Iva breach and help

Vindaloostu_2

Hi,I've only recently started my Iva. They've contacted me to say I'm in breach because I hadn't told them about a loan.the problem is they asked me for all my personal debt which I've done.this loan they are on about was for my wife's business and although I took out the loan in my name all the Money from it went into the business account and the business also pays for it on a direct debit.it basically has had no bearing on our personal finances.

antrobus

You are in breach of your IVA. You failed to disclose one of your creditors. The fact that you spent that borrowed money on your wife's business, rather than (say) a holiday in Lanzarote, is neither here nor there.

Your going to have to admit to your IP that they are right. Explain why you thought differently. And await their response.

UpToMyNeckInIt

Hi Vindaloostu,

Welcome to the forum.

Difficult to advise without more information, but I think I see your point here: 'you' and your Wife's 'business' are 2 separate legal entities (particularly the business is a limited company).

The problem arises because on paper, the loan was taken out in your name, not in the name of the business. Furthermore, as it is nigh-on impossible to get any form of credit once you are on the insolvency register, you presumably took out this loan, knowing that you were about to enter an IVA. This could be viewed as an attempted fraud, as you are not allowed to borrow money that you have no intention of repaying (I'm sure that's not the case, but in law, 'ignorance' is no defence).

You will need to speak to your IP. Even if you took out this loan with the right intentions, I have no idea if you will be able to salvage your IVA. I have heard of some firms adding additional borrowings to the IVA, espeacially if they are relatively small amounts.

Hope you find a successful resolution, and let us know how you get on.