Considering an IVA, but son in private education

[c.b]

Considering an IVA, but son in private education. Would this expense be regarded as an outgoing, or not considered ? Also worried that I will be forced into an equity release scheme.

[MelanieGiles]

Hi cb and welcome to the forum

I have several clients with children in private education, so it can be allowable so long as it is justified. Creditors would be quite reluctant to be responsible for disturbing an innocent child's eductation, and there has been recent caselaw which makes this a legitimate expense under bankruptcy proceedings.

You will have to be prepared to consider equity release if you wish to propose an IVA.

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

[iva experts]

Hi c.b,

In my experience I have seen cases where the individual's children are in private education. Usually a provision is made in the monthly expenditure to save for the fees needed. This of course would have to be approved by the I.P but I definitley dont think that this would stop you from entering into an IVA.

In and IVA you have to pay back to creditors as much as you possibly can, this means if you have a house you will be required to release any equity available in that house usually after 4 years.

Best Regards. IVA Experts