help please !

scaredtoask

i am now currently coming to my 2nd year review on my iva !
i have never missed a payment however the middle of last year i was struggling to pay my payments so i used a credit card that was still in my possession and
know it worries me that when my ip wants to see my bank statements it will show up the payments made to my credit company do i tell them about my stupidity ! which i solely regret even using what effect will that have on my iva ? i am currently paying £700 pounds per month on a debt 48000 which seems alot to me after reading other posts !

MIVAA

Hi Scared,,

Can I ask you how much you have borrowed on the card?

thanks

MIVAA

So_Sad_Angel

MIVAA wrote: »

Hi Scared,,

Can I ask you how much you have borrowed on the card?

thanks

MIVAA

Sorry to bring this up MIVAA but are you selling something? just noticed your website !!!

http://www.my-iva-adviser.co.uk/

woolysheep

Hi scared to ask. I got great help from MIVVA, he did not mislead me. The advise I got from him helped me immensely

MIVAA

So_Sad_Angel wrote: »

Sorry to bring this up MIVAA but are you selling something? just noticed your website !!!

Hi So Sad,

No, not selling, just advising that's all.

The reason I asked about how much money had been borrowed on the card was to see if it was below £500.

If it is below £500, then technically Scared has done nothing wrong - but if it is above £500 then obviously Scared would need to be advised as to how to deal with this issue.

MIVAA

scaredtoask

i borrowed 3600 i know i really shouldnt of done i am having sleepless nites worrying about my stupidity ! i dont know what to do !

MIVAA

Hi Scared,

Firstly, I want to let you know that this sort of situation is not unheard of, and that there are steps you can take which will get things back on track, so don't panic.

You have no real choice other than to notify your supervisor of the extra credit card debt, which will be a breach of the IVA.

The IP will inform your creditors of the breach, and at that time they will look to getting a variation agreed to the original IVA that deals with the new debt.

This could be done in different ways, such as the IP requesting the new debt be bound by the IVA, and introduces the new creditor into the IVA now. This would mean the credit card would be paid via the IVA contributions as are all the others. If the original creditors agree to this you may be required to increase your IVA's term by a few months to keep the original dividend payout, as your new creditor would be sharing the money you pay into the IVA - thus diluting their share.

Alternatively, your IP may try to vary the IVA to allow you to prefer the new creditor whilst you pay off the debt to the card. Obviously this would temporarily reduce the amount of money you could afford to pay into the IVA - so this too could result in an extension to the IVA term to enable you to catch up your reduced payments so that the original creditors don't lose out.

In either situation, I think it is likely that your creditors will be keen to allow the variation to happen, as well as your IP, because they all have a vested interest in your IVA's success.

So, approach you IP - explain what has happened, and discuss the options with them.

As I said at the beginning though, this is not the first time they will have dealt with this situation, so try not to worry - it should be fine.


MIVAA

scaredtoask

mivva

thank you so much for your help it has hugely helped i will tell my ip when i put my review details forward to them ! i am just worried that it will fail my iva ! but i can see where u are coming from re the extra debt ! i am no longer findin a struggle to make my payments i just had a stint of overspending during last year tough time personally problemns etc hence why i used the card to my total disgust but hey u live and learn i just hope they will see it the same way as u have explained it to me !!

thewad

How'd you manage to get or keep a credit card when on IVA.

John