Hi, I'm in the advanced stage of an IVA proposal and would like some advice on keeping your bank account. When I first started discussions, I was advised that as my overdraft was small, I could pay this off and keep my bank account - providing the overdraft facility was then withdrawn. I have contacted my bank and agreed this with them and paid half my overdraft last month and will be clearing my overdraft this month. The facility will then be taken away and my bank account will revert to a basic one albeit with the same bank etc. I've kept my IP company and everyone informed of this throughout but have had a call today where it seems that this is now a problem. I've been asked for a payment to my IP before they proceed further (which has come out of the blue) and will struggle hugely to pay off my overdraft and pay the IP. The message I'm getting from the IP company now is that I shouldn't be clearing my overdraft but should be paying them instead - confused now and have to say starting to feel alarmed. Can anyone help please?
Is this payment that you have been asked for the first monthly IVA payment? If so then tell your IP that you cannot afford to pay it at the moment. It shouldn't need to go across until the date of the meeting.
It may be that you are using a firm of 'introducers' and this is their fee?
You could also try and open a fresh bank account and have the overdraft included in the IVA.
Which company are you using?
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
Thanks for your reply. This was described as my first months IVA payment which I was surprised at as I haven't had the creditors meeting set up yet - in fact my proposal has yet to go to the creditors. I've already paid two months fees to the introducers. I don't begrudge paying the money but this is the first I've heard of having to make a payment, and I can't afford to pay this together with clearing my overdraft. I realise I could include the remainder of the overdraft in the IVA but that makes the payment I made last month a waste and I have informed them all throughout the process that this is what I wanted to do. Just very confused as they have been really helpful so far and not had any issues. Oh it's JonesGiles I'm with.
Usually you would make the payment in time for the creditors meeting but not everyone can afford to do that.
I know Mel's company does ask for this but I'm sure that if you speak to them and let them know that it isn't doable at the moment they will let you pay at a later date.
Mel will probably be on later.
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 - speak to your IP again to find out why your first payment is due before the meeting. The money you spent reducing your overdraft hasn't been wasted as you will take a smaller debt into the iva.
Mel does like the first payment to be there so the IVA is up and running straight away and you're already one month down then!
My own company had asked for this but we had no way of paying it so we just did it a couple of weeks later by standing order.
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
Thanks both for your replies. I have a call with my IP Friday to finalise my proposal so will talk to her then. I want to clear my overdraft as I've budgeted the money and its one less creditor. It just would have been helpful to have advance warning that they would need an upfront payment and when! Was just a very confusing and out of the blue phone call particularly when they started to advise that I don't pay Northern Rock correctly (which I'd been advised against doing by Melanie and others) so I could have money to pay them.
The up front payment is not set in tablets of stone - and is merely something that I like to see as a gesture of commitment to ourselves and to creditors. It also demonstrates that you have a budget which is working. We would never delay a client's application if they could not afford to pay the money over, but will need to understand where you are with your budget.
If you could e-mail me directly I will look into this for you, and Sue Clay will also discuss this with you during the meeting scheduled for Friday.
Melanie, thank you for replying to both posts. I feel a lot clearer on what has been requested and think there were just mixed messages yesterday on the phone which confused me. My proposed budget is certainly workable - the only issue is the clash this month where I planned to clear the remainder of my overdraft. I look forward to discussing with Sue on Friday and thanks again for your time.
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
I chatted to Sue about this today and she will go through our procedures with you on Friday. Please don't worry - we can be very flexible to meet client's individual needs.
