www.iva.co.uk

Hi all,

I've had my IVA since the beginning of the year and things are going pretty well. There are sometimes occasions when things are really tight, but generally I'm a lot happier than I was before.

My question is that I may need to travel overseas for my work. I would have to pay out for my meals etc and then claim back later.

I have a credit card which has zero balance on it, am I allowed to use this up to £500, as long as it gets paid back? I wont be using it for anything else. Is this 'legal'?

Many thanks

Hi fusion,

I don't think you should still be holding a credit card at all in an IVA regardless of whether or not it has a zero balance.

I doubt if you would be able to use it. A company credit card is ok, but not a personal one.

One of the technical experts should be able to advise you further.

You can use credit during the IVA, so long as it is with your Supervisor's permission. So it may be possible to use the card, but only when you have explored other angles such as your employer's providing you with a float.

thank you for the advice both.

Melanie, would you mind explaining what the £500 limit is all about. And should I really have declared the zero balance card when I set up my IVA?

Many thanks

Hi
I think the £500 comes from wording in some IVAs that state that the debtor must not take any credit over £500,excluding utilities,without the supervisors permission
Regards

Andy is correct with regard to the £500 limit, and you need not have declared the zero balance as it was not a debt at the time of the IVA, although I would have highlighted the fact that you had the facility available and would it be in order to be used for the purpose of financing up front business expenses should the need arise.

Apologies Melanie, I thought you had to get rid of any credit cards when you did your IVA, and certainly that you wouldn't be able to use one.

Only in very exceptional circumstances Jan - so you were more right than wrong methinks!!!

I still get letters from mbna and barlcays for cards that have been destroyed and have no balance on them,they have both had letters asking to cancel accounts as I am now in a trust deed.

I wonder just how many forests are destroyed with these pointless letters? Not very environmentally friendly are they?

thanks for all the advice everyone. Enjoy your weekend