Dealing with creditors

[Martha07]

HI there,
I was just wondering if anyvody else out there is currently in the same position as me. I have just returned all my paperwork to clearstart with the intention of proposing an IVA and am struggling to deal with my creditors. We have just allowed our first loan (beneficial finance £14000) to default and have yet to hear from them. The next will be HSBC and I'm really nervous about letting them all default as I'm scared what will happen, especially if the IVA is refused and I'll have a build up of defaulted payments to pay!!
Arghhhhhhhh!!!!!

[aguise]

Hi again Martha
I am not at the same point as you but can well remember being there. We were also up to date with payments until we decided on an iva. If the creditors ring just tell that you are unable to make a payment as you are having financial difficulties and you are at present seeking to resove the situation through an iva, refer them to your company and that is all the information you need to give. Just be strong and dont be upset by any who are aggressive or asy you have to pay or just pay a pound and we wont call you. I found they all varied, but only one of 17 was harassing, some never called at all.. Also if they ring make sure the log it on their screen so you are not called again that day. Dont worry we are all here if you need a moan or some support.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Martha07]

Thanks Ang,
I am just sp worried that our proposal will be rejected then our creditors will try and bankrupt us because we haven't paid for so long.

[aguise]

Martha I doubt it would be in their interests to bankrupt you. Use this time to save a bit of backup money ready for your contingency fund, when hopefully your iva is approved. Once your proposal is done and signed it wont be too long before the meeting. all your feelings are so normal, not nice, but usual at this point. Just keep telling yourself a few weeks and hopefully all will be sorted and the stress will alleviate.{ big word for me and I expect spelt wrong)lol

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[Martha07]

No, I think it's spelt right. Where do they stand with bankrupting me if they reject my IVA and I request a DMP?

[aguise]

It would be much better for them if you went to a dmp, in bankrupcy they may get little or nothing, so very doubtful many would want to pay more money to do this. My proposal stated that in an iva they would get 32p in the pond back and in bankrupcy 0.1p. Try to stop worrying, focus on your iva and stay positive, get your proposal back after studying and understanding it all, and you wont have tpoo long to go from there.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[iva.com]

Hi Martha,

Your IVA application should only take 6-8 weeks from start to finish so it is very unlikely that any of your creditors would start bankruptcy proceedings in that time. If you advise them that you are proposing an IVA they will at least know why your payments haven't been made.

Your IP is unlikely to put you forward for an IVA unless they believe that it is the best solution for you and that it is likely to be successful.

If your IVA application is rejected then creditors would much rather see you go into a DMP than bankrupting you as they would be likely to gain a better return from a DMP.

Good luck with your application and try not to worry too much. Please let us know how you get on.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

[stoney]

Hi Martha

We have applied for an IVA using Melanies team and have received our proposal. This has all taken place just prior and over the Christmas period. We havent had too much bother from our Creditors, however we have in the last couple of weeks or so started to receive Default Notices and have passed them onto Melanies team. I was alarmed on Monday to receive a phone call from a Debt Collection agency regarding our Egg debt. We also got a letter from them yesterday saying pay up or else basically. I posted on here and Melanie replied straight away to say not to worry as our meeting should be fairly quick to happen. I have emailed the debt coll co. and told them the situation and hopefully they'll leave us alone a bit longer. The phone calls are a bit tedious but just be polite and explain whats going on. The worst people we dealt with were Goldfish. All the others were ok on the whole. Once our meeting takes place and hopefully our proposal accepted I will be so relieved. Its a hard time but keep plodding on.

Best wishes x

[rachellxx39]

Hi , We used Clearstart and had our ivas approved on 7th Jan 2008. I am still having a few problems with creditors , Letters and phone calls.Its only just this week that it has started to slow down. I fully understand how nervous and stressed you can get waiting for your creditors meeting and it is a terrible time will it or wont it get approved. I had some wonderful advice and support from this site and it helped me get through.Clearstart have been really good with us during our process.Good Luck .

[rachellxx39]

Also i didnt pay any of my creditors while waiting for my iva.I only paid my county court judgement.I just told the other creditors that i was with Clearstart and they were putting together an iva proposal.Hope this helps.

[nataliejanew]

Hi Martha!

I am in the same position... I posted my proposal back to Clearstart and they received this on Wednesday, I am waiting to hear from them as they will be telling me when the meeting is with my creditors!

I still haven't cancelled my direct debits to my creditors, I am still wary incase my IVA fails, I don't want to go Bankrupt so trying to keep these up to date right up until my IVA has (hopefully) been accepted...

Its a scary thought just stopping paying them...

[Adam Davies]

Hi
It is always a difficult time and a strange feeling when you stop paying your creditors especially when you have spent the best part of a year juggling money about to pay your debts.
Creditors have to distinguish between debtors who can't pay[yourselves] and those that won't pay and that is difficult so you can understand them chasing for a payment.
Just stick to your guns[IPs advice] and politely but firmly inform them that you are taking professional advice and are in the process of proposing an IVA.Many call centre staff will tell you that it won't be accepted or that you will still have to pay the debt after the IVA etc etc but just ignore them and repeat yourself.
There is no easy way to stop these calls and letters,you just have to accept that it is going to happen.The plus side is that nearly all calls will stop once your IVA is proposed and those that continue will dry up shortly afterwards
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[emma_t]

Hi Martha07

My iva was accepted in November last year so am not in the same position as you, but I can remember it all to well.
It is so difficult to deal with all the letters and calls, don't know if you are like me but I had lots of creditors[:I] so had so many calls.
As Andy says be polite but firm and explain you are taking professional advice and cannot make any payment, at this pint they asked why I was in this position and I just explained that I had lost my second job suddenly and was in trouble. Some used scare tactics and thretened all sorts but just keep repeating yourself until they accept what you say. Being fair I had some creditors which were polite and accepted what I was saying and would ring once a week to see how I was going along and how much longet it would be. I also recieved a few default notices when they got wind I was going to try for an iva but if this happens to you don't panic (like I did) but just send them to Clearstart so they know.
This forum was a great support for me and I don't know how I would have coped without all the help and advice I recieved.
Also a good thing to remember is that the majority of iva's proposed are accepted (over 80%)[:)] so if you have put forward your best offer you should be fine.
Stay strong and look after yourself
Good Luck
Emma x

Hi nataliejanew

How are you still able to pay all your creditors?
I would be wary about paying the full payments every month, as would they not think ' what's the problem, whydoes this person need an iva if they can maintain payments'?

I would either stop or make token payments, whatever clearstart have advised you to do.
Good luck
Emma x

[nataliejanew]

Hi Emma,

I spoke to Clearstart about this, I have struggled (majorly) this month to pay everything, I called American express (my main creditor) and asked them if it was possible if I could pay less than my minimum payment this month.. If I had paid in full then I wouldn't have had a penny left for the rest of the month.. As for one of my other creditors (Halifax) I actually work for them and I am very wary about missing payments to them, so I have always paid these regardless of my situation.

When I called Clearstart and told them I found this forum and read that most people cancel their direct debits as soon as they start with IVA proceedings they said I can cancel mine if I wish but would be better to keep them going (if I can - or arrange to pay less each month) and not to mention I’m looking to take and IVA as they may try and talk me out of it..

At the end of the month when I have paid all my direct debits I don’t have a penny left and have to ask my parents for help (they don't know I’m going ahead with this, let alone how much debt I'm im..)

I am scared to cancel my payments fully incase my IVA rejects, but obviously I’m already behind on my payment to American Express because I can’t even make the minimum payment this month.

The member of staff I have been dealing with at Clearstart advised that my creditors meeting date and details have been sent in the post so I should receive them tomorrow..

I hope it’s not rejected on the basis that they think I can afford the payments?! I'm very worried now...

Sorry for such a long post
Natalie xx

[emma_t]

Sorry Natalie, my intention was not to worry you at all, and you obviously can't afford the payments or would not be proposing an iva...

i was just wondering how you were managing to pay everyone, as I know I could not have done that. i was using credit to pay for credit which was not in creditors interest anyway.
If clearstart know this and said its ok then believe them they are the experts.

I was petrified that my proposal would be rejected as, although my proposal was done very quickly, i was in such a mess by then I could not see any other way than bankruptcy. In reality I would have been back to square one and would have to look at all the other options including dmp.

Hopefully you will get your creditors meeting date soon.
I am so sorry if I worried you by my comment, sometimes I do put my foot in it and I shouldn't as know how stressful this time is for you and as I said I am sure clearstart would not advise you this is ok if it is not.
Sorry for rambling
Good luck
Emma x