iva rules

feedumall

i hope this is the right place to ask,i have a relative who has a iva she is working but not declaring this,had a inheritance(bought a brand new car)and goes on lots of holidays abroad i dont want her to get into trouble but this is against the rules(gathered from reading on this site)what could happen to her if she is found out have tried talking to her no joy:mad:iva has a year to run

Inverness

IVAs usually contain windfall clauses and may affect future assets. A windfallis money unexpectedly received during the period of an IVA, for example, winning the lottery, an inheritance or large bonus payment. The windfall clause will require the debtor to pay the money into the IVA.

If a debtor withholds or gives false or misleading information about her/his circumstances s/he commits a criminal offence punishable with imprisonment and/or a fine.

The insolvency practitioner who is supervising the individual voluntary arrangement (IVA), or any creditor bound by it, can petition for the debtor to be made bankrupt if the debtor fails to comply with the terms of the IVA.

If the insolvency practitioner or a creditor petitions for the debtor to be made bankrupt, s/he does not need to issue a statutory demand. S/he can petition for bankruptcy immediately on the grounds that the debtor has not kept to the IVA.

See also http://www.insolvency.gov.uk/

althas

Agree with Inverness. I strongly suspect that everything you have said will be against the rules of the IVA (they will have a very comprehensive document explaining it all), and when the time comes for the annual review, I guess these things will be picked up on, and the cash WILL be asked for

A year left to run and this is happening. If the IP fails the IVA, she will get NOTHING back from all she has paid in, the debtors will then be free to chase her for the FULL amount of the remaining debt, and bankruptsy could be the only option left. Another 6 years bad credit file and all that comes with it. Sorry, but I have little time for people who abuse the systems like this designed to help them in the first place, and I make damn sure I make my payments on time (as far as sending 56 pence to my iva account as this is how much extra I had earned that month). I went through personal termoil and guilt about doing an IVA, as i know it was my fault I was in that position

Sorry ranting over, I get infuriated about things like this some times, sorry

Charco_2

Sounds like fraud to me!

I hope she doesn't get caught.

(And breathe Althas.... relax! Sounds almost like you flagellate yourself too and you shouldn't really beat yourself up so much! Debts can spiral for all sorts of reasons - even in hindsight it can be hard to see where it all went wrong! You did the responsible thing in the circumstances and dealt with it head on - so good for you!)

feedumall

althas i do tend to agree with you ,she is planning yet another holiday this time to the caribbean for 3 weeks:eek: i think it is straight talking time ,i see the posts on here and how people take it on the chin and stay on the straight and narrow she will have to be told it is just not fair

Charco_2

Worse than "just not fair", if her IP started to take a closer look at her finances how woud she explain it all? Then she could be done for fraud which would be criminal charges surely. Best case, her IVA would fail and she would be back a square one paying all the debts again (plus the interest she hasn't been paying for last four years), worst case she could do jail (absolute worst case).

She might get away with it all, but if she got caught it would be very serious (now believe me, i aint judging and nor should anyone else... but she should really understand the consequences).

Is the job she is not declaring a SECOND job?

feedumall

sorry it has taken so long to get back to you lovely people but have hurt my arm:mad:to busy swallowing strong painkillers to even think straight:obetter now, yes it is a second job declares a part time one :mad: this is so unfair on people who are trying so hard to do the right thing,have thought of telling her sort this or i will :eek:

Charco_2

It's a shame when people play the system but if I was you I would simply explain the seriousness of her actions and the huge risk she is taking. The rest is up to her.