I am in the process of arranging an IVA and my proposals are currently being drawn up. I have an overdraft with a brand new bank which was taken up a few weeks before deciding to go for an IVA and I have used all of my overdraft limit; despite having no funds going into the account. My IVA company have said that this will be added to the IVA anyway but it could get looked at as Fraud?
I have needed to use this overdraft as its my daughters birthday soon, plus Christmas coming which is a very expensive time and it really has been supporting me for everyday things.
Can I get into trouble over this or can an IVA be refused based upon this? I am really confused as I understand I cannot use any credit once the IVA has been finalised but what about while the IVA is being set up?
This probably won't be viewed favourably as you should be getting used to living on a strict budget now.
The creditors won't be interested in the fact that Christmas and birthdays are coming up. There isn't an allowance for them and you have to try and save up out of your other allowances. I'm afraid you will have to cut back on what you spend on these occasions.
I would open a fresh bank account now with someone who is not a creditor and one without and overdraft facility as you won't be allowed one in an IVA.
Have you stopped paying your creditors? If not, then I would do so and build up some contingency money and it will help you fund your everyday shopping.
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
WARNING be very careful about entering into an IVA.!!!!!!!!!!! It was the worst thing I ever did , more so than the debt. MACKENZIE GOLDBERG JOHNSON LTD, DO NOT TOUCH THEM WITH A BARGE POLE, WARNING, WARNING
MOST IVA's run smoothly Wendy.ox so its a little unfair to warn scared vulnerable people not go enter one.
There are loads of companies out there that have exellent reviews and to be fair, not everybody can please everybody.
We had a similar ish siuation. I borrowed money to find somewhere to live when we lost our home. We didn't know at that point we could even have an IVA as our debt problem was secured borrowing (mortgage arrears and secured loan). When we did discover this was now unsecure we went down the IVA route. We were asked about the loan a fair bit, but in all honesty we intended to pay it back and it was taken out before the IVA process began.I don't think that creditor voted.
I agree with MrsS, although an IVA may not be for some it certainly was the correct solution for me. I'm the happiest I've been for years and I truly mean that, the constant juggling at the end of the month has been taken away from me, along with the pressure and the stress.
I think if anyone entering into an IVA has done their homework and gone into an IVA with their eyes wide open then you've nothing to fear, you'll need to feel 100% with your IVA before you sign a thing. Make sure you know the pro's and con's of all solutions. Choosing a good IP to work with you will have given you the pro's and con's along with the other debt solutions suitable for you, it is then your choice.
In my opinion some think an IVa is a quick fix that is going to be an easy ride to get debts written off and it's easy way to debt freedom, easy it's not but satisfying it is for me at least. I've had lots of things to try me along the way and it would have been easy to give up but I won't.
For anyone reading, take a look at the blogs that are on the site, they're honest and show the trials and tribulations of life in various debt solutions and all from us the forum members who are in varying stages of their journey to debt freedome whichever path they've chosen to take.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Sounds like you have had a dreadful experience. Can you put some meat on the bone, and give us some more info as to why we should be very careful entering an IVA?
Wendy.ox wrote:
WARNING be very careful about entering into an IVA.!!!!!!!!!!! It was the worst thing I ever did , more so than the debt. MACKENZIE GOLDBERG JOHNSON LTD, DO NOT TOUCH THEM WITH A BARGE POLE, WARNING, WARNING
I agree with Mrs S that you should not be scaring people who are looking to take that step.
Most IVA's run very smoothly.
It sounds as though you have had problems with a particular company, however it is wrong to tar them all with the same brush and we have some excellent IP's posting on here.
I am very happy with mine - I can relax, don't dread the phone ringing or the postman coming.
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
Wendy sorry you have had a bad experience with your IVA but would agree with others, you only have to read the majority of posts to see how the IVA and some noted IP's/Companies have had a positive life-changing effect on those that have been successful...and not just financially.
Hope things get better for you.
I came into this world with nothing and still have most of it left!
Could you tell us a little more about your IVA experience and why you found it so bad. It is good sometimes to understand about when things go wrong as when as they go right.
