What would happen if it was found that a person had lied within their proposal of the IVA ?

[Daisey.69]

Can I ask what would happen if it was found that a person had lied within their proposal of the IVA which was agreed at court and its subsequently found they had significantly inflated or even made up monthly costs to reduce their overall monthly disposable income figure ? (i.e the overall disposable income is over £1000 greater than believed)
Is this a criminal offence and are people prosecuted for this ?

[Adam Davies]

Hi

I believe that it can be a criminal offence, not sure if prosecution would follow though

Regards

[sponge]

Five years is a long time to keep a fabricated I&E up. For me it's a question of measure, you have to live after all, so not skinning yourself is all for the good but the morale measure is doing the right thing and paying your due's too.

I think the downfall of IVA's will be the introduction of secured loans, the industry does itself a dis-service and it will be the creditors that suffer. My crystal ball says one way or another, they’ll be far less IVA’s with assets attached to them in the future wahoooo!

[MerlinL14]

Didn't someone once say "the best way to a cure is to admit you have a problem". If they can't admit fully that they have a financial problem and continue on a road of deceit, then it is them who are fooling themselves that an IVA was the best course of action to control and clear their debts. Sometime 'stuff' just jumps up and bites you clear in the derriere...

[plasticdaft]

Imagine the scenario where 4 1/2 years into the iva the person is found out. The iva firm could in theory ask for the extra backdated amounts due. Given the 1000 figure quoted they could be looking for 54,000!!

A fraudulent iva application I suppose could be cancelled leaving someone back at the mercy of their creditors.

[MelanieGiles]

I had client once who lied about some of her creditor claims, and she was prosecuted and ended up having to do 120 hours community service along with a criminal record.

It really isn't worth it in the long run.

[luluj]

You enter an iva wanting to repay your creditors as much as possible ....to do this you have to be honest with yourself and your creditors! Setting the I&E has to be realistic to provide a modest standard of living, whilst maximising return to creditors. Annual reviews will be done, where bank statements may be requested .... Direct debits will be seen! Fabricating expenses will not help in the long run and you have to be honest ... An iva is not an easy option, it allows you to pay back to creditors as much as you can over a periord of time whilst learning to budget and living within your means.

[ClareSilver]

Playing devil's advocate here....... Why give a hairdressing allowance to a bald person, isn't that lying? However, hairdressing is an allowable expense in an IVA......

[Shining]

When working out your expenditure surely it's up to you to put down what you spend. Some IP's allow a smoking allowance which always creates a forum debate, however I don't smoke and never claimed this but could've lied. It't up to the individual to be honest and up front with your IP.

[Michael Peoples]

If the bald p[erson wants to spend their hairdressing allowance on cream for their head there is no problem. Allowances are there to be spent as the client sees fit. The allowance for Sky is currently £26 but I know many clients use other allowances such as sports and hobbies to top up and include Sky Sports/Movies.

Regardless this is totally different to lying to creditors and making up expenses as suggested by the original poster.

[plasticdaft]

Not everyone wants to repay as much as they can to creditors. Also many middlemen will happily fudge expenditure one way or the other to suit.

its easy to see how someone could get sucked into making a false expenditure claim.

its not right but it does happen.

Paul

[Adam Davies]

Hi

Is that magic cream Michael ? let me know where I can get it ?

Laughing aside us follically challenged guys still have to have our hair cut [shaved]

Regards

[Michael Peoples]

Hi Andy.
The same cream as Wayne Rooney and Shane Warne used except I doubt if you could get it for the £12 per moth that the CCCS allows!

Maybe the allowance would stretch to sun cream.

[Foggy]

I make Andy look like a hippy ( hair-wise ) yet, between us (that's the ex and me, not Andy and me!), still had a hair cut allowance -- however that didn't go near what the ex spent on just hair cuts for herself and Little Foggy. I had to make do with a polish now and again!

[Jules79]

£1000K a month is an excessive amount of surplus, personally I would be worried each annual review that I would be found out, I worried over our sky bill! I feel its one of those 'accepting responsibility for the consequences of your own actions'
Our IVA has taught us valuable lessons, our debt wasn't solely down to us over spending, we were too generous our family kept taking we kept giving to our own detriment. I would seriously be considering where I was going with the deceit and whether its worthy of a fraud/criminal case???

There are some exceptions though as Michael pointed out, we use our hobbies/sports to top up our sky. We don't go out and can't always afford a cinema trip with the kids so Friday nights are now pizza and movie nights.

Our family of 4 have a haircut budget of £21, mine alone costs £26. I think if we all adhered to the exact allowances we would all walk the IVA hair cut of shame haha!... What do you want doing this time Jules??? Erm an IVA special please! Out comes the bowl and garden sheers