www.iva.co.uk

I have just received my first default notices from 2 of the credit card companies I owe money to.

I had beed advised by my IP not to make any payments to any of my creditors and now im beginning to doubt the information I have beed given, I am constantly being hounded by Goldfish asking for my arrears to be paid using a debit card and I have explained that I am in the process of having an IVA proposed for myself etc. I have given out the contact details of my IP but they do not seem to contact her only me.
Im now starting to have my doubts about the whole process and my wife is now concerned that we will lose our our house and that I am not being honest with her regarding the IVA as I can't answer all her questions.

So can anyone help me out ? am I doing the right thing by not paying my creditors / should I be making token payments ? and what do I do about the Default Notices ?

Regards, Tony

If your IVA is in process, you should not be making payments to your creditors, the figures you have given your IP are the figures that she will use in your proposal, unsecured creditors cannot take your house, they would need to issue court papers, get judgment and then apply for a charge on your property, this would take months, your propsal should only take a few weeks.
Send all correspondence to your IP
Dont worry

Tony -

I received several default notices whilst I was waiting for my IVA to be proposed - all you can do is tell the Creditors what is going on and refer them to your IP. I think that the default notices are routinely issued once you fall into arrears - we have all been in the same boat.

What exactly is the information / advice you are having doubts about??

Thats right, the majority (if not all) companies nowadays have their correspondence computer generated, if your account hits a certain point in arrears, the computer automatically sends out a default notice

Im just concerned that I am still receiving all these calls and letters even though I keep refering averyone to talk to my IP.
My IP says I should receive my proposal within the next 2 weeks with a creditors meeting in March.

I guess im a little nervous as it kind of hits home when you start getting the default notices threatening you with court action etc.
I know its probably a scare tactic but when the credit card companies call me they tell me I have been given the wrong advice by my IP and that I should continue to make payments as it could jeapodise my IVA. It just makes me unsure.

Im also worried what happens if my IVA isn't accepted by my creditors.


Regards, Tony

I shouldnt worry too much about the letters and phone calls. If your IVA is accepted, once it filters through the system with the creditors they will eventually stop.

Who are your creditors, how much do you owe to each and how much are you proposing to pay back?

Dont worry about your IVA not being accepted at the moment, an IP wont put together a proposal they think will fail
Why not invest in an answering machine so you dont have to worry when the phone rings (i actually changed my phone number)
You do not need to be paying creditors if your proposal is being prepared
What does your IP say?

Tony

IP's generally give that advice in order to ensure that none of your creditors are treated unfairly or receive preferential treatment in the priod leading up to the proposal of an IVA.

There is no harm in making token payments, but in reality you get no better treatment from the creditors and indeed if they can see that you will pay something this often makes them more persistent.

I personally always like my clients to build up a little contingency money in this period as well in order to put by for a rainy day, ao that you start your IVA off on the best footing and in the belief that you can comfortably make your payments.

My staff and I spend much time on the telephone with creditors, and we write to them all on day 1 of our instructions to advise that we are acting and request that they deal with us directly. Sadly in today's call-centre world, little heed is makde of these requests.

Please don't doubt your IP - they are probably very experienced and would not be acting for you if they felt your case was not worthy - and do remember that almost 90% of all IVA proposals are now being accepted by creditors.

Thanks for you help guys

I owe about 40k to various credit card companies and just over 14K to Direct line on a loan.

My IP says not to pay the creditors at all (which I feel is the right thing to do) but can't help feeling a little out of control of things at the moment, I know its all my own fault that im in this situation and im just getting a little stressed by the constant phone calls and I dread coming home from work to open up the mail.

Try not to worry too much at this stage Tony. You are one of thousands in the same boat and everyone receives the same sort of correspondence.

Your IP now realises who you are Tony - and has you at the top of the list for next week!

The penny has just dropped with myself Melanie, I guess Ive been having a blonde moment and only just put 2 + 2 together correctly.

Regards, Tony

Hi Tony

Its a difficult situation and can be so stressful but you need to be firm with the creditors and stick to your guns - I remained polite but firm and kept repeating the same thing so many times it became my mantra.
Trust that you are getting the best advice, and if its from Melanie as I assume you definatly are.

You will soon forget all this when you have your iva
Good luck
Emma