question category: IVA

IVA Advise Required - Can Anyone Please Help?
Submitted on: 26th Mar 2009 by Non-Member | Total Answers: 1

Hello,

I’m looking into getting an iva as I can’t afford to pay all my debts but I’m worried about what will happen to the money I owe my mother.

She got a remortgage loan out for me and my hustband to buy our house so we pay her loan of £280 a month.

There is no way that she could make the payments without us paying her so I’m wondering if there is any way of us still being able to pay this full amount and be able to set up an iva.
If not can we try and increase the figures of what we spend each month for other items to try and cover the £280 and provide this information to our IP?
I really don’t want to try and tell lies but, as stated before, my mother needs this money.
Could I tell the IP the truth and they try to hide this money that we pay to our mother?

Thanks for your help.

Hayley

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Re: IVA Advise Required - Can Anyone Please Help?

The legal fact is that you owe X amount of money to your mother. She owes money to the loan company but that is irrelevant to your IP as far as your arrangement goes.

Your mother is an associate creditor and should be included in the IVA as such. She gets a vote on whether your IVA is accepted or not.

There may be provision for your payments to continue to your mother in your expenditure, speak to your IP about that - otherwise the fact that your IVA has reduced your payments to your creditors may allow you to continue paying your mother as you implied. You must speak to your IP though.

This question was answered by Debt Advice Foundation, an independent UK debt advice charity. If you're considering entering into an IVA, Debt Advice Foundation provides a free, confidential helpline and can advise you on whether you qualify. Click here to find out more.

Submitted on: 21st Apr 2009 by Darren Member

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