I do not have an IVA but I know someone who has. What would happen if they received moneys in access of 85k for say a pension for example and didn't tell their IVA about it and also receives additional monthly payments which goes into a bank account that their IVA doesn't know about and all their IVA see is their normal wage?
If the lump sum comes from a pension draw-down, you may find that this was specifically excluded within the terms of the IVA proposals. Best to get the person concerned to make their own investigations in this regard, as they ought to be concerned if they know they are deliberately withholding monies from their IPs. Most IPs have noses like bloodhounds for this type of thing!
Gail I think if your friend wants to try and evade the system then its their perogative, however, when they come to you cap in hand because their IVA has been failed, possibly in addition getting investigated by fraud, face losing their home and feel sorry forthemselves, then you can tell them they only have themselves to blame.
Sorry but IVA's are literally a lifeline for most people and those seeing an IVA as an easy get out clause, with cash to spare like that, when others are living hand to mouth, worrying about where the next food, kids clothes or heating repair money will come from, wont get much sympathy from many on here.
I came into this world with nothing and still have most of it left!
As Mel says there may be special conditions attached to the IVA proposal so your "friend" should look at this and discuss with their IP direct.
Personally while we were in our IVA, I couldn't even not tell our IVA company if we earnt an extra £50 in a month - I think it all comes down to individuals conscious and honesty with their IP and wanting to pay their creditors back the most they possible can during the term of the IVA.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I think that an IVA is stressful enough without trying to be devious. We told our IP every penny we earned and so went through our IVA with a clear conscious. At the end of the day if they can live with them selves then its up to them but then they cant moan if they are caught out.
I agree with all the advice here, and I would add that your friend's 'secret' bank account will most likely be on their credit file.
Not sure if IP's can routinely access their customer's credit file, but I'm assuming they could, if they smelt a rat, and decided to investigate further. In which case, it won't stay secret for long, and the balance will show as well.
I am sure the law would take a dim view of concealing £85K + an extra salary, and fraud charges could follow.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
