Pre IVA options

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Adam_7985
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by Adam_7985 » Tue Jun 13, 2017 8:53 pm
Hi, I am in the process of picking the right company to handle my IVA for me, I have never missed a payment on any of my debts but I am really struggling now till I can get this sorted, is it possible to ask some of my creditors to accept a lower payment for a month or two whilst I sort the IVA out?
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kallis3
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by kallis3 » Tue Jun 13, 2017 9:30 pm
If you are going to do an IVA, I personally would not make any payments - instead build up a contingency fund. If you have online accounts delete phone numbers from them. Get the ball rolling soon.
Adam_7985
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Joined: Sun Jun 11, 2017 7:28 pm
by Adam_7985 » Tue Jun 13, 2017 9:52 pm
Someone advised me to open a new bank account and get all income paid into that, should I just cancel all my direct debits and see how long it takes till they start to contact me?
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kallis3
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by kallis3 » Wed Jun 14, 2017 7:29 am
If your bank is a creditor you need to move. Co-op comes recommended with it's cashminder account but it can only be done via phone call into a branch.

Don't touch HSBC or First Direct as they don't like IVA's and, even if not a creditor they have been known to close accounts
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Foggy
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by Foggy » Wed Jun 14, 2017 7:54 am
You only need open a new bank account if your banl is linked to a creditor, or is a creditor itself. Additionally First Direct and HSBC do not like IVA's and tend to close accounts.

I would not cancel DD's etc until you have decided what you are doing. Whilst a couple of missed months allows you to build a small emergency fund, more than that will give the creditors time to enforce payment, should they so wish, before you can get the protection of an IVA in place.
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Lisa Thomas
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by Lisa Thomas » Wed Jun 14, 2017 9:05 am
If you are going for an IVA you can stop paying your creditors.

Make sure you have explored all options, not just an IVA to ensure it is the right option for you.

I've made a quick video about bank accounts in Bankruptcy, which applies to IVAs too here:

https://www.youtube.com/edit?o=U&video_id=nAXh_0vWt58

It is recommended you open up a basic bank account with a difference bank to fall back on.
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Michael Peoples
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by Michael Peoples » Thu Jun 15, 2017 10:14 am
If you cannot afford the payments you stop paying creditors as you are only increasing your debts. Whether the IVA is the correct option or bankruptcy or a DMP it is irrelevant as in all cases contractual payments to creditors cease.

Nationwide seem to have good accounts for those entering IVAs if they are not one of your creditors.
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