Do we contact the card companies

[sarah.j]

Hi, I am in the process of an IVA along with my partner.(Applications Submitted beginning of MAy) We have 1 joint debt totalling 25k, and other debts of our own. We have tried to get a personal loan to consolidate all debts to no avail as my partner is self employed.We haven't yet heard from the IVA company to let us know what is going on. In the mean time we are really struggling to meet the repayments on all the credit cards, and had to miss paying a couple last month because of this. What we have had to do now, and have done in the past is pay 1 credit card off with another etc etc. The card companies have started making contact with us now to tell us to pay. I just need to know really how to go about making these payments until the outcome of the IVA is known. Do we contact the card companies and explain that we can't afford to pay them as much as they want or just not pay them at all? Any advice greatly appriciated. Thanks

[aguise]

Hi Sarah
Your company will tell you what to do about payments if you are in the process of an iva. Some people are told to stop payments and others are told to make token payments. The best person to ask is the company dealing with your case. If they do ring tell them that you are in the process of proposing an iva and give them your ref no and Ip to contact. Dont be bullied into making payments if you read some of the other posts aabout telephone calls it should help. You dont need to ring them.
Again the best thing is ring your company and ask them what they want you to do.
Hope all goes well.

Ang

[MelanieGiles]

Hi Sarah

What guidance (if any) has your IP company given you with regard to managing the creditors in the meantime? They should be dealing with this for you, and by now ought to have written to your creditors confirming the situation. It seems odd that you have been with them since early May and they have not contacted you at all.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[sarah.j]

Thanks for that.The company have just sent us the facts about IVA's, asked us to send all documents, payslips, income and bank statements etc and write a little about how we got into debt in the first place. We have had no guidance about managing the creditors in the meantime. I am a bit concerned that if we didn't pay them it would influence the creditors when the proposal was put forward. As far as I know, I have not recieved a ref number or an IP contact. We did recive a letter last week for my partner to contact someone at the company but when we phoned, he was on leave. We are trying him again today.That is about as far as we have come. I have not heard anything about my proposal although they did say that when all information was received, they would then draft a proposal to send to the creditors, after we have seen it and given our approval. As all this is new to us, we are not sure about the time scale of it all. All we do know is that it could be refused.
Sarah

[MelanieGiles]

Hi Sarah

You ought to be able to phone your IP at any time if you have queries like this - we are there to hand hold you through all of the procedures and provide support in dealing with your creditors.

The IP is correct in saying that they cannot really proceed until they have all the information from you, so make sure that you send them all the documents they have asked for as soon as possible. In the meantime, I suggest that you continue to advise your creditors that you are in the process of proposing an IVA to them. There is no harm in making token payments in the meantime.

This may stop the ongoing barrage of calls and letters, and is unlikely to affect the eventual outcome of the IVA at all.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Mmmmmmmmmmm 6 Weeks down the line and you haven,t heard from your IVA company.Is this the first company that you contacted ?
You should have had a detailed phone call from someone within the IVa company and they should have explained the ins and outs fully to you.
It may be worth you getting a second opinion from another IVA provider and I would recommend the ones that post on this site.
I personally believe that once you commit to an IVA you should stop paying all creditors,however you need to take the advice of your IP and stick to it,regardless of the amount of calls that you have.
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[sarah.j]

We actually applied with clearstart, who I must say where very good. We looked at the IVA last year and because of it's implications, we sat down and discussed everything including how much washing powder we could afford.They took all details of our income and expenditure, and advised us that some of these expenditure figures would have to be reduced. After we reduced/cancelled some policys we had, we then submitted all details to them. They then sent us a letter around 10/05/07 stating that they couldn't help us as my partner is self employed. It is this new company that we haven't heard from, only to say that they will be dealing with our case, and a letter last week to my partner to ask him to contact someone within the company, he did this and as I say, this bloke was actually on leave till today. My partner is going to give him a call again. As per the advice below, I have asked him to mention the situation with the creditors, eg, do we continue to pay, make token payments or cease to pay. That is if this bloke is in the office!!

[Adam Davies]

Hi
I think that an IP has to have a meeting with you because your husband is self employed.
If you have no luck I would consider using another company and once they agree to take on your case I would then stop paying any creditors or only make token payments[depending on your IPs advice]
Regards
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[finebridge]

Hi Sarah j,

I am in agreement with the advice from Melanie & Andy. You certainly need a meeting with your IP to discuss further.

We would certainly advise once your IVA proposal is 'on track' then there is no need to continue payments.

Kind Regards

Nicola.


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[sonyse2t5]

you could make token payments....say upto a third of what you normally pay per month,to each creditors-speak to collections dept and say you are making token payments.....and sorting out a plan.

The debt will increase so do what you can to reduce it in arrears, remember that not all iva are guaranteered to succeed