token payments or not?

[KLG2002]

Hi all,
I am in the process of starting an IVA application with Grant Thornton and am just waiting for an engagement pack. On the phone the other day I was basically told by the advisor that I should stop paying my creditors unless I wanted to make token payments in the interim but only if the payments were fair and didn't show preference from one creditor compared to another. Anyhow I have missed a payment on my beneficial C/C (mainly because the month before the minimum payment was £161 but only could afford £120 and they hassled me with phone calls for the £41 telephoning approx 6times a day even with me answering them) Today they phoned, I answered and the usual spiel about payments began, I explained to him about Grant Thornton but still he persisted and he told me if I didnt make a reasonable payment then this would go against me when it came to the credditors meeting, is this true? I don't want to damamge any chance of the iva being accepted as I believe its dodgy to begin £51K debt only got £279 a month to offer into iva.....they have me worried.
Any input would be great

KLG

[angela18]

we never paid any token payments to our creditors and it didn't affect our proposal..

good luck with IVA

[Viki.W]

The person who has phoned you will NOT be voting at your creditors meeting. It will make absolutely no difference if you make token payments or not, it will also make no differene if you decide to answer the calls or NOT. Hang in there KLG. X

[jpj]

I never paid a penny either to any creditors....and like Angela 18 it made no difference!

[KLG2002]

Thank you all for your quick replies, that makes me feel a little easier
KLG

[angela18]

Good thats what we're here for.. keep posting for support!!

[indebtforever]

hi KLG2002 i personally wouldn`t pay any token payments these will better saved for use when hopefully your iva gets accepted.Out of interest have you an equity release in the later years of the iva?

[KLG2002]

Hi I.D.F,
I don't know about the equity clause in the 4th year of the proposal because at present I am £10K in negative equity. All the advisor said was that basically it will be a case of putting the clause in (incase there is equity by the 4th year) along with the chance of extending the iva to 6years so the creditors will have the choice of which ever option gives them the best return.
KLG

[indebtforever]

yes its a nightmare waiting for the meeting result i have been there[:I] but i have read on here many iva`s getting approved for very low dividends i think it hinges on who your creditors are and you have a barganing tool of the equity and paying for a 6th year which isnt great but if its enough to get it accepted so be it

good luck keep us posted

[plasticdaft]

This claiming that if you dont make a reasonable payment is a mere tactic to get more out of you prior to your iva. Token payments make little or no difference to the way creditors will vote,you would be better to save up what you can for an emergency fund(car mot time,washing machine breakdowns etc),coz during the iva money can be fairly tight.

[kallis3]

I made no payments at all to mine prior to my IVA.

I never answered the phone either. It made no difference to my voting.

They're just bully boy tactics.

Ignore 'em.

[moretolife]

hi there...welcome...
we didnt pay anything in the way of token payments...we took loads of calls....just repeated the spiel as pleasantly as possible and then hung up....at various times we didnt even answer the phone but let the machine take them

they do tail off....just grit your teeth and smile.!!

this wont affect the voting ....the people who make these calls have nothing to do with the vote or the creditors meeting...at the end of the day they just go home after having done a grotty days work..

can you imagine being a call centre operater doing this job...i really feel sorry for them in some weird way...

[freelili]

I made token payments or £5 per month to all of my creditors to start with, then came the different debt collector letters and it was a nightmare keeping track of it all. Then nobody was satisfied with the fiver and kept on demanding more and more. I even had one put the payment through twice. In the end I thought, stuff this and stopped paying any of them. I also refused to speak to them verbally and asked them to put it all in writing.

The people who phone are from call centres paid to extract £xx amount each day, they are not interested how they get it or what the circumstances are for you not being able to pay it. So many of them dont even know what an IVA, BR or the laws on harrassment are and they dont care.

[indebtforever]

i would like to stress that if you are just starting out make sure you fill your income and expenditure form in accurate this will base what you have to live on for 5 or 6 years if you need advice on some things you are not sure about adding ask on here we are all here to help each other[:)]

[look_divine]

can you add a list of what you added for an iva gives people an eye view of some things as im well lost to what to add up
thanks