I'm new to this and hope you can help me

[Frankie]

Hi all, Had clearstart on the phoe to me yesterday saying they received my paper work and will get back to me in a week time and take it from there?
I also received a call from RBS asking for payment and i mentioned that having difficulties paying and sorting out my financies and they will be receiving a letter or a call about this (did not no what to say). They asked for a token payment before the 17th Jan (my min payment is due then) if not they will have to put a default on my account.
This is the 1st of many to come.

[cat 1]

what precisely is a default? I'm with clear start.The IVA from start to being fully in place was around 6 weeks.They did not advise me to stop paying debts, but said to 'pay what I could'.Well of course I couldn't really afford anything.So I didn't pay anything at all fr one month.I used that money to get alittle put by for the first IVA payment.I wrote to all my creditors to advise them of finacial difficulty and gave them the name and contact details of worker at Clear Start.I was never contacted directly by my creditors.I had never defaulted on payments untill this point (I was excellant at robbing peter to pay paul).CS were very clear that I was not to use further credit.Another reason why I didn't pay as I would not have been able to survive as I hadn't got the money to live day to day and pay the credit bills.I asked lots of questions both on here and with CS. Keep asking. No one seems to mind. Goood Luck oh and welcome to the forum. Cat

[MelanieGiles]

A default is where you fail to comply with the terms of the IVA - and is usually related to missing three or more monthly contributions, but could also relate to failing to include creditors or simply not providing your IP with an income and expenditure summary at the end of each year.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
A default is also a reference on your credit file that is made by your creditors stating that you have defaulted on your credit agreement with them.It will stay on your credit file for 6 years,the same time as your IVA.You are normally given a default notice[s] prior to entering into your IVA.
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

[Frankie]

hi all!!

Just a bit worried! I'm single with 72K with worth off debts living with parents and doing an IVA with clearstart. (Just waiting for them to do a draft proposal for me.)

MY I&E came to surplus fund of around £550 per month (Estimated) I'm just worried that this won't be enough for the IP & Creditors.

Just having a worried moment thinking to far ahead.

[pixie]

Hi Frankie

I know it's near impossible but try not to worry! At this stage there's not a lot you can do but wait for things to go through. All I can suggest is that you make sure your expenditure is correct and you can actually live on it for 5 years. When you get your proposal read it a few times and ask as many questions as you need to ensure you fully understand the commitment. It's easy to miss things when you're completly stressed out!
You've done all you can at the moment, so relax and let your IP do their stuff!

Pixie

[roadrunners]

Hi Frankie and welcome to the site.
I can,t comment on Clearstart, but 3 days after contacting Payplan, we received info from them advising us to cancel all dd to creditors, and also to write to each creditor offering a token payment of £1.00 per £1000.00 owed. Also advised us to open a new bank account, which we did. We made one lot of token payments, and then Payplan said not to make another cos creditor meeting was 12 days away. Also that when the inevitable phone calls come to say that we are having financial difficulties, and that we have contacted Payplan with a view to them arranging an IVA, and that any further cotact from them should be directed to Payplan. One creditor ( EGG ) responded to this by immediately putting a default notice on the account, but as we were told,the the default would only be on our credit file for 6 years ( the same as the IVA)so dont kill yourself with worry that RBS will serve a default notice. Sorry if this was a bit long winded, but hope it helps .
Good luck and keep us all informed
Roadrunners

we'll make it !!

[Frankie]

Hi all!!

I have sent my draft proposal back to my IP. paying £550pm on £80K includes IP fees thats 23p in the £. Now just found out that a meeting been set for 4th Feb. Now i'm scary incase they say no?

[Adam Davies]

Hi
Why do Clearstart still propose such high IP fees[over13k] ?
They will almost certainly have this modified downwards by the creditors and this will push up your 23p dividend
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

[Frankie]

Hi andy

So what does that mean for me. Will i have to pay more or will they come to an arrangement between them. cause i'm thinking that if it not over 40p dividend i have no chance.

[Adam Davies]

Hi
Clearstart will normally reduce their fees,don't worry too much about having your dividend above 40p and you will not have to increase your payments unless your creditors request it at the meeting[if they do not agree with your expenditure details]
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