overdraft and iva

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smart2207
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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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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.
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Lisa Thomas
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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?
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Lisa Thomas
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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.
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Foggy
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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.
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Foggy
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by Foggy » Wed Mar 21, 2018 4:25 pm
Posts moved and merged.
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kallis3
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by kallis3 » Wed Mar 21, 2018 4:50 pm
Agree - not a good idea to use that.
smart2207
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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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by smart2207 » Thu Mar 22, 2018 9:54 am
should i pay it back if i get any funds in few days?
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kallis3
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by kallis3 » Thu Mar 22, 2018 10:20 am
What bills are they and where would you be getting funds from?
smart2207
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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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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.
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kallis3
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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.
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Foggy
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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.
smart2207
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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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