we are in a iva and nearly completed our first year in march we have defaulted by having a overdraft of £1000 which we cant seem to get down no matter how hard we try we are now four payments behind our mortgage aswell due to my husband not having a job which he now has and only gets paid per job on completion then has to invoice ,wait for cheque to come then wait for it to clear. we need to get in front of ourselves with money which we know we can do over time.my question is when the iva is up for reveiw and we have the overdraft which they can see we have defaulted what can happen ? i dont have any equity now in my property will they let us carry on with the payments so they still get something or will i lose it all please help !!!!
You need to inform your IP of this overdraft, as obviously you should not have taken it out whilst in your IVA.
Are your IVA payments up to date, or have they fallen behind?
Your main worry at the moment should be the mortgage, as you are likely to have the house repossessed if you fall much further behind with the payments. Have you spoken to the mortgage company?
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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At the end of the day this is not the end of the world - but do tell your IP about this right now so they are prepared. If the O/D limit is £1,000, and the bank are happy to allow this to continue, you are not really worsening the position for creditors, and the facility could be chipped away by paying a small contribution each month - even £10 would help, and of course it could be cleared at the end of the IVA.
But please don't borrow any more money whilst you are in an IVA, as this will just get you into hotter water.
You need to sit down and discuss the way forward with your Supervisor (IP) and see whether you can take some payment break informally with your IP consenting or by way of a variation proposed to your creditors because of your changed circumstances. Good luck and let us know how you get on.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
