Getting Worried...

[Diesel]

Hi All,

I am currently in the Drafting phase of an IVA application, however my creditors are really starting to put me under pressure now (Although some of them have been really understanding and helpful).

I received a letter this morning from Egg (Credit Card Collection Department). I have not paid my bill for the last 3 months, but they were made aware that I was seeking financial advice and then they were made aware that I was going through an application for an IVA. Egg have said that I need to provide them with the following information -
--A detailed breakdown of of my income and essential expenses
--A list of all my other debts including the contractual payments that I am required to make on them
--My proposal for reduced offers of repayment on a pro rata basis

The letter states that I need to provide this information in the next 14 days or I will be issued with a default notice and my account will be terminated and they may pass my account onto an external debt collection agency.

This is all starting to concern and worry me

Any idea what I should do?

Thanks

[nepensioner]

Hi
Please don't worry about this, it is all part of the process (I know easier said than done). Simply pass the letter quickly to your chosen IP and they will deal with it. The period that you are going through, for me was the most stressful but there is an end to it. Do stick with it and take courage, all will be well in the end

[kallis3]

Hi Diesel,

Don't worry, this is a standard letter. Your account will go to default anyway and they will probably pass the details on but most of them do that. You'll just get phone calls and letters from different people!

You don't need to provide them with anything. Let your IP company know about this letter so that they can possibly contact Egg for you.

You're getting there slowly. Just ignore these letters they are just trying to get you to pay money.

[ginger3232]

Hi Diesel

A little bit of moral support. The collecting an drafting part of the IVA is the worse part,because although it may only take a few weeks , it seems like months. And when you have people /companies threatening their worse, this does nothing nothing for the stress levels. The companies can be threatening but have to follow guidlines on debt recover, so they are limited in their action. You have done the right thing , you are dealing with your debt, to get it right for you,information has to be collected /drafted and put forward.

All i can say , is i wish when i was going through the IVA, we had a forum available, to offer advice /support or just to make me feel i was not the only one going through it.

[Foggy]

Diesel ... Egg are one of my creditors and asked for all of that info over the phone! I just gave them my IP details and said to contact them if they wanted to know. No idea if they did. Never heard any more ... well .. so far .....

[Broke of London]

Just pass the letter to your IP.

[kallis3]

If they phone you then just tell them you are going for an IVA and then put the phone down.

[stupidly broke]

ive had my IVA since march 2010 i still have one creditor that writes to me i got a letter today telling me how much i still owe and with a £10 charge for advising me of this, and now they have passed the account on to a collection agency even tho its been 10 months since my IVA was set up i don't even bother ringing them now i just forward the letters to my IP

[kallis3]

Your Ip should be contacting this creditor by now as you should not be getting these letters now.

[Broke of London]

It's farcical SB - they can charge you a million pounds for the letter if they like.

[St75]

Hi Diesel

I agree with nepensioner. The weeks leading up to your proposal are the most stressful.

They probably will issue a default, but the default notice simply lets you know that you are in breach of your credit agreement, and gives you at least 14 days to remedy the breach. (i.e. clear the arrears)

As you are going for an IVA I doubt you will be clearing the arrears, so the next step they take will be to notify you that they have terminated your agreement.

They can then start to take legal action, but this usually takes a few months.

So by the time they would get through all those stages, you your IVA proposal will most likely be draft and a creditors meeting called.

And in the unlikely event that it isn't ready yet and Egg take you to court, the only thing the court will do is make a ruling that you owe the debt, which will then be included in your IVA anyway.

I had two court cases (one loan was not paid for over a year, and a rates bill from a previous year). The creditors both got their rulings, so the only difference was that the creditors court costs were also included in the IVA.

So, please do not worry, you will probably have your IVA in place before any of the above might happen, but even if does it won't affect the outcome of your creditors meeting.

Regards
socleirigh

[kallis3]

If there is a court case threatened in the run up to the IVA then the IP can put a stop to this by applying for an interim order so that nothing can be done until after the creditor meeting and can only then carry on if the IVA application is unsuccessful.

[MelanieGiles]

It is very unusual for creditors to continue with legal action when they know someone is applying for an IVA. Have you and your IP notified creditors of your intent in this regard?

[Diesel]

Hi Everybody,
Thank you so much for all the responses and reassurances, it is really heart warming to have some support!
I have contacted my IP and they have also said the same as you guys have.
Thank you!

[kallis3]

Glad you're getting sorted Diesel.