what payments do you make to creditors awaiting the big meeting?

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Johng79
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by Johng79 » Thu Apr 27, 2017 8:03 am
Guys,

Just wondering once it reaches stage of signing proposal, what sort of payments should be made to creditors? Should they be weighted in respect of who i owe most to?

Also curious as to whther you get bombarded by creditors straight after proposal received, even if the minimum payments arent due to few weeks afterwards.

Thanks in advance guys
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Foggy
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by Foggy » Thu Apr 27, 2017 8:28 am
You make one payment to your IP --- he / she will distribute it between creditors on a pro rata basis. The payment you make is, basically, your disposable income, i.e Total income less agreed expenses (essential bills and food etc). You should have nio contact with your creditors thereafter (apart from the odd statement, maybe) once the IVA has settled into their systems.
Johng79
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by Johng79 » Thu Apr 27, 2017 8:40 am
No i mean between the signing of proposal and the creditor meeting, as obviously minimum payments, direct debit for loans due.
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Foggy
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by Foggy » Thu Apr 27, 2017 8:58 am
Johng79 wrote:
No i mean between the signing of proposal and the creditor meeting, as obviously minimum payments, direct debit for loans due.


Ah, yes .. apologies ....

Most of us made no payments at all, although some made token payments of, say a tenner to each creditor. It makes little difference to the phone calls / letters you might get and no difference to the outcome. Making no payments will allow you to put aside a small contingency fund (which you WILL need at some stage).

When you get phone calls just inform them you are entering an IVA and give the IP details -- many creditors will put the account on hold, some will still ring back to be told the same again. A few will spout nonsense about having tio make a payment (they are on commission from monies collected! ). Many of these calls are from call centres who don't even seem to know what an IVA is ! So, no discussion ... "name, rank & serial number" only.
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Lisa Thomas
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by Lisa Thomas » Thu Apr 27, 2017 9:08 am
You can stop paying once you know you are going to go ahead with proposing an IVA.
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kallis3
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by kallis3 » Thu Apr 27, 2017 9:52 am
I made none at all.
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Michael Peoples
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by Michael Peoples » Thu Apr 27, 2017 10:03 am
There is no point making any payments as it will not affect your IVA. If you have a little spare cash keep it as a small contingency for when the IVA starts.
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moira717
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by moira717 » Thu Apr 27, 2017 11:58 am
Hi, I worried a lot about this whilst waiting for my creditors meeting. In the end I decided to stop payments, it made no difference to creditor calls as they call even if you are making reduced payments. I just told them what date my creditors meeting was. After creditors meeting, I had couple of calls but I just told them my iva had been accepted. Apart from default notices being sent everything else dwindled. I would hold on to your money, it will make no difference. Good luck
Johng79
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by Johng79 » Thu Apr 27, 2017 1:45 pm
think iv made mistake of paying them then, but guess il try n scrape through another month & submit proposal later in may when pay goes in new account. Suppose it will probably take a week or 2 for me to agree proposal anyway nevermind creditor meetings especially with bank hols in may.
Johng79
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by Johng79 » Thu Apr 27, 2017 2:31 pm
That actually creates another question. Roughly how long after creditor meeting IF approved, until first iva payment is required?
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Foggy
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by Foggy » Thu Apr 27, 2017 2:42 pm
Johng79 wrote:
That actually creates another question. Roughly how long after creditor meeting IF approved, until first iva payment is required?


Some IP's like the first payment in hand at the creditors meeting, so to start the clock ticking down right away, but you generally have up to 28 days to make the payment.
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Foggy
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by Foggy » Thu Apr 27, 2017 2:45 pm
Johng79 wrote:
think iv made mistake of paying them then, but guess il try n scrape through another month & submit proposal later in may when pay goes in new account. Suppose it will probably take a week or 2 for me to agree proposal anyway nevermind creditor meetings especially with bank hols in may.


Once you return the signed proposal you will have a couple of weeks until the meeting.
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moira717
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by moira717 » Thu Apr 27, 2017 5:09 pm
Think it depends who you are with re when first payment made. With step change it is 2 months, others from what I have heard give you a month and as foggy said some take first payment asap
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Lisa Thomas
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by Lisa Thomas » Tue May 02, 2017 1:47 pm
Check your proposal documents - the answer is in there. Standard tends to be 28 days from meeting.
Johng79
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by Johng79 » Tue May 02, 2017 2:25 pm
Thanks Lisa. Just waiting on meeting date and then i can sort out borrowing a sick bucket for the day lol. #beingthrifty
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