IVA non-disclosure panic!

pilliepop

Hi All,

I'm in my second year of an IVA and have just made a full and final offer to them to settle it however they have asked along with the offer letter to see three recent payslips and bank statements.

The only problem with this is that I received a small commission payment from work in August (£500) which I had forgotten to report to them! Now I'm panicking for two reasons - firstly that I've forgotten to do this and can they fail me for nondisclosure? Secondly, will they not accept my full and final offer because of it?

I'm absolutely frozen about the next step and would be grateful for any advice please!

mwarby

I doubt they'd fail the IVA for that. You might find that they want to see statements going back further to check its a one off. I'd expect the £500 (or whatever proportion youd normally have to hand over)may have to be paid in addition to existing full and final

The full and final should be fine, assuming your circumstances haven't changed significantly, as the deal will still work out roughly the same, but now they might get a little bonus too (although by time IVA firm have charged fees and it's been distributed to all your creditors, it wont look very big at all!)

I'd say as long as your honest and dint try to cover this up, you should be fine.

sourcrates

Maybe say you've changed your mind, give it 3 months, then try again.

That's the simplist solution.

You also get to keep the £500 notes.

National_Debtline

Obviously, this should've been declared and even if you don't disclose it now, it would likely come out in the 12monthly review (if your IVA carries on). What I would say, is that it is only £500, it is not a massive lump sum, so it is unlikely that it would've altered payments or the course of the IVA, so hopefully it can be dealt with in balanced way.


Worse can scenario is that they fail the IVA and you may risk bankruptcy, but that does seem like a big response to £500. If this is threatened, make sure you give one of the free debt charities a call.


Laura
@natdebtline

mwarby

sourcrates wrote: »

Maybe say you've changed your mind, give it 3 months, then try again.

That's the simplist solution.

You also get to keep the £500 notes.

There is a risk here, that the creditors will see one failed full and final, and would then not support the next, I can imagine the IP having similar concerns (especially if he\she got no pay for first one).

I would think very carefully about the pros and cons of full and final vs £500 (which will still probably come under the IVA anyway, come what may, as it was received while IVA was active)