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Johng79
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by Johng79 » Sun Mar 12, 2017 8:37 am
Hi guys,

Really just 2 questions.

Owe around 50k (head buried in sand for years). Part of that is a 15k loan 5 months ago which im paying on time. Should i hold off for a bit on applying for iva as really worried about any sort of fraud allegations?

Secondly, as soon as i sign the proposal, what do u do vis a vis your bills etc during the time awaiting creditor meeting? Iv read about bank accounts being frozen etc, so would that mean i get bombarded with calls and letters due to being unable to pay bills?

Thanks in advance

J
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Andy.75
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by Andy.75 » Sun Mar 12, 2017 10:17 am
Hi
I owed 42k debt and had a 13k loan that was less than a year old. When i made the phone call i talked everything through with the insolvency practitioner and was advised to cancel all direct debits because they were fully confident that it would all go through. I changed bank accounts and opened one with a bank that i didnt owe any money to. Its far easier to open an account before going into an Iva than once in one. I got a Santander 123 account and still have it today. It all sounds really daunting but it was the best thing i ever did
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Foggy
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by Foggy » Sun Mar 12, 2017 10:29 am
Hi and welcome. Well done for lifting your head out of the sand :-)

Many of us continued to borrow right up until the end as a matter of survival at that stage. If you can afford to carry on for a few months without resorting to further credit you are not technically insolvent. I would have a word with a couple of companies to explore options.

In the run up to entering an IVA you do need to keep paying the essential bills (power, water, phone, rent / mortgage and any secured loans). Credit debts are usually paid as best you can until you know an IVA is for you. Now, there are divided opinions in the industry on what to do while waiting for the acceptance Most of us ceased paying the credit agreements completely. This allows the building of a modest emergency fund (which WILL be needed at some stage). Stepchange and a few others advise making reduced payments in the interim. Common consensus is that it makes no difference to the outcome. But, if you stop payments. it is imperative that you squirrel the money away and not squitter it on last minute luxuries --- if the IVA is rejected you might want to play catch up.

Unless you keep up full payments you WILL get the phone calls. Most of these can be handled easily by telling them you are going into an IVA and giving them the details (name, rank & serial number --- no other discussion). Many firms will them put a 30 day hold on the account ( a few won't know what an IVA is -- you are dealing with a call centre on the other side of the world ). Most of mine left me alone after the first call. The AA rang me back to wish me luck and I had a couple of calls from a young lady in Mumbai with a very alluring accent .... I miss her :-(
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Foggy
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by Foggy » Sun Mar 12, 2017 10:33 am
Oh yes .. bank accounts .... They are not normally frozen, unless you are with HSBC or First Direct and there have been a few instances with Nat West. But, if your bank is connected to any of your creditors or you are including an overdraft in the IVA ( if you have one you must include it) then you need to open a lifeboat account right away. Many of us used Co-operative Bank's Cashminder accounts.

Also, harking back to creditor phone calls .... if you have any accounts which are operated online, go in and remove phone numbers -- especially work numbers.
Johng79
Posts: 110
Joined: Sun Mar 12, 2017 8:12 am
by Johng79 » Sun Mar 12, 2017 10:55 am
Foggy wrote:
Oh yes .. bank accounts .... They are not normally frozen, unless you are with HSBC or First Direct and there have been a few instances with Nat West. But, if your bank is connected to any of your creditors or you are including an overdraft in the IVA ( if you have one you must include it) then you need to open a lifeboat account right away. Many of us used Co-operative Bank's Cashminder accounts.

Also, harking back to creditor phone calls .... if you have any accounts which are operated online, go in and remove phone numbers -- especially work numbers.


I actually set up a santander basic account the other day, so that's sorted. Just concerned about an Iva so soon after big loan. One company told me probably best to pay for at least 6 months before completing the IVA paperwork.

So it's probably best just before submitting paperwork, change work pay details to the new bank account, so I can handle living essential bills and have start of emergency funds?
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Foggy
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by Foggy » Sun Mar 12, 2017 10:59 am
Sounds like a plan !

Have a chat with a couple of firms too -- they do all operate slightly differently and some are more "creditor centric" than others ! Have a good wander around the forum to see who we have used and what our experiences were.
Johng79
Posts: 110
Joined: Sun Mar 12, 2017 8:12 am
by Johng79 » Sun Mar 12, 2017 11:47 am
Andy.75 wrote:
Hi
I owed 42k debt and had a 13k loan that was less than a year old. When i made the phone call i talked everything through with the insolvency practitioner and was advised to cancel all direct debits because they were fully confident that it would all go through. I changed bank accounts and opened one with a bank that i didnt owe any money to. Its far easier to open an account before going into an Iva than once in one. I got a Santander 123 account and still have it today. It all sounds really daunting but it was the best thing i ever did


Oh cheers for that, was just really worried about being so soon after a loan. Its great to be able to speak to someone who has been in similar scenario.
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Michael Peoples
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by Michael Peoples » Mon Mar 13, 2017 9:30 am
I have seen IVAs accepted where there have been no repayments to loans so five months is not an issue at all. Some firms do have different attitudes but it is a bit of a nonsense to say you should a month. If you cannot pay your debts now you need help irrespective of when you last borrowed.

Speak to independent firms as well as the bank funded charities and go with whoever makes you feel most comfortable.
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