www.iva.co.uk

Hi,

I have had my IVA for two years, at the time of taking out my IVA I didn't choose to include my overdraft as I was afraid they would close my bank account if I did, and at the time I was a director of a company, and my personal account was with the same bank as the company therefore I was afraid they would close the company bank account also. I have now left the company as a director and was wondering if it is at all possible to now add my overdraft to my IVA?

Thanks

I'm not an expert but I don't think that's possible as I'm fairly sure that debts can't be added retrospectively. What does your IP say?

Hello Stewart

Normally the advisers here will try to offer as positive a comment as is possible but, in your case, I'm finding it rather difficult.

There are provisions to allow creditors in to an IVA where, at the time of preparation of the proposal, they were omitted innocently.

Doing this can trigger other clauses in the proposal that relate to any minimum dividend that is required or limiting the value of unknown creditors that can be admitted late.

There are also clauses in the proposal that deal with material omissions and false statements in proposals and these generally bring about a termination of the proposal.

If I was your Supervisor I have to say that I would taake a very dim view of these facts and that, at best, I would agree to putting a variation to the creditors to allow the late claim but only on condition that you agreed to extend the IVA to ensure that the dividend originally offered was actually acheived.

I am pretty sure that all IP's IVA documentation is clear that it is your responsibilty to ensure that all creditors are included and that there can be very serious implications of making false declarations.

In your case, as an ex company director, I would have expected you to understand this and whilst I understand why you did this I'm afraid that it isn't a justification.

Creditors get pretty bad press around here but I would have sympathy if one popped up on this thread and stated that they had been misled in being offered the information to consider how they should vote on your IVA,

Not much chance of that happening, I'm sure, and I would suggest that you speak to your IP about this quickly.

I couldn't agree more with Catallus' advice here - and I would take a very dim view if one of my clients had deliberately withheld details of a creditor - as we specifically ask business clients if they have included all known and contingent business debts as well as personal ones.

If the debt is relatively small, creditors may well look to agree to it being included, but you will need to personally meet any additional costs incurred by the IP in putting the variation forward.

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

Hi
Didn,t we have a similar question earlier today ???
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp