IVA and Stopping Direct Debits

debtfree2016

Good morning all.... I have asked questions before with some great advice but please could someone answer the following before i apply for an IVA. I haven't fallen or defaulted on any payments so if i applied for the IVA would i continue to make payments until a decision is made or would it be that i would be advised to stop payments to ensure correct amounts of debts are shown.
Thanks in advance for any response.

judojub

Hi.
I would stop making all the payments now and start putting that money aside for a contingency. You could, if you wished, send a token payment to all of your creditors but it would have to be the same amount to all ( I didn't bother doing this myself). Also, if you bank with any of your creditors then get yourself a new account opened elsewhere (if you haven't already done so that is!)
Good luck

EDIT - Actually, I misread your post. The above is what you should do if you are already in the process of an IVA, but if you have not yet spoken to a company to see if it is a viable option then I am not sure that you should stop payments! I am quite new to this myself and I am quite sure somebody will be along to put you on the straight and narrow!

debtfree2016

Hi JUDOJOB, thanks for getting back to me, like many others i guess falling into the situation where you have to apply for an IVA feels like failure but at the end of the day each person has their own reasons for it happening. Waiting for a period of time knowing you are taking from peter to pay paul solves nothing and just increases the debt. We currently pay around £1700 in loans inc credit cards per month with a total debt of £70k joint income of £3500 and expenses and mortgage waiting to win the lottery is now not an option. Thanks for the info....

the_bright_side

I stopped all of my payments the day I decided to do the IVA - some 12 weeks before the actual creditors meeting. In fact when you fill out the final forms it says that the debts are within a 15% tolerance.

debtfree2016

Hello the bright side thanks for this, so i guess from what i have read it's between 4 and 12 weeks ish to get application to agreement?

judojub

marklinard wrote: »

Hi JUDOJOB, thanks for getting back to me, like many others i guess falling into the situation where you have to apply for an IVA feels like failure but at the end of the day each person has their own reasons for it happening. Waiting for a period of time knowing you are taking from peter to pay paul solves nothing and just increases the debt. We currently pay around £1700 in loans inc credit cards per month with a total debt of £70k joint income of £3500 and expenses and mortgage waiting to win the lottery is now not an option. Thanks for the info....

I know what you mean. I felt like a failure. We were using CCs to live on and using them to help make minimum payments on debts. The guilt I felt was horrible. But, taking the step to do something about it has helped me to realise there is hope and that I CAN and WILL have a debt free life!:o It is like a breath of fresh air to pay for something with my own cash instead of a card!
Best of luck with it all. Let us all know how you get on:)

the_bright_side

I think 8 weeks is about average - mine was 12 loooooooooooooooooooooooooooooooooooooooooooonnnnnnnnnnnnnnng g g g weeks but its done now.

judojub

From application to creditors meeting (4th April incase i hadn't mentioned it already!! lol) has been just under 6wks.!

debtfree2016

Thanks all, i have also been on the website beatmydebt.com, very usefull. Not sure about putting my figures and and contact details to see a debt report and advice.

TeetersOnHeels

My next big step will be to stop making payments. I've got estate agents round this week for a house valuation, and to be honest I feel like I'm about to step off a very big cliff :eek:. Like you, I've never missed a payment, but in doing so I now have no more credit to fall back on either, so either way something's got to give. I've given over all my creditors details to my IP, and hopefully they will decide there is a viable proposal to be made. I keep reading that an IVA won't be proposed if they IP didn't feel confident it would go through...doesn't stop me wondering if I'll be the exception!

the_bright_side

Hello TeetersOnHeels, I felt the same and my IVA which was not a normal IVA in any respect (not property, low dividend, just starting self employment, very large debst £140K >) got accepted. If your IP does a decent job explaining the pros and cons of an IVA v's BR to your creditors then then why woundnt they accept it.

Some of my biggest creditors didnt even bother to vote :-)

Its only been a week since my creditors meeting and I feel like I am at last starting to live again (cliche I know - but true) and I can now look to the future. What a relief that the 'should I, shouldnt I' - 'do I, dont I' thought's have now gone. Try to make adecision, stick to the path, the force is strong :-)