IVA Help Please

birchy1205

Hi

This is my first ever post so forgive any errors or missunderstandings.

I entered into an IVA 2 years ago, at the time I had unsecured debts of £70,000 after a disasterous couple of years and an expensive divorce. I have a good job and also act as a part time director for a company hence my need to avoid banckruptcy.

My IVA payment was initially set to £850 per month for the first year but last year after my review was reduced to £725 per month but extended for a further year to 6 years as I was still struggling. This has been manageable and I am due to have my next review anytime now and I am happy to keep to the arrangement.

However and this is my problem that I am worried about. My bank placed an overdraft on my account of £1500 and over the last few months i have used it regularly as my monthly wages always cover it and place me back in credit (for a few weeks at least!!) but as I am sure many of you know once you start using an overdraft its difficult to not rely on it every month and I am worried sick that my IVA will become invalid because of this, although I don't feel that I am worth banckrupting as I have no assets, my car is on a finance agreement (approved by the IVA) and I do not own my own property.

Has anyone any experience of this and advice on what I should I do? I have never missed any of my IVA payments since it was set up and if I can keep it to this level feel I can continue to manage. Any help please???

To_be_Free

Creditors will generally insist that you do not incur future credit which includes allowing your bank account to be overdrawn.
My IVA agreement states that I must not have any credit for the life of my IVA and an overdraft is credit.
I would ring your IP and check this out.

Cazliz

Hi Birchy
My first post too.
I am in an IVA and agree with the other poster. Thing is, you need to be honest with your IP and I would suggest you tell them how much you are struggling and maybe they can arrange a payment break to allow you to at least clear the overdraft. You really shouldn't be using it and a payment break may be enough to get you back on track.
Good Luck