Taken out more debt whilst in an IVA

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david467
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by david467 » Mon Sep 24, 2018 4:13 pm
Hi
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.


Many thanks
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Foggy
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by Foggy » Mon Sep 24, 2018 4:33 pm
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.
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luluj
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by luluj » Tue Sep 25, 2018 5:08 am
You need to speak with your IP and explain and then it is in their hands to inform creditors and agree a way forward.

Fully appreciate your reasonings and recognise time in an iva is very stressful but am somewhat surprised you were able to take out a loan of that amount with an iva recorded on your credit file.

I think you need to be prepared fof your iva to fail abd to consider other options such as bankruptcy may be.
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Lisa Thomas
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by Lisa Thomas » Tue Sep 25, 2018 9:38 am
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?
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kallis3
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by kallis3 » Tue Sep 25, 2018 11:30 am
I agree -how on earth did you manage to get a loan like that?
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david467
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by david467 » Tue Sep 25, 2018 2:46 pm
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.

thanks for the replies
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