Anyone out there silly with money just before getting an iva

foreverautumn

Please post if you was silly with money, just before getting an iva? Was there any consequences to this? I am not talking about a few hundred a bit more than that. Thought things could not get any worse, but think i have thrown fuel on the fire. Cannot tell anyone, not even my partner.

ncollier1

Well it might not be such a great idea to go and buy 5 Rolexes or a new Merc just before getting an IVA. For one thing there is a huge depreciation on anything you buy and you are not guaranteed to get the IVA which will leave you worse off. Secondly even if you have 50% written off, many IVAs fail in which case you will be left with the full debt plus interest plus IVA company fees which can be as much as 30% of the IVA, and that extra spend could tip the scales. Also if you did it to a large extent, it would have to be explained in your IVA court statement.

Charco_2

IPs do not earn 30%... ridiculous!

You will be expected to give a brief account of how you managed to run up such unmanagable debts (spiralling interest, any large purchases, illness or unemployment).

It's unlikely that anyone will look too closely at the accounts to see that you bought a rolex yesterday but they COULD, so try not to be too silly. Essentials is one thing but one last splurge (with no intention of repaying) COULD be construed as fraud.

Dont panic, but try to cut out the silliness now too!