www.iva.co.uk

Hi all so im now in the process of my proposal being put forward but still the weekly debt payments are obviously coming in .I have my new bank account up and running wages paid into it with priority debts sorted .Do i try and struggle these other payments whilst this 6 week process is underway or do I contact my creditors and ask for 30 days breathing space whilst I build up funds in anticipation of an approved iva .I have a reference number now with vanguard do I use this to advise them and give me time to sort things out .I dont like falling into arrears but iv been told this is the best course of action to take right now im afraid of the calls threats etc that may be coming my way .My credit file will already be trashed right now so I dont see what difference it is going to make to miss a few payments and build up some funds but I suffer anxiety and missing payments worries me .Any advice would be greatly appreciated .Iv just started to miss payments this month and it is worrying me so I have some time before the big boys come on to me and that im taking action to resolve my debts so maybe not paying this next months debt repayments will show them im financially struggling as iv struggled so far to keep them all to date .Regards to you all Colin .

Vanguard have told me to use the reference number they have given me and email my creditors to explain as and when the payments become due and to use the next 6 weeks to stop paying them build up a small fund ready for an iva is this really the best course of action or should I continue my payments to keep them off my back so to speak im a little lost in this interim period .

Barclaycard are expecting a 180 payment by 11.45 tonight and my second barclaycard are expecting 225.00 next wednesday iv 500 left in my account so il have very little to live off and if my iva is approved il need to have some money built up to start it off so maybe I should be building up some reserves im so lost in what to do in this interim period any advice would be greatly appreciated thankyou for your help so far forum x

Most of us (me included) simply stopped making payments once we knew the IVA was being prepared -- this gave us an emergency fund (which in most cases was needed at some point). Some made token payments, which are really a waste, in my opinion, and a very few struggle on to keep up payments. If you look at it logically, the creditors wo't expect you to make full payments, once they know about the IVA --- as that is why you are proposing an IVA --- you can't keep up the payments.

Inevitably, call centres and collectors will phone you --- do not discuss anything with them, Simply tell them that you are going into an IVA, give them Vanguard's details and ask them to speak to Vanguard. Some call centre operators do not even know what an IVA is and will spout all sorts to try to get a payment from you. Many will put a hold on calls.

You are nearly there !

HI,

I made token payment to all creditors of £1, this was under the advice of Step change. I wrote to all creditors explaining i was in financial difficulty with £1 postal cheque.

Good luck

I made no payments to my creditors at all.

Once i spoke to vanguard i never made another payment until it was all setup, i saved part of the payments i would of made and that went towards the commitment payment before my IVA started.

We only swapped direct debits for payments which were going to continue such as gas electric council tax mortgage etc.
All credit cards and loans were left linked to the old account. We didnt pay anyone anything in the interim. If I got calls we said we were in talks about arrangement and gave IP’s details. Letters we just filed.
If they tried to take a direct debit from the old account (it wasnt closed it just didnt have funds going into it) then it just got blown out and fees added!!!
when the IVA got set up, the new account balances were submitted
for their figures.
Look at it like you are closing rhe door on the debts and leaving them all behind and run your new financial life from the new account.
Good luck for your creditors meeting.

When my proposal was being drawn up, Stepchange advised me to start living to my IVA budget, and as my payment to then was £275 the guy said I should pro rata it according to debt amounts and pay them accordingly. Barclaycard were my largest one, I paid them the biggest chunk but it wasn't the £230ish they wanted as my minimum payment. At the time of the agreement being drawn up I wrote each of my creditors a letter and told them how much my budget was and gave the percentage and amount they would get. They all wrote back agreeing to accept it for a couple of months, wiyh exception of MBNA who wanted more details about my budget (they didn't get it) and First Direct who again wanted more info which I didn't bother to provide and then they went on to keep calling me, so I blocked their number!

In hindsight now, more than 2yrs in, I wish I had kept the £550 and paid them nothing! At the time I was so worried the IVA would be refused if I didn't pay. If you are worried, make them a token payment of £10 each and keep the rest. Then they at least got paid something.

Ok thanks for your valuable advice everyone Maybe il just keep the payments build up a fund and save it ready for my proposed iva commitments and grin and bear the calls !

Thanks everyone I think il save up what I was going to pay this month hopefully 4 to 6 weeks if iva is approved .

And if the phone calls get too much just refuse to answer their security questions. Tell them to write.