Am I being robbed?

4791

Hi
A friend of mine has applied for an iva.  She said she has declared all cards except one. She has now asked me to loan her 500 pounds to help her pay the 200 pound minimum payment  and she can use the rest to live on till her pay day. This means that she can also she can keep the credit card running and open. I asked why she hasn't declared this card she said she didn't know but thought she can keep it and just run it.
She is bad with money and gambles a lot. Do I trust she still has the card and she is going to pay the minimum payment or that she is going to keep the 500  or by lending her the money am I placing her in a worse positiion.
Sorry I don't know much about iva 

Robin9

Forget the iva and the credit aspects - are you prepared to loose the £500 , and next month, and the next month.?

PS the iva will find out about the credit card.

4791

Thank you.. No not really but I also don't want my friend to be in a bad situation either   

MovingForwards

Buy her a selection of food if you want, but never lend money to friends especially one in an IVA, who hasn't got their debts / spending under control and who is a gambler. You'll never see the money again.

4791

Thankyou for your response. I feel bad because of my distrust with her. I assumed with an iva you can't keep a credit card. Thank you 

HummingBird76

MovingForwards said:

Buy her a selection of food if you want, but never lend money to friends especially one in an IVA, who hasn't got their debts / spending under control and who is a gambler. You'll never see the money again.

100% this.  DO NOT give her money.  She needs to get herself out of this situation and if friends start lending her money, they are effectively just adding to the problem.

sourcrates

She is heading for disaster with this one, you are expected to declare ALL your debts when entering insolvency, deliberatly leaving one out of the arrangement is a big no no, the only exception to this is if a line of credit is needed for buisness purposes with regard to your job, in those circumstances the debt must still be divulged, and an amount is usually added to your budget to make payments with, but it can only be done with the agreement of your insolvency practitioner.

She should be living within her budget, if she can`t do that, something is wrong, lending money to an insolvent, with a gambling problem is just insane, in an IVA your budget is strictly controlled, where will the money come from to pay you back ??? and please don`t suggest she will win it back, you`ll be doing her no favours i can assure you.

KittyHawk

Anyone with financial problems and a history of gambling, who thinks they need to keep 'one line of credit open just in case' hasn't had their lightbulb problem. It's odd that your point on the graph for 'trust' is that she *does* have the credit card she claims to have retained, and needs to pay the minimum payment (plus money to live off). Mine would be trusting that she *doesn't* have any more cards. Being as how she's entering an IVA and all that 🙄

DCFC79

I have to agree with the posted advice OP, buy your friend a few days worth of food from a supermarket.

Giving money wont solve the issue and Im sure you have to declare any credit cards as part of an iva.

liggerz87

As others have said dont give her a penny and say she didn't have the cred card by trying to hide and you did borrow her money as she entered iva your borrow would end up on it even of they didn't allow you to have a vote as other have said buy jer food but not lend money

4791

Thankyou all for your advice. I have took her shopping for food and suggested if she has a credit card then she needs to declare this too.