Credit during IVA

[pbarker]

Hi

I've had an IVA for roughly a year now - has been really good for me, have had no problem making payments etc... However.

I've just had a very unpleasant phone call from my IVA company explaining that a store card company has been in touch and told them i've taken out new credit

I have had a store card with comet for about 3 or 4 years, I told them about it when I took the IVA out but only had about £50 outstanding so I told them i'd settle it myself - they said this was fine

But last month my monitor blew up on my PC, and I do some work from home, I decided as i've just moved house to buy a tv/monitor combo for £600 from comet and pay it back over 3 months. I can afford to do so due to a pay rise at work recently (which I also told them about and they said not to declare it till my annual review)

Now they've rang up and told me that by not declaring the card I broke the terms of my IVA, and by taking out new credit I have broken the terms again (wasnt aware!)

I can afford to pay off the card before march myself so whats my best course of action from here?

[pbarker]

Sorry to reply to my own topic - but also...

My car was worth £2500 when I took the IVA out - they said this was fine and I could keep it etc..

However the car has done 152k miles - it breaks down fairly regularly and I dont think will last much more than another year

If we are supposed to give 100% of our spare income to the IVA, and never have any savings - what happens when my car finally dies and I have no money to fix it?

[Maz]

Hello Fuzzy

I am also in an IVA - 4 months now and this sort of situation does makes me panic also! We are not meant to have any credit while in the IVA but I am sure in exceptional circumstances like yours you will need to contact your IP or whoever is administering your IVA to see what they can arrange. Also you should have been informed when you took out the IVA that you pay 50% (usually that's the case)of any pay increase or bonuses towards your IVA. But do call your IPA and explain your circumstances and see if you can come to some arrangements for your car.

Maz

[BECKY]

I have seen cases where people in ivas have used there catalogues to buy clothing I think as long as u pay it off asap it shouldnt be a huge problem . It really depends on ur ip .

[Adam Davies]

Hi fuzzy
You are not allowed to take further credit in an IVA,However what's done is done and I would suggest speaking to your IP and paying the debt off as you have described and then cut the card up.
With regards to your car you should have an allowance for maintenance to cover the cars upkeep.If your car does need replacing then it is possible to ask your IP for a payment break,normally upto three months to fund a new vehicle but the missed payments would be tagged onto your IVA.
Interesting that the finance compant contacted your IP,not heard of that before
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Hi Fuzzy

You are allowed credit whilst in an IVA but only with your IP's express permission. Where you have gone wrong here is not talking to them about your intentions. It is quite usual for finance companies to advise IP's of unauthorised credit taking.

With regard to the car, talk this through with your IP - but they are unlikely to agree to any sort of commitment in this regard until the car is off the road. Try and save as much as you can in the meantime, as you can find quite reliable cars relatively cheaply to tide you over until the IVA has concluded.

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

[pbarker]

Thanks for all the advice

So my best course of action is to send them the card cut up (as they have requested) with an apology. Pay the card off asap (I've just sold a lot of stuff on ebay after moving house so should be able to clear it in 2 months)

And then if I have had a £200 a month pay increase - the IVA people are probably going to want another £100 a month towards it?

That would be ok with me..

[MelanieGiles]

Seems a sensible way forward, but do discuss with your own IP.

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

[ray_a]

As for the car issue i raised this subject whilst entering into an IVa as I require a car for the work I do.

I was told that as longing I requested permission it would be possible for a car to be acquired by finance.

Is that possible or was it wrong advice initially?

[MelanieGiles]

Good advice Ray!

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