overdraft and iva

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smart2207

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Post by smart2207 » Wed Mar 21, 2018 2:24 pm
hi, can i use all overdraft before iva application and include in iva.

smart2207

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Post by smart2207 » Wed Mar 21, 2018 2:29 pm
can i use all overdraft and taking cash out before iva, will help in emergency fund, guess they will freeze the account once iva started.

Lisa Thomas

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Post by Lisa Thomas » Wed Mar 21, 2018 2:48 pm
smart2207 wrote:
hi, can i use all overdraft before iva application and include in iva.
You should really submit your own post separately.

You are at risk of the Bank rejecting your IVA on the basis you have purposely increased debt when you are insolvent.

How much is it?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Lisa Thomas

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Post by Lisa Thomas » Wed Mar 21, 2018 3:08 pm
If the bank account is in credit you have to disclose this asset to your creditors.

Depending on the sums involved you could propose to keep it.

What you can't do is not only spend the asset but also incur another debt/creditor by also spending the overdraft.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

Foggy

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Post by Foggy » Wed Mar 21, 2018 4:18 pm
If you have already started the IVA process, you are aware that you would be unable to pay back any credit you take out now ...... taking credit without the intention of paying it back is an offence and, I would suggest,is not a good idea.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

Foggy

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Post by Foggy » Wed Mar 21, 2018 4:25 pm
Posts moved and merged.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

kallis3

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Post by kallis3 » Wed Mar 21, 2018 4:50 pm
Agree - not a good idea to use that.
http://kallis3.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.

smart2207

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Post by smart2207 » Thu Mar 22, 2018 9:48 am
thx all overdraft is 200, paid bills total 175, as i needed urgent to pay and only option was to use overdraft, iva application already submitted.

smart2207

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Post by smart2207 » Thu Mar 22, 2018 9:54 am
should i pay it back if i get any funds in few days?

kallis3

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Post by kallis3 » Thu Mar 22, 2018 10:20 am
What bills are they and where would you be getting funds from?
http://kallis3.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.

smart2207

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Post by smart2207 » Thu Mar 22, 2018 10:42 am
bt and water bill paid, and expecting tax credits money next week

smart2207

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Post by smart2207 » Thu Mar 22, 2018 10:44 am
kallis3 wrote:
What bills are they and where would you be getting funds from?
should i pay back if i get funds next week from tax credits, i used overdraft as i needed urgent bills, did not have much cash to cover, MY IP already added overdraft in creditors list.
so should i leave it as it is now, or should i clear overdraft next week, if they dont freeze account.

kallis3

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Post by kallis3 » Thu Mar 22, 2018 10:50 am
If it is included in your IVA proposal then it should be left as it is.
http://kallis3.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.

Foggy

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Post by Foggy » Thu Mar 22, 2018 10:56 am
I would leave it as it is --- you don't want to favour one creditor over another. I think, as you used it for essential bills (rather than a big night out) it should be OK.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

smart2207

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Post by smart2207 » Thu Mar 22, 2018 11:14 am
Foggy wrote:
I would leave it as it is --- you don't want to favour one creditor over another. I think, as you used it for essential bills (rather than a big night out) it should be OK.
thanks all for support. IVA was the first option, hope it goes successful, if not i have last option is going to file bankruptcy, as my debts are over 50k and no assets. my IP advised 15p/£ to creditors. if they dont accept guess will get nil if i go bankrupt.
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