don't want bailiffs before i get the iva sorted

[kmv]

Hi,
I'm preparing the documents to send to debt free direct to apply for an iva. The thing is it's come to the point where I'm not going to have enough money to pay my cardit card minimum payments. I pay by direct debit and am going to cancel them or else get charges from my bank. My question being, do I tell my card companies that I am cancelling my direct debits and can only make a token payment by cheque/debit card or do i just cancel the direct debit, pay a token payment by cheque and just not phone the card companies?. I know it would be polite but I don't want them to send bailiffs before i get the iva sorted. help!

[carlmcmullen]

DFD should write to your creditors to advise they are proposing an IVA. At this point your creditors would normally allow time for the IP to perpare the proposal.

To get the IVA approved normally takes about 6 - 8 weeks, during this time you will get default notices as you are proposing an IVA you have defaulted on the terms, so this is normal.

You also receive calls but if you tell your creditors you are proposing an IVA they should hold calls (however not all do) if the calls continue then contact DFD who will speak to them on your behalf and try and get the calls stopped.

As far as baliffs they would need to have CCJ in place send a court baliff, which takes time and your IVA should be approved by this point.

Your creditors may write to you and state they will be sending 'a local representive' these are not baliffs they are simply somebody to remind you that you havent paid !! and are normally idle threats that are not followed through.

You need to keep in touch with DFD who can support you along the way.

Carl

[Jo Rolland]

If you are going ahead now with the initial documentation for an IVA and no court action has already been commenced by a creditor, bailiffs won't suddenly appear at your door.

In the first instance once you stop paying your creditors, their own collections departments will be in contact with you, once most of these are aware that an IVA is being prepared, the account will be passed to their Insolvency department. Where this does not happen, once the account has defaulted which would be after 3 months, the account would then be passed to a Debt Collection Agency or perhaps sold on to a different company. If after this time County Court proceedings are commenced by a creditor, from now to when there would be a possibility of a County Court bailiff visiting you would be between 4-5 months, during which time you would hopefully have an IVA in place.

I would add that when we are dealing with any proposals for clients, we do not advise them to stop paying their creditors and advise them that should a creditor ask for a token payment during this period that they do try to make a payment no matter how small, as nothing is guaranteed and should the proposal fail or an IVA not be possible and the creditors have not received any type of payment whatsoever, they may be on the brink of commencing legal action for which you would have no protection.

[depressed]

hi ,so if a creditor takes you to court during an iva proposal ,say its taking longer to set up than usual the courts could automaticly send out bailiffs to recover the debt ? or do they give you a ccj in terms of making regular repayments on the debt ,then if you fail to keep up with repayments go back to court to reinforce the ccj with bailiffs ? i've been told different versions of events and would be interested how this usually works ,thankyou .

[MelanieGiles]

If you make the payments under a CCJ as set by the Court, then you will not be visited by a bailiff.

[depressed]

hi melaine ,sorry to appear thick here but just to clarify if i was taken to court the court would'nt give bailiffs the right to come and remove items from our family home as a first instance then ?
i was just wondering if sometimes the courts just instead of arranging a repayment order send in bailiffs straight away .