www.iva.co.uk

Hi Guys.

I am nearing the proposal stage of my IVA application and stopped paying my creditors last month on advice from my IP's team. I have received credit card statements in the post today and they have started to charge me late payment charges of £12.00 per time. I am worried that, the longer my application takes to process, the more I am getting into debt as they won't stop the interest etc until my creditors meeting when hopefully my IVA will be approved (well fingers crossed anyway). Obviously I realise I am not alone with this as it must be happening to everyone, but do I just have to swallow these charges or is there any way they can be reclaimed once the IVA has been approved?

Any advice would be appreciated 'cos I'm really worried. Thnx Kazzy x [:(]

Don't worry Kazzy, it'll all be included in the IVA. Horrible isn't it?! X

Oh Viki, long time no speak. Thanks for replying. So, does the IP make allowances for the charges, knowing that they will be added until the IVA is sorted? Kazzy x

Hey Kazzy, hope you're ok. I'll let Melanie explain as I'm rubbish! They won't stop adding charges and interest, that's normal. Just not very nice when you keep seeing it going up and up. You'll be ok, X

Thanks Viki, you say they won't stop adding the charges and interest. I take it that is only up until the IVA is approved??? Am I right in thinking that the interest stops being added once you are in your IVA? Hope you are keeping well and the sales is proceeding smoothly. Kazzy x

Hi Kazzy,

Once the IVA is approved, all interest and charges will stop.

Yes, everything including all accumulated interest and charges will all go into the IVA, you won't be liable for anything afterwards. Your debt balance will carry on increasing until your IVA. Won't be long now, I'm sure. X

Hi Jan

Thats great thanks. So hopefully it won't end up being too much in charges as I am quite a way down the line now, I think. I'm so impatient, I just want this meeting booked now and then I'll know what I'm doing for the next 5 yrs. The stress is unbearable! Kazzy x

Thanks also Viki. I understand now. Kazzy x

Creditors can claim interest and charges accrued up to the date of the approval of the IVA - at which time they have to stop.

Thanks Melanie, it's all clear now. I just had visions of £100's of pounds in charges being added to the already horrendous bills. My own fault, what else do I expect really? Rgrds Kazzy x