I am just wondering how much bank statements are studied when having an iva review. I am often worried about withdrawal sums of cash from my account incase my ip questions it if spotted in my statement. For example if I withdraw £100 in cash would that be looked at in a negative way? What about £20, £50 etc? whete do you draw the line? Also I am scared of purchasing things with my debit card. For example last month I had a friends wedding 200 miles away so I needed to book two nights accommodation which cost £130. I didn't want this showing on my statement so got my patients to pay for it on there card and I have them the money back in bits over the next month. I am the same with things such as clothing or a pub meal!
Just how far do I have to go in these kind of circumstances?
We do not ask for bank statements and how you spend your own money is entirely up to you. You have your allowances plus your share of overtime, bonuses etc and if you want to save up and go on holiday that is nobody's business.
Enjoy your pub meal and I believe you are overthinking the annual review.
You should be using your bank account as normal and should not have to worry if you've booked a night in a hotel! When your IP looks through your bank statements, they're just looking to prove your expenses such as electricity, gas and other utilities etc. The fact that you've withdrawn £100 really is not a big deal.
One thing which you would be questionned about would be say if all of a sudden you had a massive amount of money into your account from another source, they'd want to know what this is for. What you spend your 'allowances' on is up to you.
Say I saved up for a night out with friends, a stag night, birthday party or something and I paid for drinks at 4 or 5 bars on the same evening with my debit card, would they not even question that kind of activity?
It is your money to spend how you see fit. Provided it does not impact on your IVA payments and the money comes from your allowances, overtime, bonuses etc, it is up to you how to spend it. IVAs are not supposed to be a punishment and IPs are not to act as 'Big Brother'.
Hi michael
What a reassuring post. I remember feeling so scared using my debit card for hotels or even online shopping when I first started my iva and even towards the end was worried it could be misinterpreted when I was due a review. It would be good if all ip's made this clear to their customers. I definitely worried that dfd was big brother!!
Cm
Hi Guys, I'm 3.5 years into a 5 year IVA and I don't think I've ever been asked for bank statements or for any proof of expenditure for items such as gas etc. As a previous post said, so long as you've declared what you're earning and are making the agreed payments, no one else's business! Go party!
I know how you feel Dan76. I am 4yrs into my IVA and am so anxious about withdrawing money from my account or using my debit card to puchase things such as holidays etc in case my IP questions it. I'm with DFD and you never know what they will ask of you from month to month so always like to play it safe. I tend to try to pay for everything cash so they can't see what I'm spending my money on thorough debit card transactions. If I need to pay for anything with a debit card I'll pay it into someones account and ask them to use their card.
Hi lost girl
Ive been with dfd and like you I was nervous about spending but I did not have any problems from them. I booked hotels and brought bits online. Esp when I saved my allowances for xmas presents so dony worry too much. Mind u when I did pay by cash I loced the feeling it gave me as pre iVa it was credit card all the way cos cash was taken up by minimum payments and loan repayments near the end.
Not long now. This time next yr and your done.
Cm x
Hi Dan76 - you raise a really interesting point that I think many more people worry about in the background so thank you for posting about it.
Exactly as has been said already - your money is your money. Some people withdraw all the cash they need after being paid for the month so they can budget properly. Others move across any surplus into a savings account. As long as all the income is declared and you are paying over what you are committed to in both IVA payment and additional earnings, then the rest is for you to manage exactly as you wish to for other expenditure.
I would imagine its been causing you some unnecessary stress trying to manage things the way you have so hopefully this will free you up to live as you wish to whilst still honouring the commitment of your IVA.
Let us know how you get on!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
I'm 5 years into a 6 year IVA with DFD and I felt the same at first... but then quickly realised nothing like that is checked and your money is yours to do with as you wish ... as long as you pay the IVA and conform with overtime uplifts etc then don't worry.
many people take out large sums at pay day and store it in the house as cash to budget... others budget in different ways ... it's up to you how you manage your bank account so please don't worry ... I go to the pub every week for lunch which I pay for on my debit card and by saving elsewhere! It's the little things like these treats in an IVA that really matter so enjoy yourself where you can
"Hope is the feeling you have that the feeling you have isn't permanent." - Jean Kerr
IVA approved Aug 2008 - 6 year term - last payment made 6 Oct 2014. CC received 14 Nov 2014.
I wish I'd have asked this question 3 years ago when I started my iva! For three years solid every time I have wanted to withdraw cash for anything I have been purchasing from the supermarket and getting cashback so it's looks like I'm spending more on shopping just so I don't get questioned about regular withdrawals or larger withdrawals. What a muppet
Ha Ha...well now you know! Enjoy the remaining two years in a different way....and think of all the forum readers in the background that you have helped educate by raising this important concern
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
My IVA firm doesn't ask for statements either - in fact in my proposal the wording states " annual review of income " so P60 and pay slips are sent and that has been fine.
We rarely ask for bank statements to be produced, as we trust our clients to manage their money in a sensible manner and make true declarations of windfalls and additional income. Occasionally we ask them to be produced if someone has lost a wage-slip or two, as evidence of earnings.
