www.iva.co.uk

I am currently on a IVA, i entered one 12 months ago, now i have an overdraft which i did not think was a problem until earlier this week when my first annual review came up. My IP has said i may be able to arrange a monlthy payment with the bank to pay this back. But things are very tight as it is. I have a house on a shared ownership scheme which i own 25%. is there anything any one can advise?

Thanks Gordon

Hi Gordon, sorry to hear you're having a few problems. I'm no expert, but I know you're not supposed to have credit while you're in an IVA so you'll probably have to do some paying back.
The experts on here will be able to give you some more specific advice.
Good luck
C x

Was the overdraft a debt when your IVA was accepted and simply missed off the list, or have you generated an overdraft facility since the commencement of the IVA?

How much do you owe to the bank?

Hi, there was an overdraft of £500.00 at the time, but this did not get flagged up at the time. It is now at £2400.00.

Thanks Gordon

The debt ought to have been included in your IVA, and still can be but you will need to pay off the £1,900 post-IVA liability outside of the IVA. Was this discussed with you by your IP at the time you entered into the arrangement? And were you aware that the taking of unauthorised credit duing an IVA would cause a default?

Cant't ever remeber it being discussed at the time the IVA was taken otherwise i would have included it in the IVA. I was not aware the overdraft would cause a default until i had my annual revie earlier this week.

Thanks Gordon

I think that you and your IP need to come to some arrangement to settle this account as soon as possible to get your IVA back on track. And in the first instance I would definately ask the bank to cancel the facility to avoid further borrowings being taken out.