Pre-IVA - what do I do about creditors?

laurasbump

We're about to apply for an IVA - in the process of collating documentation. In the meantime what should we do with our creditors? We've been told that we need to offer an amount that's more appropriate to our disposable income but which also doesn't favour one creditor over another.

How do I work this out?

We haven't missed any payments yet, however that's mainly because I'm still living off credit cards for the food shopping which I need to stop this month.

Thanks,

Laura

Charco_2

generally speaking, I think people tend to offer just a blank £10 per creditor - if you can afford that! I wouldn't bother sitting down to work out a pro-rata payment for them (divide your surplus income by the total of your debts and pay each creditor as per their proportion of the debt), you're not going to be in that limbo area for very long. I wouldn't even bother paying the £10's unless you think it's going to be a while before you have a solution in place.

How do I work this out?

We haven't missed any payments yet, however that's mainly because I'm still living off credit cards for the food shopping which I need to stop this month.

Thanks,

Laura

Nobody will ask im sure but fi they do just explain quickly your situation, you've been robbing peter to pay paul and you're seeking a solution in Insolvency. Some creditors may be understanding, some may insist that you pay them but you cant, so dont!

laurasbump

Thanks charco :-)

althas

Personally, I stopped paying anything to them all (I was also inthe position of not being in arrear and living off cards), that was the advice of my IP

I then sent my creditors a letter, explaining I was having financial problems and was talking to an IVA firm. THEN changed my mobile number so I did not have to deal with calls, and anything I was on internet banking for, I went on and removed all numbers from there, so they would have to contact me by letter and so I would have a trail and copy of everything

Also you must not favour one creditor over another, so if you pay and amount to one, you need to pay that amount to them all (as you have been advised)

You are right to stop using the cards now. If you are not paying creditors anything, use that to live off and build a little contingency up for future

Good luck on your journey