thinking about BR because I've just lost my job

[jodo]

Hi, I'm in the middle of my IVA and am thinking about BR because I've just lost my job. However, during the time of my IVA, I used a couple of credit cards, one of which was obtained during the course of my IVA. DO you know how much trouble this will cause or what will happen because of this? As I really want to get the BR sorted asap
Thanks

[Michael Peoples]

The OR may take a dim view and could seek a bankruptcy restriction against you. Regardless, the use of credit without the IPs sanction would almost certainly lead to a breach of your IVA so you should speak to your IP before you decide to petition. It may be possible to get a variation for a payment holiday but creditors would also have to forgive the unauthorised credit.

[jodo]

Hi, thanks for your answer, at the moment my IP doesnt know about the additional credit and to be honest, I'm a bit scared about telling them now! I know it was wrong, but I don't know what will happen if I petition for bankruptcy because I'm assuming they will find out. I don't really want a payment holiday because I don;t know when I'll get another job. Thanks

[johnB]

I think bankruptcy would be the best option (not that I am an expert), if you don't have much/any redundancy pay to keep you going to you find a new job?

Regarding the credit cards, I am amazed you managed to get one? I couldn't even get a basic bank account with Barclays!!

If you want to carry on with your IVA, best be honest with the IP and tell them you took out credit. See if they will "let it go". How far into your IVA are you?

[jodo]

The IVA doesnt run out until june 2013, and theres not a lot of money to keep me going at the moment!

[MelanieGiles]

I would anticipate that this would result in a restrictions order being made against you - and you really should tell your IP about this soonest.