Zander1, Mrs Skint is right, you should not be getting any new debts after your IVA has been approved and depending on the terms of the arrangement you will probably be in breach of it.
Your income and expenditure should leave you with enough money to meet your monthly needs without having to resort to extra credit. If it does not then you should speak to the Supervisor of your arrangement, who may be able to go back to the creditors and ask them to accept lower payments.
If you have an emergency situation, it may be possible for the Supervisor to authorise you to take additional credit but only after he or she has been given the full details of the emergency and the proposed loan. Your Supervisor will want to be satisfied that it is in the interests of the IVA to authorise the loan (e.g. you need a new car to get to work) and that the payments are affordable. Depending on the circumstances your Supervisor may need to seek the views of the IVA creditors.
Any new creditor will not be bound by the IVA and will be able to take your to Court or petition for your bankruptcy, which could ultimately result in the IVA failing.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
You must seek permission from your Supervisor for obtaining any credit - most Supervisors will say no unless it is a compelling reason and discusses how that creditor is to be paid
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.
Um im worried because a debt i was unaware of before my iva is now asking for there money and threatening to take me to court.can they still take me to court as the debt was accrued before the iva but there asking for there money after the iva.i run a small business and im also worried about what will happen if i get into trouble with my new suppliers.
lots of sleepless nights i really appreciate your help
£2500. the creditors have made it clear they dont want the debt to be included on my iva and im worried if i tell my IP it may affect my current IVA as its already up and running
As far as I'm aware the creditors will be bound by the IVA. Hopefully one of the experts will be able to confirm this, but you really do need to speak to your IP.
Hi Zander.
If the debt was pre IVA the creditor may be bound by the arrangement even if they were unaware of it. Depending on the size of the debt and the effect on the original dividend the debt can be brought into the existing IVA without affecting it. As stated you must inform your IP but it may not be insurmountable.
It is different for your current suppliers. Are they aware of your IVA as you should not be incurring credit without the consent of your supervisor nor should credit be needed if the proposal and business are viable. Goods ought to be paid for cash on delivery or under very strict terms and the suppliers are entitled to know about your IVA if they are offering credit facilities.
Michael is lovely. He was my best buddy (and drinking partner!) when I lived and worked in Londonderry for two years(oops sorry Michael - Derry!) and is one of the best insolvency managers I think I have ever had the privilege to work with.
I must say that it means a lot to receive a compliment from Melanie who you are all aware is one of the best IPs in the business. And trust me she is one of the best drinking buddies that you could have too.
We had a new debt after the IVA was agreed and have to pay it separately. My husband was leasing a car for his job as a taxi driver. He had to give his job up due to heart problems so we gave the car back to the hp company. We thought because he had paid more than half the term of the lease we wouldn't owe any more money. But because they took so long to respond to our letters we owed another monthly payment of £400 and £1300 for supposed repairs to the car. ( a slight dent in door and damage from taxi roof sign). We now pay £20 a month until IVA is finished then will pay the rest.
