www.iva.co.uk

Up to now I have not defaulted on any payments but I know there is not enough money in my account to cover all my payments to go out this month. Should I cancel all my direct debits or wait until the money is gone. I don't want to end up with a stack of bank charges and if I don't stop all payments am I showing the creditors who debit my account at the begining of the month when I get paid preferential treatment. I'm only at the early stages of the IVA process so I expect the situation will continue for a few months.

Hi
If you are in the "early" stages of the IVa process then your IP should have advised you to stop paying all creditors.Speak with your IVA company and see what they advise.
Regards

Yeah i'm also curious to know what happens on defaulted payments during the IVA proposal stage.

I'm about 3 weeks into the process in earnest. I wrote to my creditors middle of Jan to ask for 28 days payment referral while i sort out my finances.

Obviously i have now missed January and Februarys payments and so the amount i now owe is more than was originally set out in my IVA. Do i refer my creditors to contact my IP if they continue to call chasing me for a payment anmd at what stage in the process does the IP take responsibility for this?

Hi

If you have stopped making payments send any further letters or statements to your IP It wont stop the phone calls but just be polite and give them ref no etc and dont be pushed into making payments as this would be seen as favouring one creditor over another. The calls may get quite frequent and some will be very pushy but just give them the details they need and if they get too bad just tell them you are going to terminate the call. I found it all stopped when they got the proposal, but not until then. Hope this helps.

Ang

Thanks for that Aguise.

I wasn't actually aware i could pass my correspondence onto my IP. I wouldn't want to bombard them while they're working on my proposal.I'm just a little concerned that that the level of debt by the time we get to the creditors meeting will be significantly more than when the IVA proposal was drawn up.

Will bell my IP later as need a progress report really anyway.

Thanks again.

Hi again
They will need up to the minute statements to keep track of things but ask them if you are ringing as some companys may differ in what they want
Ang