Iva cheeky, unlawful or sensible?

scared-sick

Still weighing up my options but looking like an iva is the right road to go down. I have a little problem though, well 2 actually.

During my dmp, due to unforeseen circumstances last year, i have spent on my very card. When going through my iva information i didnt tell them about this incase i decided to stay on the dmp and was worried that if i told them i would get kicked off the dmp for using more credit.
So one, how do i come clean if i choose the iva?
Will they now say no to iva?
Second, if i do choose Iva i want to get prepared.
This means that i would get a washing machine on the very account as mine is on its last legs so need to get that sorted before i commit to the iva with no safety net.

The other thing is, speaking of no safety net, i have a credit card with a £500 limit and £0 on the card. Do i withdraw the £500 to use as a safety net then include this in the iva also? Or am i allowed to keep this card as part of an iva for emergencies?

longtermplanner

Unlawful.

Buying a washing machine OR a cash withdrawal when you do not intend repaying the money in full is fraud.

scared-sick

Ok thank you.

UpToMyNeckInIt

I agree in principle with LTP's advice - all of which is correct.

However, I recall maxing everything out prior to entering my IVA to build up a small contingency fund (we are talking a total of around £600 - a small proportion of my c£36K debt).

I was even encouraged by my IVA provider to put their 'up-front fee' on one of the credit cards going into the IVA - that way it won't cost me anything (good old sales patter for you).

When I questioned the issue of 'fraud' my company advised that, providing the account is more than 6-Months old, and in established use, you will be OK.

Not sure I entirely agree, but all my accounts were in regular use, and frequently near/at their limit.

However, if you open a 'new' credit line, use it and then enter an IVA straight away, I suppose you could get nabbed.

Personally, I would seriously consider getting the new washing machine (if you have had the 'Very' account a while), because you will have a hard job getting one once in the IVA.

I would also keep the 'clean' £500 card. Most IVA's allow for you to obtain £500 additional credit, and it provides a safety net.

Either way, you must include ALL your creditors in your IVA proposal.

Anondebtadvisor

It is very common for people to use additional borrowings, for essential items in the build up to an IVA.

I do not necessarily agree that this will be seen as "fraud", if this was the case most people in an IVA would also have a conviction for fraud, which I can guarantee you they do not!

I agree with UTMNII, if you need a washing machine consider getting one - if you were buying a new car for £10k as you would expect the creditor would be too impressed and may reject the IVA.

scared-sick

Anondebtadvisor wrote: »

It is very common for people to use additional borrowings, for essential items in the build up to an IVA.

I do not necessarily agree that this will be seen as "fraud", if this was the case most people in an IVA would also have a conviction for fraud, which I can guarantee you they do not!

I agree with UTMNII, if you need a washing machine consider getting one - if you were buying a new car for £10k as you would expect the creditor would be too impressed and may reject the IVA.

Thank you for your responses!

Both the very and the card are not new. I havent just opened them in order to wipe them out or anything.
If i was allowed to keep the card legitimately as part of the iva then thats fine its got zero on it but gives me piece of mind.
The washing machine is as you said being bought as a necessity as i know i would not be able to afford one once in the iva.

I appreciate the different views of people on here and like the fact that most are based on personal experience rather than just 'what is the right thing to do'

Still not made my mind up about iva yet.
One day im convinced it is the right and only thing to do and the next day i think i should plod on with my dmp and hope my situation improves.
Wish someone would just tell me what i should do!!

vics1928

Same!! And my partner gets sick of me talking about it

CKhalvashi

Anondebtadvisor wrote: »

It is very common for people to use additional borrowings, for essential items in the build up to an IVA.

I do not necessarily agree that this will be seen as "fraud", if this was the case most people in an IVA would also have a conviction for fraud, which I can guarantee you they do not!

I agree with UTMNII, if you need a washing machine consider getting one - if you were buying a new car for £10k as you would expect the creditor would be too impressed and may reject the IVA.

Remember also, that refinancing debt to a new supplier in the leading months is not seen as fraud, but as a bad commercial decision on the lenders part, as long as the debt doesn't massively rise with unnecessary expenditure.

CK

scared-sick

vics1928 wrote: »

Same!! And my partner gets sick of me talking about it

I wish i did have someone to talk to about it.
I go round in circles in my head!! Lol

scared-sick

CKhalvashi wrote: »

Remember also, that refinancing debt to a new supplier in the leading months is not seen as fraud, but as a bad commercial decision on the lenders part, as long as the debt doesn't massively rise with unnecessary expenditure.

CK

It wouldnt rise massively just the amount of a washing machine that really is necessary not a luxury.
If i dont choose the iva though i wont buy the machine until mine eventually gives out.
If i did choose iva i feel i need to get as prepared as i can

tinkledom

scared-sick wrote: »

Still weighing up my options but looking like an iva is the right road to go down. I have a little problem though, well 2 actually.

During my dmp, due to unforeseen circumstances last year, i have spent on my very card. When going through my iva information i didnt tell them about this incase i decided to stay on the dmp and was worried that if i told them i would get kicked off the dmp for using more credit.
So one, how do i come clean if i choose the iva?
Will they now say no to iva?
Second, if i do choose Iva i want to get prepared.
This means that i would get a washing machine on the very account as mine is on its last legs so need to get that sorted before i commit to the iva with no safety net.

The other thing is, speaking of no safety net, i have a credit card with a £500 limit and £0 on the card. Do i withdraw the £500 to use as a safety net then include this in the iva also? Or am i allowed to keep this card as part of an iva for emergencies?

I can't believe what I have just read!!


Do you fancy spending 6 months inside or something - you are going down that road.