dont want to include student loan in iva

[frazzled1234]

Hi,

Is it ok not to include my student loan in my iva as mine already comes automatically out of my salary and has done since i started work.

Do i need to include this in my total debt figures when i show my IP my financial info. I am pretty sure student loans are not covered in IVA's and dont notice them taking that money as I never had it anyway!

any advice would be good - many thanks

[Adam Davies]

Hi
You have to include it but your IP will probably propose that it is excluded from the arrangement and paid seperately to your IVA.
Regards

[carlmcmullen]

If your Student loan is post 1998 then it will have to stand outside the arrangment and not be included.

The Student loan would aslo stand banrkutpcy.

Your IP will be able incorporate these payments within your I&E.

Carl

[MelanieGiles]

Sorry - I don't agree with either post on this occasion.

I have many clients with Student Loans debts which are included in their IVAs, and so long as the debt is less than 25% of the aggregate debt - a rejecting vote can be outvoted in the event of acceptance votes from other creditors. In my experience, it will take some time for the Student Loans company to return monies extracted from a client's salary directly, but this will happen eventually with some pressure from the IP!

The Student Loans company have a high dividend acceptance criteria of 90p in the £, which is largely unrealistic. And why should this creditor gain preference over the other debts?

[carlmcmullen]

Am i not right in saying that Student Loans stand bankruptcy ?

[MelanieGiles]

That is correct to make that point Carl - Student Loans are not discharged under bankrutpcy proceedings.

[carlmcmullen]

If they stand bankrupcy how come they can be included into a IVA - i have always been led to believe they could not be included if it was post 98.

[MelanieGiles]

I guess it is just how the legislation surrounding these loans works. Upon what authority are you relying on with regard to post 98 loans? I have recently had two cases accepted with such debts with little bother - and had the Student Loans company return monies to me that they had continued to deduct post-IVA from my clients' salaries. They would hardly do that if we had fallen foul of the rules.

[carlmcmullen]

I am only relying on information given to me from a previous firm i use to work, i was aware of the high dividend hurdle but beleived this to be pre 98 loans which is when the legislation changed.

I have to agree i see no reason why they should be a preferred creditor and dont really understand why the legislation allows them to stand bankruptcy.

[MelanieGiles]

Give it a go the next time you get a case with such loan, and let us know if you encounter any barriers.

[carlmcmullen]

Definatley will

Thanks