Difference between IVA and BR

[TipoMibs01]

Hi,

First post on here, but here goes

I have ran up debt of around 60k through various reasons, Divorce, redundancy, failed business etc and have applied for an IVA.

The IVA company ( they are on IVA.COM) wanted three post dated cheques to place before my creditors as my regular monthly payments, the problem I had was that one of my creditors was my bank, and I was unable to use their cheques, and resorted to asking a friend to write these cheques for me, first question is this normal for an IVA company to request this?

Secondly, I am having a right nightmare trying to open up even a basic cash account, every application falls on deaf hears, I just want somewhere to put my wages into, and hence set up a Standing order for the regular payments, this is a real problem, makes me feel like just going BR, as there does not seem any real difference as you are treated the same, or am I being cynical?

Lastly, the smallest of my creditors are a real nightmare and call me at all times of day and at weekends, and threaten me with door collection and legal action, this puts the jeebers up me, I tell them who is managing my IVA proposal and they say they have not heard anything, then I get texts demanding money, can they legally do this?

I am currently waiting for my IVA proposal to be accepted, and I explain each and every time, do I have any legal rights to have a basic account?

Looking forward to hearing voices of wisdom

[kallis3]

Hi,

Some companies do ask for postdated cheques. If your IVA is turned down, the cheques can always be stopped.

Unless the Co-op or Yorkshire Bank were one of your creditors, then you should be able to open an account with them. Co-op can be done over the phone or in branchh, and Yorkshire is in branch. They are both sympathetic to IVA's and BR.

BR is an option if you have no assests (like house, expensive car) which you may well lose.

Your creditors will hassle you, doesn't matter how much you owe them, some are worse than others. Don't worry about the debt collectors, they are unlikely to send those round, and your IVA will probably have been sorted before any court action. They can keep phoning you and they will all say they have heaard nothing.

These are just call centres working on commission and will try anything to get money out of you.

[TipoMibs01]

I thank you for advice, I have tried the CO OP but they would not give me their basic cash account, they said I needed to write to their head office for reasons behind why.

Will try the other one mentioned

Thank you

[Michael Peoples]

First of all not all companies charge up front fees and some are only paid from the IVA pot if the IVA is actually accepted. The bank account business is normal but many here recommend the CoOp and Yorkshire Bank.

As for the creditors you should tell them that you considering bankruptcy and if they continue to harass you then you will have to go bankrupt as you cannot stand the prssure. Ask for a couple of weeks to see if you can find a way to avoid bankruptcy and they are usually fine.

[kallis3]

I'm surprised about the Co-op as they are usually quite good. It would be interesting to see what their reasons were.

[MelanieGiles]

Which company asked you to pay three post dated cheques?

A post dated cheque is about as worthless as te paper on which it is written, so there is no real effect of being asked to do this, but the request is a little unusual.

[kallis3]

We were just supposed to send one for ours, but as we didn't have a cheque book, we couldn't and just made the first payment afterwards by standing order.

[johnt]

sounds odd too me, I think you should either go with one of the IP professionals on this site and or approach the CCCS or Payplan.

Some people refer to Bankruptcy as being more hostile than an IVA, although there are also those who stick with an IVA for a few years and find it's just not for them. Both are a bit of a slog, but I guess you just have to grin and bare it while you can.

One problem I'm finding with my own IVA is a lack of any real emotional or practical support which is why I like visiting and sharing with IVA.co.uk

I guess another issue is that an IVA can seem overly stringent and inflexible once it's in place, although I'm sure some of this is down to the IP.

Given that my wife and I pay rent, and we run a banger, were beginning to wish we'd gone into bankruptcy right from the outset, especially since we’re finding things pretty tough at the moment.

We’d obviously be a lot happier if we had a few extra hundred pounds a month to play with, if only just so we can treat ourselves occasionally to the odd meal out or a short overnight somewhere.

IVA + Kids + Christmas + Birthdays + C$*P Job = failure as far as I can see. Maybe I need to be a little more resilient, put my head down and just get on with it. Who knows ?

[MelanieGiles]

John

If you are having second thoughts about the IVA, then you should discuss this with your IP to see if there is a solution.

An IVA is not something to be entered into lightly, and a good IP will have spent a lot of time with you ensuring that the choice of solution had been properly thought through.

Once you have entered into an agreement, however, there is nothing in the rule book which states you have to stay there and be miserable.

[Julie]

Hi - firstly,I would question the post dated cheques. Even though you went through IVA..com. I would be very wary of anyone who asks for post dated cheques.....afterall the value is nill but to ask/write one is not good practice. So in short NO it is not normal for an IP to ask for post dated cheques.

As for banks - this is an issue that is occuring more and more on the forum. Have you tried Co-op? Personally, I would like a campaign for not for profit, ethical banks!!! An IVA is very different to BR and you should not be treated the same. Unfortunately the call centre staff have no concept of IVA or BR!

As for creditors calling you - well they will ,there is a law for harrassment but to be honest it will fall on deaf ears! You're better off telling them of your intention to enter IVA/BR ....thereafter either unplug the phone or have a card
with "your IVA speech ready" have your say and hang up!!

Have a look at the post office, co-op or even pre-paid cards.

[David Mond]

TipoMids01- firstly it is very rare in my experience to be asked by an IVA firm who are going to propose an IVA for you to request 3 or any upfront post dated cheques. First of all you might not be able to on the existing bank account you have, which might be one of your creditors. Secondly you would need to open a new account and obtain a cheque book which would take some time. Also in my experience banks monitor cheque payments cleared through an account out of sequence so they can see if post dated cheques are issued. As Melanie requested of you which firm are you using who have requested this? Did they also indicate, or put in writing what these cheques were to be used for?

JohnT - you can always request of your IP a discussion to discuss your reservations and/or concerns. You might be able to suggest a variation to cover one off special items for special reasons. How long has your IVA been running?

[kallis3]

The thing with postdated cheques as well, is that they can be cashed straight away.

I imagine though that asking for those is the same as some companies asking for a couple of payments upfront, as some do.

The thing would be to ask what happens to those chequest if the application is unsuccesful.

[MelanieGiles]

How can you cash a post-dated cheque Jan? Surely it is worthless until the date endorsed on the cheque?

[Skippy]

I don't always think the banks look at cheques to be honest. I've paid in a cheque that was really to old to cash, and it went through.

I've also heard (I don't know how true it is) that if a cheque is below a certain amount it's not looked at anyway.

[carl_s]

I know I am new to the forum but just want to share my experience with post dated checks.

I once issued a post dated check and then the person I wrote it to deposited it into his account weeks before it was even due, and it went through. It certainly messed up my budget!