I am 3 yrs into an IVA, stupidly I have taken out further debt amounting to circa £20k, I have been told that I should tell my supervisor but before I do, I just wanted some third party advice as to what the implications are going to be.
The loans were taken out during a spell of depression, which lead to some of the money being used for surgery due to excessive weight, and a large chunk for a spell of gambling also brought on by the depression.
The chances are that the IVA will fail, taking you back to square one. This will see the last three years wasted. However, if you keep quiet and it is discovered at following reviews, or at the final review, the IVA could fail then .. taking you again back to square one, but wasting 4, 5 or 6 years and payments.
It is possible that the IP and creditors will be sympathetic but I doubt that the new loans will be added to the arrangement and fail to see how you will be making payments going forward having to service both the IVA and the new debt.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
I agree -how on earth did you manage to get a loan like that?
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. http://kallis3.blogs.iva.co.uk
Lisa Thomas wrote:I can't understand how you could have borrowed another £20k from a commercial lender with an IVA in place - that's highly unusual as your credit rating should be too severely damaged.
I'm afraid you need to come clean with the Supervisor, if for no other reason than you can't include the £20k in the IVA so the new debt will need to be dealt with anyway.
Bankruptcy may be unavoidable so you need to be prepared for the ramifications of it.
Do you have any assets to lose, such as a property?
I have no assets other than a car valued at around £2500(we buy any car.com) however i need a car to get to work due to its rural location and start times.
I have no idea how i was accepted for the loans, they came up as offers on Clearscore, which have my address, the same address that the IVA is registered to. All i can think is that the IVA wasnt showing on my credit file at the time of the offer, The questions they ask do not include anything regarding insolvency, although i know that i knew i was.