Quick question....when do you stop trying to pay your creditors if you're starting an IVA?
I mean, if you contact an IP and start filling out info for an IVA do you still keep trying to pay your creditors or do you just stop paying full stop?
Or do you stop paying once an IVA is made out by your IP and sent to creditors to view?
Or do you stop paying once the creditors agree on the IVA?
What I'm getting at here is I'm trying to limit the hassle creditors will give me if I file for an IVA as I have read it can take several months for an IVA to go through - if it does.
Generally, you would stop paying once you had reached the decision as to whether to proceed with an IVA. IP's do tend to differ slightly in the way they do things, eg some will say no more payments full stop, others will advise token payments etc. Some IP's will expect the proposed new payment to be made to them as soon as possible to replace the contractual payments, others will not look for payment until successful creditors meeting. After speaking to 2 or 3 providers you should then be better placed to decide what way is right for you.
By the way, if all documentation requested is forwarded to your IP promptly then the process should be a lot quicker than you indicate.
Hope this helps.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Hi There,
I stopped paying all creditors after the initial contact with my IP (Mel and the team) I decided on the phone that an IVA was for me after the first conversation, it then took 6 weeks to get approved, you just have to respond to letters etc very quickly which I did and that was it, did not give the creditors time to start hassling.
Best Wishes and good luck
Mark
ps the only dumb question is the one you do not ask [:D]
Size 5 is right about the process but what you also have to bear in mind is that if you are eligible for an IVA you are not in a position to pay creditors without incurring further credit. So if you did manage to continue to make the payments it would only be by increasing your overdraft or by drawing money from one card to pay the other.
There will be phonecalls and letters but if you gather the information requested by your IP the whole procedure should only take a matter of weeks. Primarily, the IP will want a list of creditors, a list of assets and proof of income. Gather up your most recent statements and balances, mortgage statement or rent agreement, wage slips or accounts, copy tax credit award and bank statements. Open a new bank account if you have any debts to your current bank and this will ensure the proposal is drafted quickly and will minimise any creditor contact.
Good luck and none of your questions were dumb at all.
But token or pro rata payments could continue to be made until the IVA has been accepted. We always give the clients that choice and leave it up to them whether they will stop payments or continue at reduced levels.
