IVA fraud - Is there such a thing?

Bladesman5

Hi, wanted to run this by some expert money savers.

We have a family couple who entered into an IVA 2 years ago. Not through redundancy, I'll health or divorce but through years of over the top spending (we probably all know couples like this). However, the surprising thing is that the spending habits still have not stopped, although in an IVA.

The latest example of this is the couple in question have just ordered their new motobility car. They have gone over the £25000 limit set by the Governmnet by £3000 which has included optional extras such as leather seats and built in satnav.

The point I am making is that I thought when you took out an IVA you were assigned someone (assessor) whose job is to make sure you pay off as much of the debt as possible! How then could they justify £3000 of optional extras amongst all of their other spending!

Maybe I have got this wrong and it is possible to con the system even after entering into an IVA.

Made me think is their such a thing as IVA fraud?

Any thoughts

Regards

Anondebtadvisor

There is flexibilty in an IVA - for example they are allowed to keep over 50% of any overtime/bonuses. If they work overtime or receive bonuses this money can go towards whatever they wish.

If they are "Conning the system" they will be found out at an annual review and the risk is that the IVA will fail or be extended.

At the review the IP will go through bank statement, Wage slips, P60s so it is difficult to hide anything

FraudBuster

The Insolvency Practitioner dealing with the case can be found by doing a search here;

http://www.insolvencydirect.bis.gov.uk/eiir/

debtinfo

If you have serious concerns backed by evidence then you should report them

harveybobbles

I'm guessing you are just jealous perhaps?

you can order motability cars worth over £25,000. The ycome with a hefty deposit.

my MIL has just ordered her new one for October. 4x4, leather, sat nav, reversing camera's etc..

Shes on a payment plan for all of her debts too!

DLA isn't classed as an income, so the IP wont be able to use the DLA money as income. So in theory, for the last few months they (your family member) could have been saving up the Motability component of the DLA to use as a deposit/to pay for extra's.

balmk

harveybobbles wrote: »

I'm guessing you are just jealous perhaps?

you can order motability cars worth over £25,000. The ycome with a hefty deposit.

my MIL has just ordered her new one for October. 4x4, leather, sat nav, reversing camera's etc..

What?£25k For a motability car? A scheme that is supposed to help those less able-bodied get from A to B? £25k????? *head explodes*

harveybobbles

Yes but they DLA claimant forefiets their DLA motability coponent of £200+ a month..

Plus they never own the car unlike HP..

wba31

balmk wrote: »

What?£25k For a motability car? A scheme that is supposed to help those less able-bodied get from A to B? £25k????? *head explodes*

people lose part of the DLA to pay for a motobility car, and anything over that threshold requires additional payment. I am not eligible for DLA but if I were I would want a car that is comfy and has the things i require for comfort and for getting around, it may well be more comfortable seats, or a sat nav etc. and actually, £25k on a brand new car doesnt get you a lot...

I looked into this when working on DRO's as we discovered that a client had spent £9000 on the deposit of his car. it's non-refundable, he wanted a Golf GTi. in that case it was 2 years ago, and they do not get the money back so it was fine...

But i got my hands on a price list for motobility cars, and personally I would be spending a bit more than the standard £25k if i was to get a car through it...

harveybobbles

Going back to the [STRIKE]jealous family member[/STRIKE] Original Poster - last year the family in question could have had their own car to fund, ie fuel, insurance, MOT, servicing. So they would have budgeted for this for the IVA. Insurance of say, £50pcm, fuel at £150pcm, MOT at £4.50 pcm, servicing at £15 pcm, maintenence (tyres, wipers, bulbs, other consumables etc) £20 pcm. Soon mounts up to well over £3000.

But with the Motability car all you pay for is fuel and insurance excess shuld you claim.

So, if you break the £3000 down over 36 months (the usual Motability lease term) then its only actually £83 per month.

Like I say, jealous and nosey.

Anondebtadvisor

It seems some people are still under the impression that being in debt is some kind of criminal offence! The last UK debtors prison closed in 1869.

It is not a crime to be in debt and when in bankruptcy or an IVA you can have a life you dont live on bread and water