My IVA was approved on 26th November but I stupidly omitted American Express charge card balance of £3000. Amex have now suspended my account after finding out from Insolvency register. I guess my IVA will now fail - what are my options?. It's been passed to their legal team.
I guess my I.P will find out. I can't go BR due to my job. I feel awful.
hi winter_blues
What was the reason for omitting it? if it was a genuine mistake then I'm sure your IP will be understanding.
As the debt was accumulated prior to you iva you may be able to include it in your arrangement - but it may well affect your final dividend - best thing to do is talk it through with your IP.
D
Your ip can add it to your iva if it only increases your total debt by less than the percentage specified in your proposal. If it is over this pc then your ip will call a creditors meeting to request a variation to add it in. Best sort it put quickly and put your mind to rest.
It is very unlikely that this would cause a complete failure of the IVA, but why was the debt left out? Did your IP ask you to confirm that all debts had been included at the time the proposal documents were signed off?
If the card was genuinely omitted by mistake there should be no problem. However, if the card was deliberately left out and there has been recent spending, Amex may not be too happy. My main query is how was the debt to be repaid since charge cards are cleared in full each month?
