IVA rules

[SharkInTheWater]

I know this is absolutely none of my business, but AIBU to think being given an IVA under these circumstances is completely ridiculous? And regulations around them should be more strict?

So family member has circa. £10,000 worth of debt and had just been granted an IVA. Now not one single penny of this money has gone on ‘essentials’, it’s been spent on multiple long haul holidays, cruises, £100+ pairs of trainers, designer clothes etc.

They’ve filled in paperwork which is completely made up - I’ve seen it because I was asked to pay some towards the debt and refused because I know what it’s been spent on. They’ve put £250 for rent - they live with a parent rent free and have never paid rent anywhere. Travel costs of £150 - they get lifts to and from work at no cost to them. £200 for groceries, again live at home and contribute nothing to food shopping.

So basically they’re getting out of paying all their debt, paying less each month towards what they owe, and having more money for themselves because nothing of what they’ve said is spent on essentials will be.

I’m feeling pissed off about it because I’m struggling making ends meet, haven’t had a holiday abroad for years, but second hand clothes to cut costs, and they’ve freely spent other people’s money and are now getting away with not having to pay it back.

I've just finished an IVA. It's been 5 long years of budgeting, no credit, no savings, a banger of a car and now only after year 6 able to start afresh, with no guarantee of being able to get a mortgage or finance in future. It was the hardest decision I've made, but ultimately the right one.

During an IVA, you're legally insolvent, have your name on the public register for all to see. Your finances, pay slips and bank statements are scrutinised on a yearly basis by your insolvency practitioner, so any irregularities will be clearly seen. An IVA is no walk in the park.

If what you say about their spending is true, then they will be found out. But otherwise, why don't you focus on your own financial well being, and step away from your family member if you feel it's so unfair to you?