Hi there - I was accepted for an IVA in Feb of this year - initially the relief was great, however between one thing and another with car trouble I soon ran into difficulties - I did not manage to save for a contingency fund before this, cos circumstances just didnt allow.
I had rang Grant thornton to ask for a payment holiday in June - customer services took my number twice and said someone would ring back and they didnt.
So I ended up missing a payment - also a bank that is not included in my IVA sent me out a replacement credit card because my current one had expired. Unfortunately I have had to use this because I had absolutely no money to live on after paying for car repairs which I need for work (I had also been getting Payday loans to tide me over).
I am worried sick now and dont know whether I should let grant thornton know that I have been using this credit card - but I suppose they will find out anyway.
Will this mean I have breached the terms of my IVA - will I be made bankrupt now? any advice would be greatly appreciated.
You need to speak to your IP asap about this. You should have cut up the credit card straightaway and shouldn't have been using payday loans either.
You are unlikely to be made bankrupt but you do need to get this sorted. How much do you owe on the credit card? Do you still have a balance on the payday loans?
Hopefully you can get something sorted out with them.
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
Hi and welcome! Cars are such a nuisance!! Call GT tomorrow and don't give up until you speak to someone. Explain that you weren't able to speak to anyone to resolve your problems so had to take matters into your own hands. Your proposal may allow you up to £500 credit but payday loans aren't great and you would need help from GT to repay them. If you aren't allowed credit, it is a bit of a boo boo but under the circumstances they should be working with you to resolve things. GT took over another firm in June and had a rocky month. They usually get very good reviews though so I'm sure they'll be helpful. x
Hi Cherry -- just to add to what I said over the other side ..... as the situation was partly caused by GT not getting back to you to arrange an alternative, you might suggest to them that they allow you a few months payment break to catch up --- use the money that would have gone to the IVA during the break to pay off the credit you have used. It will mean the IVA will get extended a bit to make up the missed payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You shouldnt ever need to take action like using a payday loan firm or credit card and doing so could result in failure of the iva. I understand you did attempt to contact your ip but the credit card should have been destroyed as soon as it landed on the doormat!!
These payday loan firms should get shot for lending to those in an iva,it can only lead to trouble.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
How sad to read this post so soon after your IVA was accepted. Whilst no real harm may have been done, you do need to discuss this with Grant Thornton as soon as possile as there is clearly something wrong with your budget to force you to use unauthorised credit in the way you have done.
I am sure you can get back on track but this does involve your IP giving you support, and you working to an affordable budget moving forward.
Hi
I would contact GT, ask for all outstanding debts to be included and also ask for a fresh income and expenditure form.
Your expenditure allowance may be too tight hence the reason for taking additional credit
Regards
thank you all for taking the time to reply. GT rang me re my missed payment. I did not mention using a credit card (£1300) to pay for repairs because on my agreement it states "If I obtain credit of greater than £500 withour prior written approval my Supervisor will constitute a default of the arrangement". I wonder if there is a GT rep on this site that could confirm with me if they really would default my IVA. Once again thanks to everyone who replied to me.
I agree with PD, you really do need to tell your IP as you don't want this hanging over you. Unfortunately no one from GT posts on here so you'll need to contact them directly.
You have a reason for doing what you did. Surviving little disasters without credit is one of the hardest aspects of iva life! Your ip makes a living off you so the last thing they want to do is fail an iva. Discuss what's happened and take the scissors to the card!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
thanks for all your replies - after a lot of soul searching Ive decided Im going to phone Grant Thornton to come clean about the credit card usage. I wonder if the worst comes to the worst and they fail my IVA - would I be able to go to another Insolvency Company to apply for a new IVA. Any advice would be gratefully received.
Fingers crossed that GT are sympathetic and you can get this sorted without your IVA failing.
If the worst comes to the worst though there is nothing to stop you from trying again with a different firm.
Let's hope it doesn't come to that though.
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
Well I decided to take the bull by the horns and rang GT and told them of my situation. I explained that I requested a payment holiday but no one phoned me back - she was quite stern she said I could be back at square one with all the letters/phone calls etc. I said the plan does not allow me to save she said the point of the plan was not to save but to pay back what I owe! Im aware that I need to pay back what I can however with five years to go I can see this plan failing if I cant manage to save up a contigency fund.
I have to wait 2 weeks to find out if it has failed or if they will agree to a payment holiday to allow me to pay off the credit card.
I also explained I was left with no choice as I need my car to get me to work and needed to get this repair work done - however she did not take this on board.
Im seriously not happy with GT! Im not sure if I done the right thing by being honest about the credit card usage.[:(]
When you spoke to GT cherry did you speak directly to your IP or to a member of the team?? I'm hoping they allow you the payment break to pay off the credit card but you will also need to revisit your I&E to ensure you do have enough income to live on. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
