bankruptcy

dimp81

hi wondered if anyone can help while i had an iva ongoing i still had store cards and also got provi loan out now going bankrupt should i declare this in bankruptcy but really unsure whether i should have had these while in an iva

skylight

Yes - Include everything. You must not hide anything at all.

And there is no rule that says that you can't get credit whilst in an IVA. The OR in your Bankruptcy may not be happy about it, but you will not be the first person to have taken out a provi loan and regretted it.

Don't worry about it. I am assuming that the IVA stretched you too far. The OR will understand this - as I said, he/she may not be too happy, but they are human and will have come across this before.

shameless-about-money

It all needs to be declared, IVA or not. You have moved on from your IVA now so don't let it worry you.

Hope all goes well.

shameless-about-money

charlotte664 wrote:

Yes - Include everything. You must not hide anything at all.

And there is no rule that says that you can't get credit whilst in an IVA. The OR in your Bankruptcy may not be happy about it, but you will not be the first person to have taken out a provi loan and regretted it.

Don't worry about it. I am assuming that the IVA stretched you too far. The OR will understand this - as I said, he/she may not be too happy, but they are human and will have come across this before.

You MUST not take out ANY credit whilst in an IVA - it is written into the agreement that you sign!

skylight

I take that back then!!!!! I had obviously mis-read something.

shameless-about-money

Taking on credit whilst in an IVA is considered a default on the IVA and the creditors can fail the IVA and claim bankruptcy immediately if they so wish. It has happened.

In bankruptcy the IVA monies are protected for the creditors and they would have first claim on any repayments.

dimp81

wot do you think i should do really worried about this my store cards i had when toke my iva but at time could afford these so didnt state these creditors on my iva but provi loan i got after iva

shameless-about-money

If you are going bankrupt it really won't matter - just list all of your debts - it will all be sorted with the bankruptcy.

However, if you are in an IVA you will be given an IPA for 36 months. In bankruptcy you must not take on any credit - otherwise you will end up in prison.

luckylady45

I was told that from when I signed the R3 document as part of the paperwork that I was under NO circumstances to take on any extra credit in any form.
I was also told that I should not use any cards I had in my posession.
I said dont worry they have all been cut up and its cash cash cash from now on
LL

less2303

shameless-about-money wrote:

In bankruptcy you must not take on any credit - otherwise you will end up in prison.

Sorry but that is incorrect, it would only possibly result in a BRO/BRU, if it was over £500.

Bankruptcy is not a criminal offence, and does not carry a prison sentence.

Credit up to £500 is permitted.

shameless-about-money

less2303 wrote:

Sorry but that is incorrect, it would only possibly result in a BRO/BRU, if it was over £500.

Bankruptcy is not a criminal offence, and does not carry a prison sentence.

Credit up to £500 is permitted.

Why encourage them to take credit?

The law is quite clear on this.

Also you are quite quite wrong on your assumption that a prison sentence would not be a possibility in bankruptcy -
since whilst bankruptcy itself is not a criminal offence there are many, many offences and misdemeanours within the realms of the laws of bankruptcy, involving fraud and non-disclosure, that still carry a prison sentence both during bankruptcy and during a BRO/BRU.

Any Insolvency Practitioner will be able to expand on this for you.