I have just had my IVA terminated because I 'borrowed' some money from family to purchase a 2nd hand car. I am extremely worried as to what will happen now, please can you advise?
Thank you
You will in effect be back to square one with your Creditors and will start again with the calls/letters etc. The best thing to do is to maybe take advice from another IVA Co.and go from there. You can do reviews etc on www.iva.com
when you say terminated do you mean is going to be or is ?
was your ip aware of your borrowing and are you able to come to any arrangement with them to replace the money in small bits.
can you please post some more details ie who youre with-company wise-how long you were in your iva etc.
please post and we can try to advise
Can you post a few more details as to what you have been told by your IP company?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
as you do need the permission of your ip to gain credit whilst in an iva,surely this means via official credit companies.
it does seem very harsh of your ip to take this stance because of a "loan" from a family member,in fact when problems occur during an iva which over a 5 year iva period happens to many then it is often said by many iva companies can a family member not help.
now unless this family member is a mr barclays or mr lloyd i fail to see how your ip says you have obtained credit,i expect there has been no credit agreement signed?
As long as your family is willing to wait for any repayment until the end of the IVA, I can't see a problem.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It does seem a bit harsh but borrowing without permission is a serious breach irrespective of who you borrow from. However, creditors could be asked to forgive the breach if it was vital to do so and just a misunderstanding. The monies borrowed would have to be differed until after the IVA as creditors would unlikely accept reduced payments to the IVA while you repaid your family.
Speak to your IP to see if the IVA has actually been terminated or whether there is a meeting to be held to decide.
What a nonsense - and hardly in the interest of creditors, yourself or the IP. How much was borrowed, and how has this affected your ability to pay your IVA payments moving forward.
I borrowed £5000 from family for which I am paying £190 per month, I also agreed to increase my monthly IVA by approx £70, I have never missed a payment in two years. I am able to continue to make regular IVA payments but have been told that 100% of the creditors voted for a termination.
£5000 for a second hand car while in an iva could be seen as slightly on the extreme side.
and they will certainly have looked dimly on the fact that you are and can afford to pay a family member 100% of an outstanding loan whilst creditors are only receiving a percentage of what they are owed.
even though you are paying £70 per month into your iva by what you have said you could afford to pay £260 extra.
in my first post i said your ip was being somewhat harsh,given that the sum is £5000 i think id now be a little more on the side of the ip.
Thanks for your comments, I would add that the total IVA monthly payment is £522, I have never missed a payment. I have always had old cars which have let me down in the past and I needed a decent car because my travelling to work has increased due to relocation. Anyway, I expect I will be getting nasty letters & phone calls now, something which distresses me somewhat.
ah gdb88 is there no way at all that your ip can do what michael suggested and 'forgive' the breach-what a shame hun and after all your hard work. do you mind me asking what iva company you was with ? please try an stay calm hopefully mel or michael will be back on soon xx
