Help please!

[e.h]

Hi I am not sure if my last message has been posted or not so here goes again. I just found out today that my partner has been using a mail order catalogue to buy clothes. We had the catalogue before we went into our IVA but there was a nil balance so we never said anything about it as the catalogue wasn't a creditor at that time. His argument is that it only costs the same amount each month as our clothing allowance and we have to have smart clothes for work. I also found out that his bank account comes with a £650 overdraft facility which he has been using. I am now worried sick about what is going to happen to us as obviously our IP will find out about these things. Help and advice please!!!

[aguise]

Hi Liz i can only say what I would do and that is to pay the overdraft of as soon as you can and the catalogue. Tell him to tell his bank to cancel the overdraft and close the account with the catalogue. Easy for me to say I know and maybe Mel could help with an IP's opinion. As you know you should not use credit but dont panic just try to get rid of it as soon as you can. Not your fault try not to worry I am sure it will be ok , but not easy to catch up when you are on a budget.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[e.h]

Thanks Aguise - this is what I thought as well. We are going to have to really scrabble around to pay it off as our review is coming up in October. In a way I do kind of understand what he is saying, that it costs no more than our clothing allowance but at the end of the day, credit is credit isn't it? I just don't think he has fully understood all the implications involved in an IVA. I might have to speak to my Dad to see if he can "lend" me the money to sort it out. I am just terrified that our IP will get wind of it before we can do anything about it all.

[aguise]

I know liz and I agree if you keep it to the clothing allowance it could be a good way of sticking to it but the trouble as you say is that credit is credit and we arent allowed it, also I have to say I think catalogues are expensive and the quality not wonderful. I dont think an IP would fail you for this epecially if you put it right asap and explain he didnt realise.
Hope you sort it soon

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[catullus]

Aguise is right that, all other things being equal, an experienced IP would be unlikely to fail an IVA on these grounds.

It's all about the slippery slope though. Once you've done this once, and got away with it, then the next time there are difficulties it's all too easy to fall back on the credit facility and eventually become dependent on them.

Best to try and get them removed/stopped asap

[MelanieGiles]

If you were my clients, I would be relatively happy with the catalogue, as I feel that if the orders made are being funded by the clothing budget then this is acceptable expenditure. However, the overdraft is a problem, and if you could get a family member to pay this off this is probably a good idea.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[e.h]

Many thanks once again to all who have taken time to listen to my fears! I am beginning to wonder how on earth I coped without this wonderful forum. It certainly makes me feel better knowing I am not alone.

Take care one and all.

Regards

Liz
x