www.iva.co.uk

Hi, I just wanted to know, what would happen if I got a credit card while in an IVA. If the company did a credit search and decides to give you one. ??

Thanks

If you haven't got the £500 credit clause in your arrangement and the agreement of your IP the IVA could be failed.

Good luck, I haven't managed to get one myself [:(]

My agreement has a £500 limit. I cannot obtain more than £500 credit without permission from the IP.

However, if I apply for a credit card and got a £1,000 have I broken the rules?

Some say yes but I beg to differ.

If you ask me if I'd lend you money and I tell you I would happily lend you £1,000 has anything been done until you take it?

Obtaining credit is an act of receiving money (hence the term "credit") under an agreement to repay it.

If you are offered £1,000 but never take more than £500 I think you're within the rules.

It really doesn't matter how much someone says they are prepared to lend you, it only matters what you take (the credit) and therefore commit to.

However, this is my opinion and I certainly would argue this strongly. Maybe an argument based on semantics...

If you got a credit card that was over the £500 you could always have the limit lowered if you're worried.

Life in an IVA without credit is doable, so best not to fink about it no matter how tempting it might be! All bar iffy payday loans & the like which can spiral out of control, no one will lend you a pencil your credit record will see to that.

Semantics apart Hubert, it boils down to what your IP thinks. You could win the semantics arguement and he can fail the IVA. Of course, you could then argue the case with the regulators, who are unable to reverse an IP's decision --- semantics maybe, but there are times to fight and discretion is sometimes the better part of valour.

Try and do without - but there is no doubting that a credit card is useful for certain types of purchases.

Check your proposal terms or with your IP first as you wouldn't want to breach your IVA and of course consider why you need the credit in the first place...

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

Semantics apart Hubert, it boils down to what your IP thinks. You could win the semantics arguement and he can fail the IVA. Of course, you could then argue the case with the regulators, who are unable to reverse an IP's decision --- semantics maybe, but there are times to fight and discretion is sometimes the better part of valour.

Well I cannot disagree with that Foggy..

I would not suggest rocking the boat.
However for anyone getting a credit card just make sure you request a credit limit under £500 and you'll be fine.

I have just written my IP asking if it's ok to have one. We are having a baby soon and will use it to shop online etc if approved. The plan is to clear it at the end of each month.

My terms seem to suggest that I'm allowed credit up to £500 but having come this far I'm not going to risk the IVA. I'm left with just two payments to make.

I will post here their response but of course the IP will take into account individual circumstances.

hwima - useful response, thank you for posting. Your IP may have wanted to know where you were finding the 'extra' funds from the be able to repay the credit each month....Although with only 2 months left it may not be worth querying. It seems that perhaps your disposable income may have needed a review and a decrease given the change in circumstances, rather than you having to obtain credit. Just a thought!