Creditors Meeting Arranged.....Worried Sick

[mylastchance]

Hello Guys

Well Payplan have now arranged my creditors meeting for next week and I have managed to get time away from work in order to take the phone call advising me of the outcome of the meeting and I am SO SCARED!!!!

I owe approx 40k across 7 credit cards and all of my debt is unsecure, Payplan have calculated that I can pay £300 per month, this seems a small amount compared with the £780 minimum payments I was struggling to pay.

I live in rented accommodation and my car is not worth a lot, 2.5k.

What worries me is that I really hammered my credit card in the summer and did a lot of balance transfers just to make ends meet, I am so scared that the creditors will not agree to the IVA.....any advice or your own personal stories would really help me, I am struggling at the moment and feel so down....also what IF they DO NOT accept the proposal?

[luluj]

Welcome ... Please don't panic. Your IP has used your circumstances, income and expenditure to propose a iva to your creditors ...£300 a month is a good amount and they would not have suggested it if they felt it wasn't to be accepted.

The next few days will be difficult .. I remember the feeling well... But please don't sit and panic ...ask as many questions as you want and we will support you all the way.

[hubert]

Hi,

I was scared too for my creditors meeting.

I had over 40k spread over credit cards, loans and overdraft - all unsecured too.

I was worried because I'd recently done a balance transfer to a card, made only 1 payment (minimum) then went into my IVA!

I had loads of recent credit card spend too.

I had reached the point where the cost of paying just the minimums on the cards left me short for the month - meaning I had to spend more on cards just to live.

I think this is probably a very typical scenario.

I bet there are hundreds of people going into IVAs with a very similar set of circumstances so please try not to worry.

I had recent credit card spend from New York. I was scared they would think I'd been taking the p... by going on some glitzy holiday to NY then going into an IVA. This wasn't the case it was actually an expenses paid business trip but I wasn't asked to explain it and it wasn't objected to.

Good luck!

[Michael Peoples]

You should be fine. Payplan are funded by the banks and no doubt your IVA will be approved.

[Shining]

Hi and good luck for next week, an IP will put a good proposal forward and they'll have faith in the proposal so try not to worry although I do realise that is easier said than done. Hang in there and now you've found the forum do keep in touch. x

[LeFran]

Try not to worry, myself and many others were in the same mind-set before the meeting (which is not a meeting). Like us, you rent and we pay back half your dividend and it was approved. To be honest, what's the alternative for them, at least they get something back and they certainly won't pay for your bankruptcy. For them it's also 5 years of the possibility of getting more back, for example, redundancy, inheritance, lottery win etc and so its the best option all round. Try not to worry, there are many reasons for our predicament and we are where we are. It does you no good worrying at all. It WILL be approved and then after, regroup and work out your budget.

[Hair_bobbles]

We live in rented- have no assets - have got kids & had a bigger debt than yours!! I have to admit it was a nerve wracking period of time waiting to find out if our iva was going to be approved,,but it was & we've now come out the other side--
I think that if your ip wasn't confident that the proposal wouldn't go through, they wouldn't do it- I'm sure it will go well for you!

[back on track]

Michael why everytime payplan is mentioned you say "they are funded by the banks"as if that's giving people an unfair advantage over any other iva company.if they was always going to agree an iva then surley they would not need any private iva firm as we would be guaranteed a acceptance as you hint too.each proposal is surley judged on its merits and makes no difference to who actually propose's it.

[Foggy]

BoT -- the fact is that Payplan ARE funded by the banks -- whether that gives them any advantage is questionable, but I imagine they do work closely together. My impression ( and it IS only an impression) is that they are somewhat harder on allowances and reductions and keener to improve the return to the creditors. Everyone has to draw their own conclusions.

[Stuboy22]

Hi there. I also owed just over 40k when I entered my IVA, and my initial proposed montly payment amount was similar to yours. I too thought it seemed too good to be true, but when they called to say it had been accepted, everything changed right there and then.

As mentioned above, your creditors would rather have the guarantee of some return on what you owe them, with the prospect of that amount going up if your income increases etc. It's a daunting prospect, learning to live on what you will initially see as a tiny amount every month, but it can be done, and learning to live like that actually changes your mindset on spending.

I made the last payment into my IVA in March, and although I still haven't had my completion certificate (grrr), I've actually found that I still tend to live within the monthly budget that my IP set me, and the rest goes into savings.

Chin up, you won't belive the good nights sleep you get that first day your IVA is approved

[Michael Peoples]

I am not sure what advantage Payplan have over other firms when it comes to acceptance but I agree with Foggy. I have seen proposals where they have been less generous than other firms and while this maximises the return to creditors it also makes life more difficult for the clients.

[kev59]

my debt was more then yours, the monthly payments were lower. Was I scared? You bet I was. just like all others going into a IVA was thinking I would get a No.
But I got a Yes. Now my Iva is over and know it was the best thing I could have done. good luck and keep posting

[esgt1967]

Hi, I owed around £47k and my monthly payment is just over £200 pm - extremely low compared to what I was trying to pay before. Like you I was completely stressed out in the weeks leading up to our creditors meeting but all was approved - husband also has IVA with similar amount of borrowings but his monthly payment is twice mine due to me earning more than him and therefore more of our household budget being paid by me. Good luck, hope everything goes your way. Our IVA's were approved in January 2013 so we have just made our 11th payments and I can't believe how quickly it has gone.

[back on track]

well not knowing what other firms allow I can only go on what my experience was with payplan.my allowances where very good and was able to allow for things that I thought would not be allowed.at the end of the day all ip are paid for by the banks as they are the ones allowing the iva firms to draw there percentage from there pot that we the debtors pay back.i don't think there is that much between any iva firm when it comes to fees.but point taken about the allowances and that they should be a bit more uniform across the board and not be so differing from one firm to the next