I have 35000 pounds of debt 2000 pounds of savings

[popey]

Hi,
Im thinking of going for an IVA. I have £35,000 of debt with my partner. However I have £2000 of savings. Where would I stand if I used my savings to pay for some essential household items before entering into the IVA?

[johnpaul]

hi there popey welcome to the forum you would need to inform your ip before going into a iva as that £2.000 is a asset and if you close it down while in a iva it as to be handed over to your ip if you keep the saving account open until you finsh you iva then you will get to keep it if you need anything can i ask you can you get easy acess to it or is it one of these savings account with need notice on it

JOHNPAUL

[MelanieGiles]

You would just need to explain the reasons for the expenditure, in case a disclosure note was required in your IVA. I personally think it is a good idea to pay for these sort of things prior to an IVA being proposed, as it minimises the exposure to you having financial difficulties during the arrangement - but the spending must be reasonable and justifiable.

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

[Adam Davies]

hi
I always say to people that when their IP instructs them to stop paying creditors to use this money to get upto date with utility bills,council tax etc.
I would view this in the same way.
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