failing IVA

onesugarplease

hi guys,
myself and my wife are just entering our last year of our IVA. when we did our last review in 2008 we were told it would be our last one. we've just found out that we are having another one now. trouble is, once we thought we had our last one we relaxed a little. i have a credit card, van finance and a catalogue. my wife has a credit card too.
our IVA is at about £800.00 a month and we were told that this would be the figure to the end. now what? once they find out we have credit what will happen to us?
have any of you had a similar experience? will they force us to go bankrupt~which is what we should have done in the first place.
they can't have what we haven't got after all!
we can afford the payments till the end if they stay as we arranged.
IVA should be avoided in my opinion.
please post your thoughts, especially if you've had similar happen to you.

doelani

The only person who can give you an answer is your IP.

When you enter and IVA you agree to not take any credit while in it , you would have broken the terms of the IVA by doing that and if your IP realises it is possible they will fail it.

When you have had your past reviews have you had to supply bank statements? I am not sure if they will do a credit check when they do this review but if they see your bank statments will see the payments going out.

In an IVA your payments usually take into aco!!!! your spare money and the payments can go up if you have any, how do you afford to pay for van finance etc? I know from being in IVA that the available money is tight.

thecableguy12

they cant and wont do a credit check, the only way they will find out as already mentioned if there are any transactions on the statement that show the credit cards being paid although the ip may not even care as long as they get there supervisor fees and nom fees:money:

MIVAA

thecableguy12 wrote: »

they cant and wont do a credit check, the only way they will find out as already mentioned if there are any transactions on the statement that show the credit cards being paid although the ip may not even care as long as they get there supervisor fees and nom fees.

For what it's worth, I'm sure the IP will care, and I'm surprised at your comment Cable Guy, especially seen as you say you used to work in an insolvency practice. It doesn't say much for the IP you were working under if that is the impression they sent out!!

My experience is that an IP will care, and care very much, especially when there has been a wilful breach of the IVA.

What surprises me more than anything though, is how you managed to successfully apply for 2 credit cards whilst you are in an ongoing IVA. I have only ever heard of people choosing to not declare credit cards from the outset, with the intention of using them if things get tough.

This is serious enough, but to wilfully apply for credit show a total disregard of the consequences that might follow.

You should brace yourselves. It will be down to your supervisor to decide what happens next.

MIVAA

MIVAA

onesugarplease wrote: »

hi guys,
myself and my wife are just entering our last year of our IVA. when we did our last review in 2008 we were told it would be our last one. we've just found out that we are having another one now. trouble is, once we thought we had our last one we relaxed a little. i have a credit card, van finance and a catalogue. my wife has a credit card too.
our IVA is at about £800.00 a month and we were told that this would be the figure to the end. now what? once they find out we have credit what will happen to us?
have any of you had a similar experience? will they force us to go bankrupt~which is what we should have done in the first place.
they can't have what we haven't got after all!
we can afford the payments till the end if they stay as we arranged.
IVA should be avoided in my opinion.
please post your thoughts, especially if you've had similar happen to you.

I'm puzzled by your comment "They can't have what what we haven't got after all!"

It would seem that you can afford £800 per month - plus whatever you are repaying to your credit card and the catalogue, plus the payment you are making to the new HP agreement, plus whatever your wife is repaying to her credit card too.

If the IVA is failed, the previous 4 years of payments from your IVA would be deducted from the original debt you had before the IVA began, minus the costs taken by the IP, and you would be left with the remaining debt.

If you are then made bankrupt you would definitely be subject to an Income Payment Agreement for around the total of all the above amounts, and your IPA would last for 3 years.

So it would appear that if this is what happens, they are going to be able to get quite a lot after all.. certainly more than if you'd kept to the terms of your IVA.

onesugarplease wrote: »

IVA should be avoided in my opinion.

I totally agree - IVA's should be avoided by people who have a total disregard for any legally binding agreements they enter into.

MIVAA