www.iva.co.uk

hi i missed a payment to my dmp last month as i needed items desperately for our new baby and my husband has had no work now for 3 months .
i have just been advised by my ip to try to make a reduced payment into the dmp until our iva is approved ? is this because we are offering a lump sum iva and it could take a while for the sale of our home to go through ? obviously we will do exactly as our ip advises us but to be honest it will be a struggle as my husband still has no work ,i have set up a direct debit to pay the dmp a reduced amount each month but am just not sure what good it will do apart from kill us trying to pay it ,the dmp hasnt really worked out interest is added on now and again and now my husbands work is rubbish so a lump sum iva seems our only way forward to offer a one off amount .
i have been advised on here before not to make any token payments ,help what do i do ???? thanks guys .

I normally advise my clients to cancel their DMPs while the IVA is being prepared or before the creditors' meeting.

It won't affect the outcome of the meeting in any way as creditors will consider the IVA on its merits not on whether you have maintained payments into the DMP.

Hi,

I am so sorry you are feeling so down, I know how that feels, it will get better. I was in a DMP before went for an IVA. I stopped my payments, as soon as I decided to take on an IVA. It took about three months before our IVA was accepted and in that time I did get a bit of hassle form creditors but just said we were entering into an IVA, and would not be making any payments. We were advised by our company GT not to make any payments to creditors. Hope you soon get things sorted you will feel so much better[:)]

I to would tell my clients to stop paying there DMP as token payments barely meet the interest and your debts are likley to increase anyway.

Normal time scale for an IVA being approves is 6 - 8 weeks, so to miss one maybe two DMP payments will not cause you a major problem.

Carl

I would be inclined to continue to make a reduced payment if possible. There is no guarantee that the IVA will be accepted and therefore if it is rejected you could be in a worse situation than you currently find yourself.

I would also highlight to everyone that no one previously replying to your question is aware of any court action, pending or otherwise, and therefore I find it incorrect for them to presume that you can stop paying your creditors.

You should be guided by your IP with regards to this as he/she is in possession of all the facts and therefore knows best.

Completely agree with Jo.

It's fine for someone to say stop paying into your DMP (or making token payments) if they are not personally responsible for the consequences of legal action or a failed IVA proposal.

Be guided by your IP who knows your circumstances and who should be able to give you a commitment on the likelihood of your IVA being accepted.

hi andrew ,ive had so many different pieces of advice some say don't pay as it won't make any difference as once the iva company contact the various creditors its passed on to a different department etc ,then others say make token payments ,my ip suggested i make reduced payments through my already arranged dmp as we are really struggling at the moment ,my husband is self employed and works just not there at the moment ,but we are going to follow the advice of our ip and have reduced the payments to the dmp for the time been until hopefully the iva is set up ,thankyou for your advice .

Hi
"so many different pieces of advice some say don't pay as it won't make any difference as once the iva company contact the various creditors its passed on to a different department etc ,then others say make token payments "
That is why you always take your IPs advice and stick to it
Regards

I am a bit concerned that you are considering an IVA which is a formal agreement when you are clearly struggling with a DMP ? Have you considered that this is a 60 month repayment scheme with conditions ?

I understood that Depressed is selling her home to offer a lump sum IVA rather than making monthly payments.

Yes Skippy they are, all the more reason to keep the creditors happy whilst the house sale goes through as that could take some time. During that period, a creditor could take legal action and place a Charging Order on the property, which could scupper the whole proposal.

As I have said before, the OP's IP have advised them to continue to make payments, and therefore they should be guided by him/her.

Sorry, I was replying to J-Doubleya's post about a 60 month IVA!

HI ,WE ARE PAYING AS MUCH AS WE CAN AS I SAY IN TOKEN PAYMENTS ,BUT IF A CREDITOR WAS GOING TO APPLY FOR A CHARGING ORDER WOULD MY IP NOT GET AN INTERIM ORDER IN PLACE IN TIME ? THANKYOU FOR ALL YOUR VALUBLE ADVICE ,SORRY FOR THE CAPS !!

If there is a real risk of a charging order, then your IP ought to be considering whether an Interim Order is appropriate - but this will probably depend upon whether the creditor concerned has more than 25% of the aggregate vote. If this is the case, they may well reject the eventual voluntary arrangement proposal, and proceed with their legal action instead.

hi melaine how would you know if anybody was going to try for a charging order would you receive a letter advising of this or just a letter from courts ? is it likely ? my ip has contacted all of my creditors to advise them of our intentions ,would the courts usually agree to a charging order even if you are applying for an iva ,it seems unfair to other creditors .
if i did get a letter with these threats then would my ip have time to try to stop it or help ? thanks again melaine you are a real help .