iva and undeclared money

wendykearney

How seriously do the insolvency people take it when someone has undeclared income from breeding pedigree cats ? Taking about 18 litters a year , no mention of cats made in any of the paperwork submitted. Also person running up bills for solicitors and barristers whilst on iva.

It has been reported by many people but this person gets away with so much we are wondering how serious an offence it is to what I suppose is fraud.. they still go on foreign holidays and spend several hundred per month going to cat shows staying in hotels etc and buying in cats from abroad. No change in lifestyle despite owing many many thosands of pounds. :mad:

Will it just be a slapped wrist or is it taken seriously?

nelly12

Search the Insolvency Register for details of their IVA and then contact their Insolvency Practioner with the details that you know, this is Fraud!

wendykearney

It has been reported by several people... we couldn't find anything though that gave us any idea of how serious an offense it is.

DorisTrousers

It is a serious breach, but of course proof is an issue. Do you have any?

The I.P. performs the role of "honest broker" in an IVA and does have powers in case of serious breach as he has a responsibility to debtor and creditor alike, however he (or she) is unlikely to consider hearsay without hard evidence as being enough justification to invoke those.

HappyMJ

I would think the HMRC would be more concerned as they are losing the money from the tax on the profit made from these cats. 18 litters a year is certainly not a hobby. The HMRC don't tax hobbies but that to me would just be a few i.e one or two litters per year. This is a business.

wendykearney

Yes there is hard proof and it has been forwarded on. ... she apparently thought she could keep it all quiet about the iva and so be able to continue as before.

DorisTrousers

The issue with HMRC is also relevant then, as HappyMJ points out. This would, most likely, create a further debt which is post IVA and is a breach in itself.

mwarby

wendykearney wrote: »

Also person running up bills for solicitors and barristers whilst on iva.

Nothing stopping you from engaging solictors/barristors running up bills during an IVA. Your not allowed to take out credit without permission, at what point an unpaid bill becomes credit i don't know. The solicitor\barristor may have difficulty in collecting though, as there will be very no disposable income other than what can be saved on day to day expenditure. Any debt ran up this way wouldn't be part of the IVA

DorisTrousers

As they don't come cheap, I suspect the I.P. would want to question how it can be afforded alongside the IVA payment, which clearly hints at there being more money available for creditors than is being declared.

I know of a number of I.P's whose first instinct would be to bankrupt them and seek appointment as Trustee in Bankruptcy. An IVA doesn't leave you with massive amounts of wriggle room, and I accept people will do what they can to make day to day life a little easier, but this does seem to go way beyond that. I would be tempted to inform HMRC of the undeclared income and let them get their teeth into it as well.