www.iva.co.uk

Hi there

Should I make a token payment to my creditors whilist going through the IVA process.

Hi,

If you are already in the process of applying for an IVA then you do not need to make token payments, but the choice is yours - you can make them if you wish.

There is no absolute need to do so, as Jan says, if you are already in the process of instructing an IP to look at an IVA for you. I generally do recommend that my clients, unless there are compelling reasons not to, make at least a token payment to all creditors as a gesture of goodwill, but it is down to the individual in the end.

Regards.

Is sending a fiver when you are due to pay possibly £200 - £300 really seen as a guesture of goodwill???

It is clearly an individuals choice and as others have said appears to have no bearing whatsoever on the outcome of a creditors meeting.

The only thing it can do sometimes, is to get the creditors off your back for a week.

I wrote to creditors telling them that I was in the proverbial, and that I would make best efforts to pay 'something' at the end of the (next) month.

When I got to the end of the month I had precious little to send anyway (so I thought better of it), but I did get some letters back thanking me for taking the trouble to let them know - and from those companies that replied I got very little hassle.

Barclays didn't reply and they were the worst ringing every hour on my mobile, work number - you name it.

I think just a communication letter helps, at least it worked for me.

In hindsight - I wouldn't send anything if you are going for an IVA - you are going to need any spare cash that you can put by during that period of 'not paying' to help to at least have a small amount as a buffer or contingency as you go forward.

I got fed up of writing to Barclays telling them what was going on and refusing to deal with it by phone, only letter.

They still used to phone and text me even though I ignored the calls.

They employ robots...

That's insulting a robot!

If you are in the process of applying its probably not so important.
Im out of work and therefore not applying at the moment- I contacted all the creditors last week and have agreed to give between £1 and £5 a month..which they all agreed to even Mercers have said they will come back in 3 months for an update, which is a massive weight off my mind. As long as you tell them the score they are fine

kallis - lol!

That's good stressed1.

If you can't do anything permanent about your debts at the moment, then it is best to be upfront and pay small amounts to your creditors.

Sorry you are out of work Stressed1 but as soon as you manage to obtain gainful employment seek advice as to your options to sort out your debt problems. At the appropriate time visit www.iva.com to review practitioners who will be able to help you. Good luck and I hope you get a job soon.

Thanks everyone. I must admit I was very surprised and I will be taking the "we will leave you alone" with a big pinch of salt.
David, did you receive the information I sent on Bond Partners

Thanks Stressed1 - I'll check in my office as I am currently away - let you know shortly.