I am just starting my application

[Louise86]

I am just starting my application for IVA,so I have a long road ahead of me.
I’m feeling scared, confused, disappointed in myself, ashamed and very embarrassed.I’m not telling anyone, but it’s a big burden to carry alone.
I have done a lot of reading on IVAs and especially on this group,I see a lot of people say it’s a Rocky journey.Can I ask how?
Although I’m in financial difficulty, I have never defaulted on payments,will I have creditors chasing me during the process?as the thought of this is making me very stressed.

[luluj]

Welcome to the forum. You are amongst friends here that have all been through the emotions you have listed.
You have done the hardest part ..acknowledging and seeking help. Don't feel ashamed... be proud of the steps you are taking to overcome just a high hurdle in your life.
Creditors may chase but simply tell them you are entering into an iva ...once you have signed your proposal they will get notified and tend to stop chasing.
Together we can support you through this.

[kallis3]

You will have rocky moments - we all did. That emergency that crops up when you least expect it for example, a health problem. You will get through it.

As regards creditors, I suggest that if you do any online banking or have credit card accounts on there, that you go into them and remove contact details so they cannot contact you. Similarly, if your bank is one of your creditors then you need to change banks asap. Co-op Cashminder is a good one and recommended by a lot of posters on here. Avoid HSBC and First Direct as they are not IVA friendly (even if not a creditor) and have been known to close accounts without notice.

Can I ask which company you are using?

[Foggy]

Some creditors might call, but, as Luluj says, simply tell them you are entering an IVA and ask them to speak to the IP. Do not enter into any conversation. Some say refuse to answer the security questions, then they are unable to proceed --- never tried that one myself.

Bumps in the road are usually caused by confusion and lack of communication, so keep the lines open, ask any questions you need to and do not agree to anything you are not 100% sure of --- if they have to explain their reasoning a dozen times, it is important to stop any surprises later on. We can also answer any questions.

[Louise86]

Thank you everyone!it’s all consuming my mind at the moment, I feel so much uncertainty about my life now, feel I’ve failed my son.I’m renting my house and terrified my landlord may find out and hold it against me, or if I have to move in the future, I’ll be homeless, as nobody will accept me with an IVA.So many thoughts running through my head.

I keep thinking maybe I’ll dig myself out of the debt and not have to do an IVA, but I know that’s not possible.

Thank you for the heads up about bank accounts,I really need a bank account which will give me a contactless card,does anybody have any recommendations?
Also is it worth opening my new bank account now before the process begins?

[kallis3]

I would open one now as your credit rating doesn't seem to be impacted. You could try Co-op or Barclays and I believe Yorkshire Bank are ok as well. If you can get a full account opened now then you should be ok.

[Foggy]

Yes ! Get a new account set up as soon as possible. Don't use a switching service as some of your standing payments will no longer be needed and you do not want authority to pay these transferred to the new account.

I used the Co-Operative Bank and opened a couple of Cashminder accounts ( one for income to be paid in and standing orders and DDS to come out of and the other where I transferred an amount at the start of each month for shopping etc. ).

[kallis3]

Agree - unless Co-op have changed, you have to open a Cashminder either in branch or on the phone. Make sure you don't transfer unnecessary DD's or SO's as Foggy says and do it yourself.

[Louise86]

Could I ask another couple of questions:

So I’m on a group on Facebook which doesn’t advise IVAs, they are saying that you can reduce debts by doing 3 letter processes etc.This sounds like a really long stressful process, which would involve creditors chasing and defaults etc..has anyone heard of this as an alternative.Mostly IVAs seem like the best way forward but then there is that doubtful part of me that just doesn’t know.My head is so confused.

Also, during an IVA, how do people manage there money?Im thinking that I might withdraw it in cash and put it into pots to manage it better..do you get questioned if you do this?do you have to prove what you have spent your money on?food,clothes, leisure etc?

[Foggy]

Regarding spending - this is exactly what I did in the early days. I was 'low tech' and used envelopes to start ! When I eventually became confident enough to use my debit card in the shops I then went on to using two Cashminder accounts: One for income and main spends (DD's and Standing Orders) and the other for day to day expenses (my 'envelopes'). It was never mentioned by either of my IPs ( I changed firms mid-IVA), nor, in fact, were the statements for the 'spending account' asked for.

This 'three letter' method -- no idea ... can you explain more ? Sounds like a simplified DMP.

[Jessie91]

Regarding using cash only and putting into envelopes that’s a great idea I was given on here and I do this every month on my payday. I withdraw all my money except direct debits and put into envelopes the amount and whats it for, for the month. Only time I use my card is once a month on payday to withdraw the money otherwise I only use cash I feel I have more control this way.

[Jessie91]

And my iva (Creditfix) have never questioned me doing this and I’ve been in a iva nearly 2 years now (2019)

[Louise86]

Thanks Foggy.So helpful to be able to hear people’s experiences.
I honestly don’t really know about the 3 letter process.It’s a group called beat the bailiffs.It’s a way in which you can reduce your debt by sending letter,and appealing claiming irresponsible lending etc. They don’t advise IVAs but they advise following these procedures.
I just feel this sounds like a very long drawn out stressful process and I for one am already at my limit so couldn’t handle much more stress. Also,it’s my debt to pay so realistically I’d like to pay as much as I can towards it.

Jessie1991 thank you very much.I really think the cash thing is the way forward to begin with.I am well and truly done with credit so it will be refreshing to go back to simple living.
I will be with creditfix also.

[Foggy]

Yes. They have a somewhat different outlook on debt repayment to those in an IVA.

[kallis3]

Personally I would not do those 'letters' - I doubt it would get you anywhere and you would be bombarded with creditor letters and calls. Stick with the IVA route which is legally binding and they cannot contact you.