Mrs :)
61 posts Page 4 of 5
Return to “Ask IVA Forum and Industry experts”