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  • FIRST POST
    • hadenoughnow
    • By hadenoughnow 4th Jul 18, 8:51 AM
    • 125Posts
    • 48Thanks
    hadenoughnow
    IVA and a Loan
    • #1
    • 4th Jul 18, 8:51 AM
    IVA and a Loan 4th Jul 18 at 8:51 AM
    morning All

    I am 3 years into an IVA, I moved house just after and told the company i had done so. For some reason they havent updated my credit file. l got one of those offers through Clearscore that said i could get a loan and credit cards etc. i therefore applied and got both, the loan was for 7500 and the card was for 4000.

    I have spent the loan on online gambling, its an addiction i have but can control very well when i dont have the funds to gamble, but the offer of a loan and available monies made it rear its ugly head. I also got carried away and spent more - chasing the debt via paypal without realising what i had spent so now the Direct Debits for Paypal are due i dont have to enough to cover it, totalling 1500. so they will come chasing soon. I have just submitted my annual review for my IVA and my budget now gives me an available surplus of around 60 wheras it has been 137 previiously. Also because I have had a loyt of overtime last year they are saying that i should be paying 625 into my iva, however i have argued that the increased budget has been like this since just after my last review but i still managed to pay the 137.

    Heres my questions:

    1/ What happens if i refuse to pay that 625?

    2/ If i am forced to go BR what will happen with regards to the fact
    i took out these loans whilst in an IVA? and also aloowing
    myself to end up owing money to Paypal. ( i am seeking advice
    regarding the gambling)

    3/ is my Iva likely to fail with such a dramatic decrease in surplus?

    I know this is long winded and complex. but i would value any knowledgable answers, please only reply if you know for sure and dont guess at what could happen. Many thanks people
    HEN

    National Debtline - Tel: 0808 808 4000
    (CCCS) - Tel: 0800 138 1111
Page 1
    • foxy-stoat
    • By foxy-stoat 4th Jul 18, 9:07 AM
    • 3,017 Posts
    • 1,693 Thanks
    foxy-stoat
    • #2
    • 4th Jul 18, 9:07 AM
    • #2
    • 4th Jul 18, 9:07 AM
    1. If you dont pay the 625 then your IP will not be able to close your IVA - they may ask you to pay for a couple more months at the end.

    2. If you go bankrupt which is very likely, all your debt will be dealt with in the bankruptcy. No one is going to prison for taking out further borrowing whilst on an IVA, you have just breached the terms of the contract and your IP will probably fail it.

    3. Your IVA will not fail due to the decrease in surplus, it will fail as you have taken out credit whilst in your IVA.

    Did you answer the questions on the loan and credit card application forms honestly, the questions about been insolvent?

    I would stop paying your IVA now, as you will unlikely be able to complete it so theres little point in paying anyone at this point.

    Get help with your gambling.

    Good luck
    • mwarby
    • By mwarby 4th Jul 18, 9:18 AM
    • 841 Posts
    • 315 Thanks
    mwarby
    • #3
    • 4th Jul 18, 9:18 AM
    • #3
    • 4th Jul 18, 9:18 AM
    I would say the OP needs to talk to their IVA company. Its gonna be easier to tell them than for them to find out later.

    I would be careful about blaming the IVA company, its unlikely to help.

    As foxy says I don't see much chance of the IVA succeeding, if it is doomed to fail, the quicker and with less drama it fails the better . Its worth bearing in mind that the official receiver will likely take a dim view of events, and may impose a BRU(this may help actually, as it will stop easy access to credit for that bit longer)
    • hadenoughnow
    • By hadenoughnow 4th Jul 18, 11:33 AM
    • 125 Posts
    • 48 Thanks
    hadenoughnow
    • #4
    • 4th Jul 18, 11:33 AM
    • #4
    • 4th Jul 18, 11:33 AM
    1. If you dont pay the 625 then your IP will not be able to close your IVA - they may ask you to pay for a couple more months at the end.

    2. If you go bankrupt which is very likely, all your debt will be dealt with in the bankruptcy. No one is going to prison for taking out further borrowing whilst on an IVA, you have just breached the terms of the contract and your IP will probably fail it.

    3. Your IVA will not fail due to the decrease in surplus, it will fail as you have taken out credit whilst in your IVA.

    Did you answer the questions on the loan and credit card application forms honestly, the questions about been insolvent?

    I would stop paying your IVA now, as you will unlikely be able to complete it so theres little point in paying anyone at this point.

    Get help with your gambling.

    Good luck
    Originally posted by foxy-stoat

    I cant remember but i probably did omit to say that i was subject to an IVA, so im guessing thats an offence of deception, but would the loan company know that i was subject to an IVA if they were informed of my bankruptcy. I must add that i am paying off the loan repayment and the Credit card. I am happy to continue in my iva and repay the loan, im not looking for bankruptcy as an option.
    HEN

    National Debtline - Tel: 0808 808 4000
    (CCCS) - Tel: 0800 138 1111
    • foxy-stoat
    • By foxy-stoat 4th Jul 18, 3:05 PM
    • 3,017 Posts
    • 1,693 Thanks
    foxy-stoat
    • #5
    • 4th Jul 18, 3:05 PM
    • #5
    • 4th Jul 18, 3:05 PM
    I cant remember but i probably did omit to say that i was subject to an IVA, so im guessing thats an offence of deception, but would the loan company know that i was subject to an IVA if they were informed of my bankruptcy. I must add that i am paying off the loan repayment and the Credit card. I am happy to continue in my iva and repay the loan, im not looking for bankruptcy as an option.
    Originally posted by hadenoughnow
    You probably committed fraud on the loan application, you have definitely breached the terms of your IVA contract by taking on further credit and do not seem to be up for paying half of your overtime/bonus income - your IVA will fail and go onto bankruptcy - You really need to get bankrupt so you can stop obtaining further credit for a long time and get help with the gambling.

    Not sure if the new lender will bother to action the fraud/deception committed to obtain funds for this amount, but on their website they state:

    "ClearScore's vision is to help everyone, no matter what their circumstances, achieve greater financial wellbeing. "

    I would say they have not achieved their vision on this occasion.
    • mitch2509
    • By mitch2509 4th Jul 18, 3:22 PM
    • 41 Posts
    • 58 Thanks
    mitch2509
    • #6
    • 4th Jul 18, 3:22 PM
    • #6
    • 4th Jul 18, 3:22 PM
    I cant remember but i probably did omit to say that i was subject to an IVA, so im guessing thats an offence of deception, but would the loan company know that i was subject to an IVA if they were informed of my bankruptcy. I must add that i am paying off the loan repayment and the Credit card. I am happy to continue in my iva and repay the loan, im not looking for bankruptcy as an option.
    Originally posted by hadenoughnow

    They think you have a surplus and you don't because of the loan pay,ents, they are goi g to want to kno where your money is.
    Debts at LBM (June 18):-

    Capital 1 - 413.46 Vanqqquis - 1676.43,First D Visa - 1578.73, Next - 2083.12, TSB - 5326.59,Barclaycard - 5195.01, Capital one me - 1359.99, Loan - 5702.31, Loan - 2739.99, Total 26,075.63
    • hadenoughnow
    • By hadenoughnow 4th Jul 18, 3:27 PM
    • 125 Posts
    • 48 Thanks
    hadenoughnow
    • #7
    • 4th Jul 18, 3:27 PM
    • #7
    • 4th Jul 18, 3:27 PM
    You probably committed fraud on the loan application, you have definitely breached the terms of your IVA contract by taking on further credit and do not seem to be up for paying half of your overtime/bonus income - your IVA will fail and go onto bankruptcy - You really need to get bankrupt so you can stop obtaining further credit for a long time and get help with the gambling.

    Not sure if the new lender will bother to action the fraud/deception committed to obtain funds for this amount, but on their website they state:

    "ClearScore's vision is to help everyone, no matter what their circumstances, achieve greater financial wellbeing. "

    I would say they have not achieved their vision on this occasion.
    Originally posted by foxy-stoat

    I would say that Clearscore have just directed me to a lender based on my score, it will down to the lender whether they lend funds based on a ful application, if i had stated that i had an IVA im sure they would have said no. I take full responsibilty and admit i need some sort of help. I will await and see what the IVA company say about the possible reduced monthly surplus and if i can come to some sort of arrangement with regards the overtime then i will. That way i may just be able to finish the IVA and repay the new loan, that seems the most responsible thing to do to me. BR will just wipe everything and all my lenders suffer then.

    But thanks for everyones input i do appreciate hearing it from outside looking in.
    HEN

    National Debtline - Tel: 0808 808 4000
    (CCCS) - Tel: 0800 138 1111
    • hadenoughnow
    • By hadenoughnow 4th Jul 18, 3:36 PM
    • 125 Posts
    • 48 Thanks
    hadenoughnow
    • #8
    • 4th Jul 18, 3:36 PM
    • #8
    • 4th Jul 18, 3:36 PM
    They think you have a surplus and you don't because of the loan pay,ents, they are goi g to want to kno where your money is.
    Originally posted by mitch2509
    The loan repayment hasn't been included on my I/E form, i have only listed the same things that were on my budget previously, however things have increased in price, i.e Fuel and household bills,yet my wages havent increased. The loan is paid from a seperate bank account so wont show if they ask for statements.
    HEN

    National Debtline - Tel: 0808 808 4000
    (CCCS) - Tel: 0800 138 1111
    • foxy-stoat
    • By foxy-stoat 4th Jul 18, 5:26 PM
    • 3,017 Posts
    • 1,693 Thanks
    foxy-stoat
    • #9
    • 4th Jul 18, 5:26 PM
    • #9
    • 4th Jul 18, 5:26 PM
    No way you will be able to afford the repayments on 15K of debt on the balance of money left over after the expenditure form has been completed. Your normally left with less than 100 after all living expenses.

    Your talking about being responsible, not telling your IP about your new borrowing isnt responsible. If the IP run a credit check at the end of the IVA (they did with me) then they will see your new debt and if you have been paying it, they could quiet easily fail the IVA then.

    Wish you all the luck in the world but you should think about stop paying for everything, and saving the monthly payments in a box underground and wait for the letters to come in and go BR and get this sorted.
    • z1a
    • By z1a 4th Jul 18, 9:13 PM
    • 1,560 Posts
    • 1,537 Thanks
    z1a
    "but can control very well when i dont have the funds to gamble"

    That's not being able to control it, it's not having the option.
    • Craig1981
    • By Craig1981 12th Jul 18, 7:52 AM
    • 430 Posts
    • 199 Thanks
    Craig1981
    I have had Credit cards when on an IVA - bad credit ones like Aqua and Vanquis - this was done to help build up credit file once IVA finished. It was joint, and both my wife and I had 2 cards each - credit limits totalling around 10k - IP didn't question it as balances were zero. Was also on Noddle, Clearscore, and only loans etc available were high APR ones, if I remember correctly. Your IVA would also have shown up on a credit check by any responsible lender. But even so, should have honoured IVA - we did it and have really benefited from doing it


    as for the gambling - I understand where you coming from - need to get help - plenty of sites etc to do so. - try get someone to install K9 Web Protection (Free install) on all your devices with a password you cannot hack - block gambling sites. However what I would strongly recommend is signing up for self exclusion at Gamstop - by end of this year, all online sites must be registered with them.


    Good luck
    • liamfromleeds
    • By liamfromleeds 12th Jul 18, 11:06 PM
    • 12 Posts
    • 40 Thanks
    liamfromleeds
    Like Craig said, exclude yourself from the sites, Gamstop wasn't around when I did it years ago, but I manually called every site I could find and asked them to put me on the max exclusion for 5 years, even had to sign up for some sites to do this.

    I had got away from gambling at the time and hadn't touched it in over 5 years, but lost 1k after an old account I used sent me a text message to my phone and offered me free credit, then as I'm sure you know it spirals. I was smart enough to realise quickly what an idiot I'd been and made sure I couldn't gamble and they couldn't contact me again.

    And always always remember clearly the mess you are in now, don't remember the big wins, remember on how much gambling fuc'ed up your life.

    The house always wins, that's why these sites exist, I didn't need help to stop, I needed to get smart and realise that you don't get anything for nothing if this world, if you wan't anything out of life the only answer is hard work, full stop.
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