allowed to take out loan when repaying IVA?

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boo81

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Post by boo81 » Wed Jun 13, 2007 3:21 pm
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Hi

My boyfriend has an IVA and subsequently poor credit. he now is in trouble as he owes money to various people mainly his solicitor for his divorce.
Technically is he allowed to take out a loan whilst he is repaying his IVA?
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Sarah

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Post by Sarah » Wed Jun 13, 2007 3:37 pm
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Hi and welcome to the forum... Your boyfriend will not be allowed to take out any unsecured credit while he is in the IVA and will be in breech of his agreement if he does. I hope this helps
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ivoriva

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Post by ivoriva » Wed Jun 13, 2007 3:42 pm
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Nope, Im afraid not. He is not allowed to obtain more credit whilst in a IVA - at least not without the express permission of the IP.
All I can suggest, and it depends how much he owes and how much he pays in his IVA, but you are allowed a payment break of upto 3 months in a IVA (if he hasnt already had any). So maybe he could do this (with permission of the IP), and use the money saved to pay back the other people?
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Oliver

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Post by Oliver » Wed Jun 13, 2007 4:58 pm
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He needs to contact his IP as soon as possible as he will not be able to borrow money without the express permision of the IP. The IP is highly unlikely to allow a loan to be taken out for these purposes so your boyfriend may have to try and include the money owing into the IVA or make an arrangement to pay the money back over a period of time.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp
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Oliver
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MelanieGiles

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Post by MelanieGiles » Wed Jun 13, 2007 7:12 pm
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Did the solicitor know that your boyfriend was in an IVA when they commenced work on his behalf? I have proposed a number of proposals for clients in my time, where they have been involved in legal issues at the time of making the agreement, and we have made provision in the expenditure for ongoing legal charges.

A loan is not the answer here, but maybe the suspension of IVA payments for a short period would work, providing he was able to increase his ongoing payments to recoup these sums. As the other posters have said, this must be discussed with his IP as soon as possible for more definitave advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk
Regards, Melanie Giles, Insolvency Practitioner
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