Petrified of starting IVA

Fizz_Bomb

Owlet, thank you so much for your reply, I can't tell you how helpful this has been. Having a to-do list from someone is I think what I've needed.
I looked on the nationwide website but it seems it will only let me open that type of account if I've been made bankrupt. Is it best to go into the branch and do I need to tell them I will be beginning an iva?
Regarding missing payments, what can I expect from the creditors in that 2 month period? I guess if I'm prepared for the hassle and what to say I can cope.
Thank you for your Christmas advice, I agree, I used to love the smaller gifts when I was a child too.
Thank you so much once again.

owlet

I think the account is for those who can't get a mainstream current account, insolvent or struggling financially. When you apply, you have to tick a box to confirm. I would apply online and tick the box. It's not just for bankrupts.

Maybe hassle was the wrong word - you should only get "you've missed your payment " letters in a two month period. If you do get any phone calls just ignore them or say you are working with advisors for a solution. You don't have to say any more if you are looking to start your IVA that soon. If it's a longer period before you start your IVA then you can arrange to make a token payment of £1 each month.

Fizz_Bomb

Thank you, I've managed to open the account successfully online so at least that's a baby step for today. I am going to email Vincent bond tomorrow to let them know I'd like to wait a couple of months although I suspect he will tell me that it will make no difference.
You've really helped owlet, thank you

Fizz_Bomb

Just as a thought, since I bank with Barclays, if I suddenly empty my account and cancel all my direct debits and start not paying both my loan (Barclays) and barclaycards, are they likely to smell a rat a mile off and do more than send me non threatening letters?

owlet

Fabulous - that's great! You should get your new account details within a week. Remember to get your pay and any tax credits or benefits switched to the new account. With benefits it's a simple phone call and job done.

Vincent Bond may well say it makes no difference but for YOU it makes a huge difference. Getting that emergency fund sorted and working out a sensible budget it key to your IVA being a success x

owlet

Fizz_Bomb wrote: »

Just as a thought, since I bank with Barclays, if I suddenly empty my account and cancel all my direct debits and start not paying both my loan (Barclays) and barclaycards, are they likely to smell a rat a mile off and do more than send me non threatening letters?

In a two month period they probably won't have time to do anything more than send missed payment letters.

Lincsdebt

Fizz Bomb


You are getting lots of useful information here, I really just wanted to offer you my support.


I had to enter an IVA six years back when my debts got out of control. I ended up owing over £100k, a totally frightening amount. So I understand you're scared (I was freaked out), but want to reassure you that you will be fine, I can't see the IVA failing under your circumstances. Make sure you declare all your outgoings to maximise what you have to live on.


I received my completion certificate last week, it was a difficult six years, but in its way the best (although also only) decision I could make.


Good luck with it all, this forum is a real support so if you need help make it your first stop for sensible advice!

sourcrates

Fizz bomb,

Once you have filled in all the forms, your budget/expenditure etc, and sent them back to your proposed IP, the team dealing with your application will round off your budget and format it correctly, then include it in the initial proposal they will put to your creditors.

This will happen via a virtual creditors meeting, which usually takes place by phone, or a postal vote, as long as your proposal gives them the best return as a pose to another method of debt remedy, it will be passed, sometimes a particular creditor may ask you to increase your offer, in order to accept it, as long as the IP have done there job correctly, it should be accepted.

mwarby

Also regarding timescale, an IVA isn't the quickest thing in the world to setup. I can't remember exactly how long mine took but it was 1-2 months, some firms maybe quicker some slower.

Once the process of setting up the IVA started most creditors were very good at not contacting by phone (the pay day loan firms went though, but a call blocking app on phone sorted that pretty quick.)

As others have said no big rush, this will affect you quite a lot for next 5-6 years, may as well take a couple of months to get it right prep wise

adyj73

I think mine took about 3 months. Just remember you need to have your first payment ready for the day of the IVA meeting. I had to pay my first months IVA payment straight after the approval meeting so factor that into your budgeting

I would cancel all the debt payments now and offer token payments only of a pound. that way you can save up for Xmas and for your first IVA payment (save enough for two payments just in case)

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