I'm new to this and have only just set up my first telephone meeting with an IP but I need some help. I have credit card bills to pay this week and next week and I can't pay them. I was wondering if I should call the companies and tell them I am in the process of applying for a IVA and that I can't pay anything until it is sorted out. This would give us money for food etc that we won't have if I pay the bills!! Please help - not sure what I have to do.
Hello and welcome. I am surprised your IP has not made clear what you should do re this, but it goes without saying that putting food on the table is more important than worrying about unaffordable credit card bills.
You should stop all unsecured debt repayments now, as much as anything else to get back into the habit of budgeting properly and living on a cash budget. Your IP will happily contact your creditors once all the paperwork is received back from you, but in the meantime it is perfectly reasonable to inform any creditors that ring you that you are looking at an IVA. It is then down to you whether you pay them nothing at all, or maybe a little token payment. Either way will not prejudice your proposal at all.
Hope this helps.
Regards.
Last edited by size5 on Wed Sep 30, 2009 10:27 am, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi Samantha, and welcome to the site, you will find all the posters on here really helpful and the advice is priceless, especially from the experts. When we were in your position I rang our creditors and told them I was unable to make a payment, I did not make any sort of payment to any of them as you have treat them all the same. As soon as you have had your telephone meeting with an IP you will feel a lot better, and they should be able to tell you all your options that are available to you. But I would definitely use the money for food etc if you cannot pay your creditors as well. Without the help from people on this site and its sister site I do not know what we would have done.
Thanks for the help - I will make sure I ring the companies today. With regard to my overdraft - I have an arrangement to pay £10 a month off and I am down to £600 now with the next £100 coming off tomorrow. If I stop it I won't have any money as my account will be stopped and all my bills won't be paid! Can I continue with this arrangement for now and look at opening a new account for the future? Also a couple of debts (unsecured loan and a furniture credit purchase) are taken by direct debit. Should I cancel these now or wait? I'm sorry for all the questions but i really have no idea what to do.
I only just enquired about an IVA yesterday so I haven't had a talk with my IP yet - that comes tomorrow!
You should be arranging alternative banking facilities asap to protect your income in future months. You wouldn't have been able to stop the overdraft payment being taken away as your bank have a right to offset the money. If the unsecured loan is with the bank then it is a similar story, but if not then you should cancel it asap and also the furniture payment, provided the furniture is not from somewhere like BrightHouse who will repossess in the event of non payment.
It is unusual to make a potential client wait for 2 days before they are spoken to, but I am assuming that maybe you have spoken to another member of staff first? If not, then take the chance to speak to 2 or 3 providers today, who may well be happy to guide you through your options and all the processes involved. Never a bad thing to have a 2nd or 3rd opinion anyway, accordingly visit www.iva.com and have a look around there.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Thanks size5 - I did speak with Melanie and as I work and need an evening appointment I had to wait until Thursday. She seems to be very popular on here so I'm looking forward to getting this mess sorted out!
I think I have a lot of questions that Melanie will answer for me tomorrow - hopefully!
Hi guys. I have just opened us a joint account at the Co-Op bank so once we get all the info through the post I will transfer our salaries and dd's for everything not debt related to that account. I really feel like I'm moving forward now and getting our lives in order.
I'm so glad I found this site as everyone is so nice and the advice has been brilliant and it's only day 2 of my journey through this mess!
Very much looking forward to speaking to our IP tonight and finding out what we need to do next. I am less concerned than I was at the start of the week that's for sure!
Good news Samantha, it seems as though things are startin to go ahead for you.
You have an excellent IP in Melanie.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi kallis3! Lots of people are saying how good Melanie is - she needs to be to help us with our mess!!!
Fingers crossed I can get everything in order and get an IVA so we can get our lives back.
I am sure you will be fine, Mel has an excellent reputation on here.
Don't forget that we are here for you for any advice and support you may need along the way.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
