IVA query

The_Nudge · 4 February 2019 at 9:59PM

Hi,

I am currently going through IVA process.

The creditors meeting will be proposed this week with a meeting taking place between creditors an IP in a couple of weeks.

I currently have a Personal Loan of over £300 a month which is due next week (before Creditors meeting)

Would I be able to cancel the direct debit without making contact with my creditor or should I call the creditor and explain my financial difficulties.

My creditor doesn't have a facility for a 'payment holiday

Thanks in advance

mwarby · 4 February 2019 at 10:52PM

I'd say you should be asking your IP firm this

Personally I'd cancel the direct debit, as for me the IVA was a genuine alternative to bankruptcy, if proposal is accepted the payment won't matter (IP may ask for it to be put into IVA though, so don't go wild with it). If your proposal is rejected you'll need to save for BR fee

If you cancel the direct debit, you should also cancel the direct debits for all creditors, so your not seen as giving any creditor preferential treatment

If you have an overdraft or credit card or any loan with the bank you use for your current account it's also worth moving banks. There is IMHO a lot to be said for not using the switch service, and simply setup direct debits you want to keep(ie those that arent for debts) on the new account

I recall that I phoned or answered phonecalls from the creditor just once or twice and told them of the plan to enter an IVA, any more persistent calls I just blocked the number. The lenders are obliged by the lending code to give you breathing space see page 32 of https://www.bba.org.uk/policy/retail/credit-and-debt/lending-standards-and-guidelines/the-lending-code/

sourcrates · 4 February 2019 at 11:32PM

This is my complaint about some IVA companies, they should of told you to stop paying your debts weeks ago.

If your in the early stages of organising an IVA, then why on earth are you still paying them ?

You need to be saving up an emergency fund, why waste money when in a few days you will potentially be insolvent, has this not been explained to you ?

The_Nudge · 5 February 2019 at 12:10AM

Thanks Sourcrates

They said if I can afford to pay then continue to pay until IVA is approved?!

Or I could cancel direct debit and when they ask why, could tell them that I'm going through an IVA?

Craig1981 · 5 February 2019 at 7:29AM

cancel all your debt payments and give all your creditors your IVA referenc e(which you should have if meeting is happening shortly

mwarby · 5 February 2019 at 7:37AM

The_Nudge wrote: »

They said if I can afford to pay then continue to pay until IVA is approved?!

There's a strong argument that if you can afford to pay (treating all creditors equally), then an IVA maybe over the top for your debt issues

IVA query

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