Token payments - what to pay & when?

plymouthpafc

Just at IVA draft point with CCCS who have been pretty good to date. I'm facing a 6 year IVA (extra year suggested as we paid off loans arranged through family before 'official' creditors. Hey it's all debt to us and we didn't want family credit ratings being affected by our stupidity.

Nevertheless, having given CCCS details of balances outstanding etc, we have to make some payments to creditors until IVA is sorted. We are unsure what these token payments usually are. I recall elsewhere on the forums seeing £1, £5, £10 mentioned accompanied by a 'this is all we can manage until things are sorted' letter. Any guidance on this much appreciated. Cheers.

Barkley_2

If you want you can pay anything, BUT if you pay £10 to one creditor, they all have to have £10 not just £10 to one creditor and £5 to an other. Also, I was advised by my IP that I didnt even have to offer a token payment if I didnt want to.

althas

I have to admit, I paid nothing to any of them from the time of my proposal to the time of acceptance

What I did do (and this may have made the difference) is write to ALL my creditors saying I was in trouble, seeking profesional advice, felt guilty etc, and asked if they couple bear with me until they heard from the IP

I asked them also to not phone me and corespond through letters and email (I set up a specific free email account for this). All of them replied and offered their sservices, but said they would allow me 14 days or so until they had the official contact from the IP

I think if you are honest and up front with them, this goes a long way, instead of just stopping the payments and they do not know what is happening

But, as Barkley has said, you can not favour one creditor over another. So IF YOU DECIDE to make token payments they MUST be the same amount to EACH AND EVERY creditor

If you decide not to, squirrel the money you would have paid away into a contingency fund for future emergencies. (My IP told me to do this as well)

Good luck to you

Charco_2

If you think it's going to take a long time to set up your IVA then it may be an idea to make token payments... if it's just going to be 6 weeks or so then squirrel the money!

plymouthpafc

Wish I'd have known that a few weeks back! CCCSVA IP (or the IPs rep anyhow) has suggested splitting our 'excess' equally across our creditors which would be about £60 each. Not a mention of paying nothing or recontacting creditors. Now I've made one payment I'll have to thick it out this month I guess :mad: & squirrel next month.

Charco_2

CCCS(VA) are VERY creditor friendly... you know that song and dance they make about who pays them! They know which side their bread is buttered on.

Companies without such confused alliances (ie - none) know that they have to do whats best for BOTH the debtor and the creditor.... or perhaps i'm just cynical!

(that's not to say there aren't also simply bad companies who only serve themselves! Tis a minefield!)