Most insolvency practitioners will ask you for the first payment to be made prior to the IVA being accepted, but all firms probably have their own procedures. In my practice we write to creditors straight away, as we believe there is a need to get the ball rolling first and get creditors to independently verify the amounts due to them - this saves an awful lot of time in reconciling claims once the IVA is in place.
Once we have met with our client (either on the telephone or face to face if clients would prefer), we then draw up the proposals and send them for signature, at which time we ask for a first payment as a gesture of commitment to ourselves and the creditors. This money is fully refunded in the unlikely event that we do not get the IVA accepted, but your chosen IP might have other policies in his/her practice.
I would also have asked you to open a new bank account, but only if your existing account is held with a bank to whom you also have debts.
Regards, Melanie Giles, Insolvency Practitioner
