IVA is there to deal with the debts. With the help of an IVA, you will be free from debts without facing any harassment. But, it is not at all logical to violate the terms regarding the IVA payments. This will slow down the debt repayment procedure. You can stop the payment completely, only if you become bankrupt.
That is why debt advice is necessary from the Insolvency Practitioner or the IVA supervisor when you are unable to continue the payment. Moreover, apart from the payment, you must not hide any type of information regarding the assets that you have. Let’s see the consequences of hiding money from IVA.
Reasons why you should not Hide your Assets
Hiding money from IVA is not at all legitimate. Whenever you are opting for an IVA, you have to give every detailed information about your income, expenditure, assets, liabilities and others. In case you are not providing the actual details, or hiding the assets, this will eventually get revealed when the inspection takes place. If they catch you hiding the correct information, then you might lose the assets eventually.
The Consequences of Hiding Money from IVA
You might know that the IVA is regulated by the court that is governed by the government of the United Kingdom. That is why providing all the correct information to the Insolvency Practitioner will be the best idea. If you don’t do it, then there is a high chance that you might have to go to prison. In addition to that, you will also lose all the assets you have. In case, bankruptcy occurs, you are going to lose all the remaining money you have.
Is there a chance of taking you to the court?
Hiding money from the IVA will lead to critical circumstances. If the inspection executives of the IVA finds out that you are having a good amount of money, and still making excuses for not paying. Then, the first step will be to make you visit the court. Extra costs will be added when you hire someone to deal with this matter for you.
What about Financial Changes?
Always remember that the IVA works legally. It is a formal agreement between you and the creditors. So, any type of changes in the IVA, and hiding it from everyone is not at all a good idea. Whatever the progress result be, always try to keep informing the creditors. The payslips and other types of papers will work as proof or evidence regarding the changes.
What about the Windfall Clause?
In the IVA, the Windfall clause takes place when you suddenly receive a good amount of money from somewhere. Thus, this incident must be informed to the creditors, otherwise, it might affect the IVA process. The Windfall clause might have the power to recover all the additional charges that are already attached to the debts.
Did your Payment rise while you are on IVA?
Are you planning to hide the actual money you have when you witness a legal rise in the payment? No, you shouldn’t do that. If the rise takes place, then talk to your Insolvency Practitioner immediately. After that, the IP will talk to the creditors in front of the IVA supervisor, finding out the actual reason for the rise of payment. If necessary, show your actual financial condition so that the rise may be turned down to some extent.
Inform them about the Extra Incomes
Several types of bonuses, allowances, payment on part-time, overtime and others are generally regarded as the extra incomes, apart from the salary. When you are receiving these types of income, never hide it from your IP. According to the terms and conditions of the IVA, you have to give a minimum of 10% of your extra income to the monthly IVA payment.
Have you skipped the Payment?
If you are willing to use the payment for some other activity instead of paying for the IVA, then you are in a lot of trouble. So, it will be a wise idea not to miss any instalment payments. If it happens, there is a high chance of being the failure of the IVA. On the other hand, most of the creditors might not allow this type of irresponsible activities. Thus, they can put pressure on you for the debt repayment, which will not be comfortable for you.
Never Hide Your Expensive Car
When you have an expensive car, it might be considered amongst the assets. That is why informing the IVA supervisor about the car. If you don’t do so, then it might result in losing the car once and for all. Always try to mention this one in the list of expensive belongings that you have.
Having Confusion in sharing the Bank Details?
Bank details are important and your creditors, IP and the IVA supervisor must have the details. This will provide you with financial security. Moreover, they will also understand your financial situation. If you hide these details, then the creditors might doubt.
Important Facts to Remember
IVA is made to save you from the debts. If you don’t co-operate with the IVA, or follow its terms and conditions, then it will be impossible to proceed with the scheme. If the IVA cancellation takes place, then you might face a lot of trouble. On the other hand, ask yourself, do you have more than enough money to go for another IVA, or opt for a Debt Management Plan? NO. Thus, it is always recommended to consult with your IP and then take any step. Moreover, try to provide all the correct information before the IVA starts.