www.iva.co.uk

I have just taken the first steps towards (hopefully) entering into an I.V.A. I realised shortly after speaking with a debt manager that I had not disclosed some shares which have been held in a nominee account for a few years. I was not even asked whether I had any assets over the the phone.
The current value of the shares is approx £2.5k.
I am wondering if there will be any consequenses if I was to sell the shares now and use the money to get some repairs done on my car. Also I owe a few quid to the mother in law.
I have not entered into any agreement yet but if I went into the IVA without disclosing my shares, then my creditors may suspect that I am not being honest with them wont they?
Many thanks
Pete

What information have you been asked to provide at this stage?

I would recommend something that I am a great believer in full disclosure. If you don't you can guarantee it will come back to haunt you.

From this post, it sounds to me like you have only made initial enquiries. If you are further down the line than that and the IP has not asked about assets, I would be seriously concerned and thinking about changing IP.

Your creditors would take a dim view if you did not disclose them.

That said at the moment you are not in an IVA and as such you are free to do with your shares what you will. A warning though ... if you sell those shares and have the sale proceeds paid in to an overdrawn bank account, if the bank has had wind of your intentions it is within it's rights to use those funds to clear your overdraft and close your account. Just be wary of the banks terms and conditions.



Tell it like it is.

You should not dissipate assets prior to declaring yourself insolvent to pay off associated creditors. That is an offence under bankruptcy law, and is simply not the right thing to do.

With regard to essential car repairs, i take a differing view as you do need to have a reliable car to get to and from work. So if these are important, I would sell the shared, get the work done, and put the balance of the monies in a deposit account to be handed over to your IP as part of the IVA proposal.

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

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MelanieGiles wrote:

You should not dissipate assets prior to declaring yourself insolvent to pay off associated creditors. That is an offence under bankruptcy law, and is simply not the right thing to do.

This is of course correct. I must admit I took the statement quite literally, as 'a few quid', which was probably un wise.[:)]

Tell it like it is.