I would have thought the solicitor would have checked the insolvency register before paying out but regardless I think you have done nothing wrong. I can only agree with Melanie that the expenditure does seem justified and if we required we would probably call a quick variation to get creditors to approve what we agreed.
I assume its pretty straightforward Michael? I was so anxious , but I've advised my IP in writing and am awaiting a response.
I've warned no one to touch the remaining monies in the account until I've heard back from the IP what ever the time scale.
I'm willing to save some monies extra each month and by the end of the IVA knock the £2600 "spent" monies off as I want to be honest with the creditors trhoughout.
Just out of curiosity as I work in finance and am on a learning curve at present I assume if a client did something "wrong" durin IVA the IP would have to serve them with a breach of notice before they'd fail the IVA before anything went wrong? Also if someone ever was made personally bankrupt and had a property with negative equity I assume they official receiver wouldn't touch the property , assuming all mortgage payments have been made to date, as it wouldn't be worth anything to them??
The IP would issue a certificate detailing the breach but you have an opportunity to rectify the breach before a meeting is called or the IP moves to terminate or issue bankruptcy proceedings. However, I would find it highly unlikely that this would be necessary and if a meeting needs to be called I am sure creditors will not ask for bankruptcy in the case of a genuine mistake.
Ultimately, you have done nothing wrong and creditors will not cost themselves money by demanding your IP petition for bankruptcy.
