IVA fraud - undisclosed income, what to do?

This_Bloke

A couple I know have, after many years of reckless spending, entered an IVA. I have looked them up on the register and know who the IVA administrators are.
My understanding of thi,s is that it is a way of getting part of their debt written off. They agree to pay a set amount, for a set period of time and this is distributed amongst their creditors (after fees of course). The amount they pay is determined by looking at their income and their necessary expenditure. At the end of the period the balance of the debt is written off (at the expense of the creditors of course).
Have I understood this OK so far?

The problem is that I know that one of them owns a property, which is let out and the rent received exceeds the mortgage by several hundred pounds a month. The tenant has been instructed to pay the rent to a relative's account, and the relative pays it over to the owner each month. I am sure this hasn't been taken into account by the IVA adninistrator.

Surely this isn't right, and the creditors will see back even less of their money than they would otherwise. Indirectly of course, this will be paid for by the rest of us who don't get into debt.

So the obvious question - what should I do? If I tell the administrators, will they respect my confidence, and from an ethical point of view should I do anything at all?

mysterio_2

one of the things here is..have you stone solid proof? its the 1st thing the administrators etc will ask for

I had a similar issue with a guy who'd gone bankrupt next door to my mum..long story short he still spent like nothing and mum wondered why, turned out he'd been buying and selling bangers from his house also sold a caravan he "forgot" to tell the receiver about...I provided all this information to the office dealing with his bankrupcy in confidence they sorted everything and never approached or mentioned me ever again.

alastairq

Indirectly of course, this will be paid for by the rest of us who don't get into debt.

Isn't this a misconception?

Firstly, if we have anything to do with a creditor, we are in debt. Everybody.

The only differences being, circumstances allow one person to manage that debt, and another to not.

Do not imagine for one moment, if a creditor has everybody who is in debt to them, manage their debts satisfactorily, that it will cost each debtor any less to service that debt.

This_Bloke

Stone solid proof - as in do I know exactly what they have told the IVA administrator? - then no.
But I do know they own the house, it's rented out, and the rent is being diverted.It's held in a different surname (her name prior to divorce/re-marriage).
A simple land registry check would confirm of course.

The real question - should I tell?

(Misconception - what, like dodgy insurance claims put up premiums for the rest of us? I don't think so!)

alastairq

(Misconception - what, like dodgy insurance claims put up premiums for the rest of us? I don't think so!)

Nothing like it at all. Entirely different ball-game.

alastairq

Stone solid proof - as in do I know exactly what they have told the IVA administrator? - then no.
But I do know they own the house, it's rented out, and the rent is being diverted.It's held in a different surname (her name prior to divorce/re-marriage).
A simple land registry check would confirm of course.

The real question - should I tell?

So....if you went to the administrator, all you would be passing on are suspicions?

Why not simply drop the administrator a line, telling them of what you know? {or...suspect?]

Then leave the moral decision-making up to them?

If they investigate, find evidence, and pursue, then you will have the satisfaction of knowing [if they tell you, that is?]....that some sort of justice has prevailed.


Of course, if your suspicions are investigated, and it turns out you are barking up the wrong tree......then again, a sort-of justice has prevailed.

rossireps

leave them to their own business?

dojoman

Either man up or forget about it, don`t ask other people what to do, that is up to you and your conscience.

alastairq

I didn't want to be so blunt, dojo......

[Deleted User]

busy bodies eh? who`d have one for a neighbour??

piglet74

Agree with above

What a busy body you are!!

Keep your nose out, stop digging and there is less of a chance you would know so much,