If I were to have a IVA approved but then took in a lodger who paid cash in hand, no trace through banks etc. Would I get in trouble with who my IVA is set up with if it were to ever be found out?. On paper i would be letting a friend live in my spare room for free.
It is always best to be totally honest about things to your IP. If you did have to give the money over then it would mean your creditors get more back and you might even find that you could finish early if you paid back 100p in the pound to them.
As to them finding out, there is always that possibility. If anyone knew about your IVA, and don't forget that your name will be on a public record, then they could quite easily phone your IP and tell them. It has happened in the past and could result in the IVA breached and you getting into trouble.
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
The more people that take the attitude of hiding income the harder it is for the majority who just want their debts dealt with,and are willing to play ball. Right now there is give and take with IP's but the more people try to mask their income the more "gestapo" like the IP's will have to become!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I agree, it is better to be honest about your additional income. It is really not woth risking your IVA. I would imagine you would be allowed to keep some of the cash to cover the increased utility bills anyway.
I think to maintain an IVA throughout its course and for a good working relationship with your IP you would need to be 100% honest and upfront.
There are ways that you could be found out and not always by your IP, but how about the taxman should you be declaring extra income to him? I'm not sure on the rules of letting a room but just wondering? x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I wouldn't advise doing such a thing either, I'm in the same boat and have declared the two people who rent rooms from me, I cant rest easy knowing I've done the right thing, stuff like that always comes back to bite you
I suppose at the end of the day you have to work out whether it would be in your interest to take in a lodger, after all theres no point in giving up your space and freedom if you aren't going to get any financial gain. That is unless you dont dseclare it in your I&E. I would imagine that there are a lot of people out there that arent completely honest about this but like the others say is it worth possible fraud charges and IVA failure?
I can honestly say I'm in the 60% who is totally honest with their IP, I contact her about any changes and I'm sure she appreciates my honesty and knows that I am. I do sometimes feel I'm bothering her but at the end of the day it's a working relationship built on trust x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
