Help! - hoping to do an IVA but until then...

MeestaDimples

Hi there,

I have spoken to Payplan this week about my finances and with their recommendation and research on here I've decided to apply for an IVA. They've told me the process can take up to 8 weeks (and no guarantee the majority of creditors will agree). In the meantime I am unable to to repay my creditors the full monthly repayment. I understand that I can write to them and make a token payment. I am just a little unsure as to how to word the letter and what would be an acceptable token amount (e.g I usually repay Cahoot £175 a month but can only afford about £30 this month). Until now I've not fallen behind with any of my repayments but unfortunately my circumstances have chanegd drastically.

Any advice will be greatly appreciated.

msflowerfairy

My OH and i have just done the same through Payplan.
Payplan will send you a pack, and in the pack is a template letter.

We have sent all of our creditors £20 each as a token payment along with the letter, as advised by Payplan, and we have received no nasty letters at all.

Good Luck!

james32_uk

When you do not make the full payment you default. Token payments are suggested as a goodwill gesture, but there's no point in paying more than £1 or £2 unless it makes you feel more comfortable. Youd be better off saving some cash under the bed for the hard times ahead.