IVA + Credit Card use

cherry545

Hi there - I was accepted for an IVA in Feb of this year - initially the relief was great, however between one thing and another with car trouble I soon ran into difficulties - I did not manage to save for a contingency fund before this, cos circumstances just didnt allow.

I had rang Grant thornton to ask for a payment holiday in June - customer services took my number twice and said someone would ring back and they didnt.

So I ended up missing a payment - also a bank that is not included in my IVA sent me out a replacement credit card because my current one had expired. Unfortunately I have had to use this because I had absolutely no money to live on after paying for car repairs which I need for work (I had also been getting Payday loans to tide me over).

I am worried sick now and dont know whether I should let grant thornton know that I have been using this credit card - but I suppose they will find out anyway.

Will this mean I have breached the terms of my IVA - will I be made bankrupt now? any advice would be greatly appreciated.

thanks

FoggyBrain_2

You really need to speak to your IP -- unfortunately it appears that GT are difficult to get hold of at the moment due to workload --- not a good excuse, but there it is.

How much credit have you used? Three missed payments is an automatic breach -- many other situations can be worked around.

If the IVA fails you can chose to go BR -- it is unlikely that your creditors will make you BR ... unless you have a large chunk of equity in your property (or owe a large chunk to HMRC).

cherry545

Ive paid off the Payday loan - I now owe the credit card £1300. I never thought I would ever use a credit card again... Yes I will ring grant Thornton and insist they put me though to someone - I plan to take on a second job to pay this card off.

Thanks for replying to me.

cherry545

[FONT=Verdana, Arial, Helvetica]Well I decided to take the bull by the horns and rang GT and told them of my situation. I explained that I requested a payment holiday but no one phoned me back - she was quite stern she said I could be back at square one with all the letters/phone calls etc. I said the plan does not allow me to save she said the point of the plan was not to save but to pay back what I owe! Im aware that I need to pay back what I can however with five years to go I can see this plan failing if I cant manage to save up a contigency fund.

I have to wait 2 weeks to find out if it has failed or if they will agree to a payment holiday to allow me to pay off the credit card.

I also explained I was left with no choice as I need my car to get me to work and needed to get this repair work done - however she did not take this on board.

Im seriously not happy with GT! Im not sure if I done the right thing by being honest about the credit card usage.[/FONT]