question regarding my iva

greenbrucelee

My Iva states this

The debtor must not obtain any further credit greater than £500, except for public utilities and
to re-finance any balloon payment as the end of a vehicle hire purchase agreement, without the prior written
approval of the Supervisor. Should credit greater than £500 be obtained without the prior written approval of the
Supervisor, this will constitute a default of the Arrangement

My question is does that mean I could borrow less than that?

Problem is I do not have very much money till the end of the week and I have to pickup and take my Mother to a funeral which is going to cost a lot in petrol because of the distance I have to drive. I know a place that will lend me the money £40 if I was to do that would it invalidate my iva?

techno1029

Although not the best thing to be doing but i would not think it will affect your IVA in any way. During my IVA there were 2 occasions where I had to resort to a payday loan..I knew the interest rates are daylight robbery and all the do gooders will be trying to burn me at the stake but when faced with no food or a PDL then the PDL it was. But i cannot stress enough not to rely on borrowing...it made me ill doing what I had to do and the first thing i did on payday was settle the loan. This was never flagged up in my IVA though.
The other side of me says is it not possible for your mother to get a lift from somebody else attending the funeral?

greenbrucelee

No its not possible for someone to give her a lift. She is 40 miles away and in the middle of nowhere and basically everyone going to the funeral are elderly.

Thanks for the advice, I will only borrow the £40 and will pay it back straight away.

FiatFan_2

Would your mother not be able to contribute to your costs?

One of the SC MoneyAware emails I received recently had a blog thingy on it regarding "what constitutes credit on an iva" which commented "The credit you’re not allowed to take out include credit cards, store cards, loans, payday loans, guarantor loans or any consumer credit act debts. These are against the terms and conditions of your IVA and frankly, they defeat the purpose of your IVA."

It then goes on to say if you need help with things contact your IP.

Old habits die hard and I have to admit I have considered the short term benefit of trying to get a tiny loan to get me by, but I'm worried it'll jeopardise our arrangement. If I done that, I know the OH would linch me and have to agree that if I did succum to a loan then I've not learnt enough from the iva.

Hope you get something sorted

cheesedoffwithdebt

HI- what a very sad dilemma for you, so sorry to hear about this.

Your IP ought to be able to let you pay £40 less on your regular IVA payment and then pay that back at the end of the IVA- its worth asking.

But I can sympathise- the IVA budget is tight and PDL's are tempting but would that affect your spending next month after payday?

UpToMyNeckInIt

greenbrucelee wrote: »

My Iva states this

The debtor must not obtain any further credit greater than £500, except for public utilities and
to re-finance any balloon payment as the end of a vehicle hire purchase agreement, without the prior written
approval of the Supervisor. Should credit greater than £500 be obtained without the prior written approval of the
Supervisor, this will constitute a default of the Arrangement

My question is does that mean I could borrow less than that?

Problem is I do not have very much money till the end of the week and I have to pickup and take my Mother to a funeral which is going to cost a lot in petrol because of the distance I have to drive. I know a place that will lend me the money £40 if I was to do that would it invalidate my iva?

Hi,

In relation to obtaining additional credit (payday loan or otherwise), my protocol-compliant IVA has similar wording to yours:

I interpret the statement as meaning that I can obtain up to £500 in personal credit AND have credit for 'utilities' on top of that. It's only if I 'needed' to borrow more than £500 that I would have to seek consent.

I imagine most protocol compliant arrangements have similar wording, and could be interpreted accordingly.

If I were in your position, I would be inclined to seek approval from your IVA provider for a reduced payment, and maybe offer to repay the £40 over the next few Months. Alternatively, you could ask for it to be added to the end of your IVA.

Both are worth looking into before resorting to a PDL.

Good luck.

FiatFan_2

I would agree that interpretation can be made, but who would be prepared to lend up to £500 to someone in an iva, surely the credit check would cause the lender to decline any request for credit?
(not looking for names here, just trying to give a constructive reply)

If the OP has paid their iva payment this month then they can't ask for a reduction, but would an IP be prepared to give back part payment to help out?