£500 Credit Limit in an IVA

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magicsam
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by magicsam » Tue Jan 16, 2018 11:43 am
Could I just ask the forum a quick question? Whilst in my IVA the paperwork indicated I did not have to inform my IP if I sought credit less than £500, does this mean you are allowed £500 in total over the lifetime of the IVA or £500 at any given time?
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Foggy
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by Foggy » Tue Jan 16, 2018 11:59 am
It is generally taken to mean you cannot owe more than £500 over all lenders at any one time, although an IP would be free to interpret it the other way if he felt that was what it means ! It could also be used to encompass ( and possibly used up by) monthly paid utilities and car insurance, so you could be there without even realising it.

I am afraid this explanation is as woolley as the clause in the first place, but, like so much of an IVA, it is open to interpretation.

Apart from utilities and car insurance there should, in any case, be no need to resort to borrowing ( which will be from sub prime lenders at eye watering rates if you can get it at all). If you need a modest sum for urgent repairs, for instance, you could ask the IP to agree a short payment break to cover it.
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magicsam
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by magicsam » Tue Jan 16, 2018 12:08 pm
Thanks for the response Foggy, that is how I interpreted it also. My Iva is complete now so I don't think I have anything to worry about as I never owed over £500 at any point but it would go over if totaled up over the lifetime of the IVA.
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Lisa Thomas
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by Lisa Thomas » Tue Jan 16, 2018 12:54 pm
If your IVA is complete and you have had your CC then the point is academic.
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magicsam
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by magicsam » Wed Jan 17, 2018 9:20 am
I foolishly took out some payday loans during my IVA and am now considering complaining about the companies involved, I just wanted to check whether it might cause me problems if it came to light I took them out.
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Foggy
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by Foggy » Wed Jan 17, 2018 9:31 am
magicsam wrote:
I foolishly took out some payday loans during my IVA and am now considering complaining about the companies involved, I just wanted to check whether it might cause me problems if it came to light I took them out.


Personally I would let sleeping dogs lie and draw a line under it.
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magicsam
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by magicsam » Wed Jan 17, 2018 9:35 am
On reflection I think that would be wise and is what I am going to do, thanks to all for your feedback it's been very helpful.
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