Missing Payments...

[snowman365]

Dear Forum

I am still considering entering into an IVA and will be doing it sooner rather than later...

So far, I have cut my credit cards up, have made enquiries with 3 different IP's, am in the process of setting up a new bank account, and am probably going to try and claim bank bank charges from the last 6 years.

My main question is when should I stop paying my creditors - HSBC, Egg Card, Cooperative Bank (whom I feel very bad for letting down - they are one of the good guys) and Student Loan Co.

I have never missed any payments to date, but now all my credit facilities are fully maxed out and I can't juggle the money about anymore.

I am considering cancelling all my Direct Debits and missing a few payments, say 2 or 3 to put a bit of money away before entering into the IVA - I see some rough times coming up - may have to move house and my car is dying on me! How many payments can you miss before the creditors start turning nasty, and is this a stupid idea or should I just go ahead with the IVA straight away?

Any info. / advice would be greatly appreciated!!!

[Viki.W]

Hey Snowman,

If you have approached three IPs and they have all advised an IVA is for you, and YOU have decided that too.....then go for it now. It will take a while to even get your creditors meeting so don't delay.

I stopped paying my creditors when I approached my IP, I have missed three months now and so far, phone calls have been polite. You can then start putting money aside for your IVA payments and a contingency.

Good luck, Viki X

[sblack]

Hi Snowman,
We also stopped all payments to creditors when we approached our IP. We had never missed a payment up until this point. In all we missed 2-3 months of payments before the IVA was approved. The creditors are usually on the phone within a few days of you missing a payment but we found the majotity of them to be fine when we explained about our situation and our plans for an IVA.

[carl.s]

My head was so far west with worries about my debt and other issues in my life i didn't pay any credit card bills for over 8 months before i even inquired about my IVA which took a couple of months to sort. I don't think this is the best advise to people but i just ignored calls and letters so it didn't feel like i had a problem thinking i could sort it somehow.
Starting my IVA was the best thing i ever did tho, One third into it now.Its like counting the days down to a holiday! [:)]

[snowman365]

Cheers guys for your replies!

Because I have approached 3 different IP's about an IVA, I now feel a bit pressured into committing to going with them ASAP.

I would much prefer to stop payments for a month or so though and put a bit of contingency cash away. I spoke to one of the IP's about this today and they said that was a silly idea - but I guess they have a 'vested interest' in getting me to commit ASAP???

They also said that my creditors would not look favourably upon me missing payments...

Any advice???

[plasticdaft]

Just to let you know I got a letter from egg the day after I cancelled my direct debit(looking into a scottish trust deed,like an iva with a kilt on!!). I got another letter today and an e mail telling me to get a new direct debit set up. They were pretty quick off the mark to start hunting me.

No one else appears to have noticed the fact that my DD's have gone for 15 to 3(mortgage and life insurances).

[elizabethr]

I actually wrote to all my creditors 3 months ago and said I could only make a token payment and wanted a payment break so to speak until June - I have not been well and went back to work on reduced hours. Only one of them were helpful so trying to be honest and upfront didn't make any difference. All the others were pushy to get payments - yes we understand - no they didn't. Once I had decided to do iva with Melanie's team they suggested I don't pay and build up a contingency. Its a good job really coz all sorts of things have cropped up and I needed the money. I have put enough on one side though so that as soon as the IVA gets sorted I have the first payment ready. Have already worked out approx what I will be paying per month if it goes through. My phone calls have got no different in approach since I have not been paying the token payments because they were not accepting that agreement anyway. When they ring now, if I answer them, I just say I have a company dealing with it now but they still ask if I can make a payment - NO I don't think so.