Yearly review and store cards

[lairdybird]

Hi There,

I have just completed my first year of IVA with my husband. we are due for the yearly review. when we started we included all our creditors apart from two store cards with a 0 balance. In the past year we have had to use them a little (not huge amounts one is mothercare and having a new baby sometimes needed supplies) will the IP ask to see bank statements and have we breached anything??

Any advice would be greatly appreciated.
Thanks

Becky

[ivoriva]

Im not sure exactly what they ask for, it will definately be wage slips but that maybe all if you arent asking for a change of expenditure. Maybe an expert can clarify this.

As for store cards, you shouldnt be obtaining credit at all unless you have the permission of your IP. I would say the sensible advice is dont use them and close the accounts to avoid any further problems.

If you have an annual payrise and you are having to pay this into your IVA you could offset this with the need for more expenditure for essential items so you get to keep the payrise, and hopefully that would cover your needs. Else you may be able to get the IP to lower your payments slightly to cover for the additional expenditure. Depending on the terms of your IVA, you could agree to offset these reductions by paying an extra few payments at the end of the IVA if it cant be done by keeping the some or all of an annual payrise.

Hopefully an expert can give you some further information, or let you know if my advice is incorrect...

[Adam Davies]

Hi
I,m afraid that your not allowed to take any credit,other than utility bills,whilst in an IVA.
If you speak to your IP I,m sure that they will be sympathetic and work out a way for you to reduce the balances to zero.
You must cut up those cards now.
At your review bank statements are not normally asked for,its more proof of income thats required.You will also fill out a new income and expenditure form
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[lairdybird]

Thanks for your advice, I think I will cut them up and just continue paying, the balances are not huge and would be able to clear them with the 50% of my sales comission that we are allowed to keep.

Regards

Becky

Becky

[Adam Davies]

Hi
That sounds a sensible way forward.
Regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

How much do you owe on these store cards, and did your IP know that you were being left with cards with 0 balances? If so, then I am suprised that you were allowed to keep them as open accounts.

You understand the default you have caused, and should ensure that no unauthorised credit should be taken in the future. You must discuss the implications of this immediately with your IVA Supervisor. Using your share of the additional income is a good way of getting them repaid - as quickly as you can.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[lairdybird]

Hi Melanie,

No the IP did not know about these, to be honest they were just in a draw somewhere and I never even thought about using them UNTIL I found them months later and then did start using them. Do I need to discuss these with my IP or can I just cut them up and pay them off? I think in total there is about 850 pounds between them.

Thanks

Becky

Becky

[MelanieGiles]

Hi Becky

Not a huge amount - but the principle is the same! I would mention this to your IP, simply so he can see that you are being honest, and get them paid off as soon as you can.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Oliver]

Using credit outside of the permission of your Insolvency Practitioner would be outside of the terms and conditions of your IVA. It is therefore imperative that you contact your IP asap to explain the situation and also put forward your proposal of using your overtime money to pay these off.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva experts]

Just to echo what has already been said, I agree that the best course of action is to contact your I.P.

Honesty is the best policy.

Hope this information is of use

Regards. IVA Experts