used credit card before IVA

[georgie14]

as i have explained on previous posts we have found ourselves in a very difficult situation very quickly due to job loss and illness in the family so are now having to look at options (IVA or bankruptcy)

however as this was sudden and not expected we have up until two weeks ago been using the credit card - never missed payment or had any intention to do iva but how will the IP/creditors view this?

will we get in trouble? will they refuse IVA because of this

thanks

[Sarah1967]

I would think it's ok. I believe you just need to make sure you don't use credit once you've decided on an IVA. I was using my credit card (didn't have much choice), right up until the week before I was in touch with the IVA company

[kallis3]

Hi,

As soon as you realise that you are insolvent then you should stop using the cards. The vast majority of us stop paying our creditors (phone calls and letters are a nuisance but still!) and use that money to build up a contigency fund or to help us out with normal payments whilst sorting out the IVA.

[Sarah1967]

I stopped using credit as soon as I found out I could apply for an IVA. Like Jan says, once you stop paying creditors (and boy, was that a scary prospect!), that 'extra' money can be used to live on and put by ready for living without the need for credit.

[georgie14]

so was nothing said to any one about using the cards up until IVA decided, we wont use our cards now we know there is a serious issue but as we didnt know we didnt think anything of using them.

[kallis3]

You won't have a problem lola - most of us used credit up to the point of admitting defeat.

[Broke of London]

Hi Lola - there's nothing to worry about. We all used credit right up until we realised there was a big problem even if it was just the overdraft!!

[Skeef143]

It really won't make any difference - I booked some hotels with my overdraft about a fortnight before I called about my Debt Management Programme, in a fit of panic I called the DMP people about it!! But if you've never done anything like it before, you don't know, do you?

[kallis3]

My overdraft was so bad that as soon as I was paid it was pretty much up to limit!

Makes me shudder now just to think about it!

[Shining]

I used credit up to the point of contacting an IP, all my debts were up to date until that time too. Do contact two or three companies to get some case specific impartial advice. All the best. x

[footiemad]

Same with me Lola x

[Broke of London]

LOL Jan - my overdraft was the same as my salary. I thought it was great if I had £1 on payday! Until my iva I hadn't seen a positive balance in a decade!! Thank God no more mental arithmetic at the cash point!!

[kallis3]

Tell me about it!! I'm surprised any of my bills were paid to be honest - it just got to the point where they would take the money out for their loan, put it back because there wasn't enough to pay it and then charge me for doing so which made the overdraft even worse!!!

[plasticdaft]

We were using cards to live on right up until we made contact with an insolvency firm. As soon as we decided on the way forward the cards were destroyed. What a day that was!!!

Paul

[kallis3]

The majority of mine were long gone as I was in a DMP. I stupidly kept two which had a nil balance and then ran them up again before needing to look into an IVA.

How stupid was I!