IVA

[Mikbrown94]

I had my IVA application accepted today and o2 was listed as one of my creditors. I’m confused regarding the next step of my monthly mobile contracts, do I keep using the sim as normal and just pay monthly for the tariff, or will the sim get cut off so I’ll need to go pay as you go? I’ve spoke to o2 but no one seems to know the next step.

[MI5]

My understanding is that the IVA covers your debtors so as you've borrowed the money for the device, you are covered. However, the airtime isn't borrowed money, so isn't actually a debt.

[Anonymous]

They aren't in the UK so probably don't know what one is.

[Mikbrown94]

Ye totally get that MI5, but it is technically borrowed money as you can’t terminate it and still the same length as the device plan. Thanks for your replies.

[Bambino]

@Mikbrown94  Just been looking here: https://www.iva.org/what-debts-can-go-into-an-iva The small print says: 

• "Unpaid Mobile Phone Contracts: Where the phone is no longer being used." Does that apply to you?

[Mikbrown94]

I am still using the phone and tariff (using 2 out of the 3 i have actually). The amount that was put down by the IVA was the combined device amount which made sense, it’s just what happens now that’s confusing haha from the advice on here it seems that I will just be paying the tariff from now on, but I thought the whole point of the IVA is that you are now no longer pay any monthly amounts to creditors?

[MI5]

You'd have to return the sim cards or not use them for that to work, I would think.
Potentially, you could run up a huge bill otherwise.

[Mikbrown94]

I would still be looking to pay for a SIM card anyway so I don’t actually mind still paying the tariffs. Just haven’t been advised on what is happening next which is why i made this forum. I really appreciate the replies.