Loans Whilst in IVA

hadenoughnow

Morning All

I am 3 years into a 6yr IVA. I have recently taken out £15k of loans to pay for private surgery, and some has also been spent on a gambling addiction brought about by my partner leaving. (I thought with her income we could have repaid the loans).


Now Im really struggling. I have £3000 of these loans set aside to repay the IVA should they accept it, after this I was thinking of the BR route to cater for the new loans. I am just wondering if this is the best way to go about it, and what the OR will say that I have taken out all this extra debt whilst in an IVA.

Im aware that im probably looking at BRU and that's fine, im just worrying that there is some kind of criminal accusation coming my way? Any well founded advice is really appreciated guys please.

Thanks in advance.

Years_of_debt

Helll you are not allowed to borrow more than £500 whilst in and IVA without the IP agreement. So borrowing £15k isn’t going to look good.
IVA rules:

https://www.stepchange.org/debt-info/credit-and-loans-on-an-iva.aspx

I am not judging you as I had a gambling addiction to, google ARA they are a free charity that provides fave to face therapy with a trained councillor who speclizes in gambling. That’s the first thing you need to do, you have to stop gambling mate.

In terms of your new 15k if you went BR you would be given a BRU as you borrowed money whilst insolvent. If you have obtained the money through fraud it might not be written off by BR and you may still be liable for it.

“Debts you took out by fraud

If you took out any of your debts by fraud, your creditor can't chase you to pay while you're bankrupt, but they won't be written off at the end of the bankruptcy period. This means you'll still be liable for paying debts you obtained by fraud after you've been discharged from bankruptcy”

^ officially.

It depends how you got your hands on the 15k and wether the IP thinks it was fraudulent.

If you’re struggling to pay the repayments on the 15K then BR might be your only option. They are going to ask you a lot of questions so just have all your paper work ready and be honest with them.

I wish you well in your recovery from gambling.

Years_of_debt

Hello* not Helll

hadenoughnow

The Loans were taking out via Clear score whose application was pre filled based on my credit score. there were no questions about current IVA, although I had told my IVA company I was living there. So I didn't technically lie to obtain the credit, although I agree I knew I shouldn't have taken out the credit in the first place.

Lioness_Twinkletoes

hadenoughnow wrote: »

The Loans were taking out via Clear score whose application was pre filled based on my credit score. there were no questions about current IVA, although I had told my IVA company I was living there. So I didn't technically lie to obtain the credit, although I agree I knew I shouldn't have taken out the credit in the first place.

Um....you knew that you can't borrow more than £500 while in an IVA much less £15k? A lie by omission is still a lie.

Years_of_debt

Yeh mate i ain’t no expert,
But it does state in black and white - do not take more than £500 credit unless you IP has agreed you can - they never agree as you’re in an Iva because you can’t pay you’re debts.
Just going to have to ring them and be honest, lieing or making excuses for this and that ain’t going to wash.
You gotta be honest mate and just tell them what you’ve done and They will help you.
As I said I’ve been there and gone BR over gambling and lieing and all this.

Once you come clean to yourself as your IP you will feel the weight lifted off of your shoulders.

Seek help with gambling before it takes every penny from you.

Second option down - gambling treatment.

http://recovery4all.co.uk

sourcrates

Another question might be how on earth did you obtain 15 thousand pounds in loans whilst an IVA still shows as active on your credit file, plus the associated defaults from the debts included in it ?

hadenoughnow

I’m not asking to be judged, I know I’m not supposed to take out debts, but like I said most of it went on surgery, not all on gambling. I was asking for advice from someone who actually knows what the procedure is. The offer from ClearScore was there and I took it. Until my partner left all would have been ok and they would have got paid without anyone knowing.

sourcrates

hadenoughnow wrote: »

I’m not asking to be judged, I know I’m not supposed to take out debts, but like I said most of it went on surgery, not all on gambling. I was asking for advice from someone who actually knows what the procedure is. The offer from ClearScore was there and I took it. Until my partner left all would have been ok and they would have got paid without anyone knowing.

You must tell your IP.


What happens from then on, is up to them.


Best policy, as others have said, is just be honest and remorseful in equal measure.

sourcrates

hadenoughnow wrote: »

Until my partner left all would have been ok and they would have got paid without anyone knowing.

Actually this is not the case, your credit file would be checked at the end of the arrangement to make sure you have complied with your IP and not broken the terms of your arrangement, so you would be found out, sooner or later.

Years_of_debt

The procedure is yoy shouldn’t of took it out and you know that deep down. But who cares we all make mistakes mate!
You just gotta be honest and ring your IP and say “spent 15k can’t afford the repayments I’m know going bankrupt”

When you have your meeting with the OR they will just give you a 4-6 year BRU most likely
You will be discharged after 12 months with 0 debt and able to work full time and keep your salary again! They may IPA you if you have surplus income - read into it and see how to live/keep your salary below the thresh hold for 12 months.

A BRU is in effect pointless anyway, no credit over £500 - when bankrupt people aren’t going to lend you money for 6 years anyway & you can’t be a company director - who cares?

You will feel better once you have been honest with them and yourself.