Hi,
Can you enter a debt into the IVA that you had originally kept out (for whatever reason)
if the debt is in your name but someonelse is paying the loan amount as you got the loan out for them....and now they are unable to keep up those payments....and the IVA was advised of this situation from the start...but has had no contact with the other party at all.....payments have been made on said loan for last 3 years approx.
Chelsea - you need to speak to your IVA company - it will depend on why the loan was left out and how much.
Regardless of who pays for the loan - if it is in your name you will be legally responsible for it, it should have been mentioned at the start of the IVA process. Leaving the creditor out may be seen as preferential treatment of a creditor
Is there any reason why this debt was excluded? It doesn't matter what the reason is, it should not have been left out.
You will be liable for the debt and you need to speak to your IP about this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
ginger3232 wrote:
Chelsea - you need to speak to your IVA company - it will depend on why the loan was left out and how much.
Regardless of who pays for the loan - if it is in your name you will be legally responsible for it, it should have been mentioned at the start of the IVA process. Leaving the creditor out may be seen as preferential treatment of a creditor
Thank you for the reply.....assuming the IVA knew of this situation what is the likelyhood of it being taken into the IVA payments if the third party no longer can pay it and would the the iVA required legal paperwork from the third party saying it was their loan although the loan was taken out by the party that went into IVA when the process of IVA began?
I know it sounds messy....and not sure what way to go with this.....
If it was omitted for a genuine reason and is only a small percentage of the overall debt, there is a chance it could now be included. However, have you proof that your IP knew of it's existence and agreed to leave it out?
If not, and the creditors don't like the reasons for it's ommission they could fail the IVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It really is best to speak with your IP about this as you will ensure case specific advice. Hopefully there will be a way forward for you in respect of this loan. All the best. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
This should have been treated as a creditor all along in your IVA proposal - even if the third party was happy to keep on paying the loan. If your IP firm knew about this, but chose to ignore the fact, they will need to advise you as to how they intend to deal with this moving forward. Excluded creditors can be included into IVAs at a later stage, but the facts surrounding this may well not be treated as genuine mistake for the omission.
I agree with Melanie. The third party should have been paying the money into the IVA in addition to your surplus income and the debt should have been added. Once the third party had paid what was due your payments would have reduced accordingly. This creditor may not be too happy that they were not included and other creditors may not be too pleased that this creditor was effectively paid preferentially.
Thanks for the replies.....however, the IVA have had no contact with the third party and there are no legal documents tying them to the loan...should the IVA had spoken to, corresponded with, the third party at the beginning of the IVA process to ensure that the information that they were paying the loan was correct(even though in other name) so if they defaulted at any time they would be aware that the fault was not ours...Third party does not understand why the loan was not included in IVA and why the IVA never contacted them for proof of debt. This was a businees loan taken out 2/3 months before we went IVA.....third party did not know financial state before entering into the loan agreement.....messy I know....
If you take out a loan in your name, it will always be your legal responsibility. Why the loan was taken out and any informal payment arrangements you have with a third party are irrelevant. You need to speak to your IP as soon as possible to see what they can do and put your mind at rest.
Thank you for the reply......however I have found out that the said loan taken out for the 3rd party is in fact secured to our family home and neither the 3rd party or myself knew this the case. So now I am really stressed as partner dealt with this and we have since split a couple of years ago...although we are still under IVA. what are the options if the 3rd party can no longer pay and we can not pay it as obviuosly our money is all tied up...is there anyway we can add this into the IVA .....really desperate and worried sick...any help/advice would be appreciated.
If the loan is secured on a property then allowances are made for this to be paid on top of the IVA payments.
The only way it can be added into an IVA is if the house is sold or repossessed and the loan then becomes unsecured.
Whose name is the loan in?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
If the loan is secured on a property then allowances are made for this to be paid on top of the IVA payments.
The only way it can be added into an IVA is if the house is sold or repossessed and the loan then becomes unsecured.
Whose name is the loan in?
The loan is in our name (we are in IVA) and the third party has been paying it for 3 years...however they were unaware that it was secured to our family home. All parties need to find a solution that does not involve repossession, selling as we are under IVA.
We went IVA approx 3/5 months after we entered into a business (House Rental) with the third party..again something they were not aware we would do when entering into the loan.
You'll be the ones responsible for paying it, not the third party regardless of who took it out.
I think you need to speak to your IP as Melanie and Michael have said.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
