www.iva.co.uk

Hi,
I've been in my IVA for just over a year now, all payments have been met. I'm new on here and have seen that you should not have a overdraft on your bank account;as it's classed as credit. I was not told this! Now i am really worried that my IVA is going to fail as I have gone in to it a couple of times. Please help me with some advice. Many thanks.

How much is it for and are you in the overdraft at the moment?

If you have used it occasionally, and it is currently in credit, I would ask the bank to remove the facility and therefore there is no temptation to use it in future. If you are in overdraft at the moment, I would confess this to your IP and seek their advice as to how to deal with it. You may get a mild scolding, but your IVA is unlikely to fail as a result.

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 there,

The overdraft is for £500, currently I am £42 in to it. I recently went over due to starting a new job and not getting paid for a month in arrears and with Christmas as well. It's a relief that it is not likely to fail. I will be cancelling it ASAP and speaking with my IP to get some advice!! How do you think I should explain, honesty the best policy? Thanks again!

If you only owe £42 this is immaterial and I do not feel that this warrants troubling your IP. They probably have better things to do, and you have learned a valuable lesson - no credit during an IVA without the IP's permission!

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

Cheers Melanie, I'll sleep better now, ha ha!!
Valuable lesson learnt indeed.

Many thanks.