www.iva.co.uk

Am having an IVA put together. Taking a bit longer as it was realised that for 5 yr IVA halfway through I woudl have no disposable income to offer so it will be a a ' one off' IVA proposale. The money is being lent to me and will not be able to be paid into the IVA comapny's account until next week - at earliest ( account money coming out of needed a notice period).

The creditors meeting cannot be called until the money is showing in the account and over and above that I know there is a requirement by law for 18 days notice. This puts a creditors meeting at the very earliest- to about mid September.

I have been making token payments but have now had a default letter from First Direct. I have until 24th Aug to pay the payments I was paying in full otherwise I will be liable for the fuill amount- in region of £4,000. Is this likely to happen before I can get the IVA set up - as am very worried about this. Also they have sent me an expenditure breakdown- do I need to fill this in as have done this for IVA? Thanks

Pass this on to your IP. You do not need to send the creditor a list of expenditure etc as you are proposing an IVA.

Don't worry about it. First Direct will get the same dividend as the other creditors.

Kallis is absolutely right - pass this letter to your IP and request that they contact First Direct on your behalf. If your IVA is rejected you will need to deal with it, so make sure that your IP knows what's going on and gives you the best advice for your circumstances.

But it's quite regular for creditors to contact you with payment offers, final demands or default notices in the lead-up to an IVA. Remember that if your IVA is accepted and completes successfully, all of this will be forgotten!

Good luck!