last september i went into an iva and in january seperated from my now ex wife and left the family home in which i still have about 9k of equity, moved into rented accommodation and could not continue to pay iva which was frozen for 6 months, i had to find a lot of money to pay deposits and furniture etc and used a credit card which i know i should not have done but had no choice, my iva is now about to be cancelled as my creditors wont accept a f/f settlement so low, and i am going to seek bankruptcy but i dont even have the money to pay the fees, has anybody been in a similar situation and what are the concequences of having used the credit card?
you really need to have a long conversation with an expert regarding the situation.
It is not in itself a problem for the OR that the IVA has failed because of a change of personal circumstance.
Hiowever one of the serious conditions of the iVA is not to take out credit so I am confused about where the credit card came from and did you disclose it prior to the IVA?
there is also a problem with the equity in the marital home as this is certainly going to be lost in Br.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
I do remember hearling about a lady who only declared part of her creditors for the IVA and continued to make payments to the others outside of the IVA.
When she went Br the OR pursued criminal proceedings and she received comunity service.
this isn't to frighted you but to let you know to tread carefully
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
I must say I'm surprised to read that scenario Paul. Unlike in BR, obtaining credit within IVA, as I understand it, is not a criminal offence, as it is in bankruptcy.
Granted the terms of an IVA may restrict further borrowing and the consequences once known are that the creditors can then fail the IVA as a result. Unless I'm wrong then I wonder what the lady in question was found guilty of in criminal terms.
PS. Paul - having now re read your post I realise that's a different scenario altogether. My apologies.
concequences of using credit prior to br ?
Posted - 05 September 2008 : 16:54:34
