Advise Please

[gertrude]

My friend and her husband took out an IVA last year, but the marriage is in serious trouble and my friend wants to leave. She has got an credit card and a bank account which she didn't declare when the IVA was set up. She is talking about using the credit card to finance her leaving her husband and renting a property with her daughter. She doesnt think that the IVA company will find out but I think she is asking for trouble and would like some advice as to what could happen to her if she goes ahead and uses the credit card, so I can try and help her.

[MelanieGiles]

Hi gertrude and welcome to the forum

If your friend uses unauthorised credit during the IVA she will be in breach of the agreement and her IP may well find out about this and the fact that she failed to disclose creditors in the original IVA proposal. This may well cause the IVA to fail, but if she and her husband are separating in any case, this may also cause failure as they will be paying for two sets of accomodation which is bound to impact upon their finances.



Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[gertrude]

Thanks for the advise.

I think if they did split up the IVA would fail, especially as her husband keeps threatening her with bankruptcy. Would she be commiting fraud if she did use the credit card?

[MelanieGiles]

She would need to explain her actions to the Official Receiver, who would want to know why these credit lines were not included in her IVA. Failure to declare creditors in an IVA could result in a Bankruptcy Restrictions Undertaking or Order.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp