Credit Card debt after IVA agreed

[crazycat]

I had my IVA approved in April 2007 with all my cards and debts included but had one card linked to my bank account that i had never used, now 8 months into the IVA I have been using it for shopping, fuel, cash advances when short at end of month. I was managing to pay it in full for the first couple of months but it now has a balance of £2000. I know this is bad but it has taken me time to adjust to the harshness of living under a very strict budget missing out on most of the things you previously took for granted. The minimum payment amount is now at £45 a month which I could probably budget for. If i dont use the card anymore would my IP be able to find out about this if I never told him. I know telling is the right thing to do but i fear this would have grave consequences.

[MelanieGiles]

Hi crazycat and welcome to the forum

You should advise your IP of this so that they are informed, and take advice from them on how to deal with the matter. The taking of unauthorised credit should have received the approval of your IP, and would probably not have been granted.


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[pbeck]

It depends on how much work the IP does in reviewing your situation annually as to whether they would detect it. Normally they would ask to see your payslips and P60, it is unlikely that they would go through your bank account in detail to see if you've been doing things you shouldn't, the IVA fee regime doesn't really allow for time to be spent on that, but different IPs will have different policies on this. If you can still manage your payments, probably they won't find out unless you tell them.

Technically you will probably be in breach of your IVA by taking on credit while it is running, so if you don't trust your IP to be sympathetic you better not give him/her any reason to suspect that you have done this. If you can get a family member or relative to pay this off and you repay them once the IVA is over, that will probably be the best solution. If you can't, then you've lost £45 per month from your budget, which will be tough as there's no slack in IVAs for that.

Whatever you do, don't get any more in debt or your IVA would probably fail.

Philip Beck

Licensed Insolvency Practitioner and IVA specialist

[Emily]

Pbeck,

I have just looked at your business page from your profile. I may need some representation

[crazycat]

thanks for your replies, asking family for a loan is not an option, i have destroyed cards so i will not be using them for sure, its 2/3 months to my first review, i think i will wait until then and see what details are asked for and whether i can pluck up the courage to admit to my aborration.