Im currently in the process of setting up an IVA, ive completed the paper work, signed the documents and provided all my creditor and bank statements.
I do though have a loan that was took out by my Dad 8 month ago for 60 months that Im paying him £190 per month for. When I went through the application process I was advised that I could still pay this to him and it would not be a problem.
I received a call yesterday to say the paper work was going to be sent off and they are looking at 24 Sept for my IVA decision date, however last night I got a further call to say that the IP who had looked over the account said that the loan to my father needs to be included in the creditors and a copy of the IVA letter sent to him, they would list it as £1 and I can still pay him the full amount but he needs to be included. All I am worried about is I didnt want my family knowing about what was happening.
Has anybody heard of this and is this correct, also I opened a new bank account with Lloyds Tsb as I currently bank with Barclays Ive read on here that Lloyds shut accounts when people enter IVA - is this correct, my IVA company advised not worry that they hadnt heard of that and that only accounts with creditors would be closed. Again and advice on this would be appreciated as I went with Lloyds as non of my credit is with them.
Your father does not need to be included as a creditor in the IVA and written to along with other creditors if you do not wish him to be, however the debt you have with him must be declared as an excluded debt and reasons given why. Your IP cannot say for definite it will not be a problem you continuing to pay the £190 per month as it is up to the creditors to agree that as you will be giving preferential treatment to a personal creditor. It depends how your IP has presented this payment in your budget. Be clear with your IP that specifically request your debt with your Father to be excluded and that you do not want him advised of the IVA proceedings.
With regards to your bank account I have not known of LLoyds TSB closing accounts if you do not have debt with them. If you are concerned about it check with them, there are always plenty to chose from and better you know now if there is going to be a problem.
Let us know how you get on about the loan with your Father and I look forward to hearing how you are getting on in general with your IVA journey - we're all here to help and support along the way.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
The loan wasnt originally included as part of the IVA and was just as another monthly outgoing and all was fine with the budget but when the IP checker at the company I am going through looked at he said it needed to be included as otherwise they would say as the debt is not in my name its not my responsibility and I should pay £190 extra into the IVA which is not an option for me as my Dad took this loan out for me in good faith. Im not really sure what to do.
If I ask its not included does that mean I would have to pay the extra £190 to the IVA and also £190 to my Dad as I just dont think I could afford to
You can ask for the £190 payment to remain in the budget and that your Dads loan is excluded from the list of creditors - your IP can propose both to the creditors and it is up to the creditors to decide, not your IP. If you do not want your Dad to know and you cannot stop the payments then that is the scenario the IP needs to propose to the creditors. If they reject that then you will need to decide what you want to do and if you are not prepared to do what the creditors ask (stop the payments etc) you may have to look at an alternative solution.
You should not be expected to pay the £190 twice - if it is to come off the budget that means you are to stop paying it to your Dad and if that cannot happen your IP needs to know this. Do not agree to anything you are not happy with as you could be committing yourself to an IVA that you later are not happy with.
Let us know what your IP says. Who are you with - they may have a representative on here.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Im with Freeman Jones, They are calling me this morning and I will definately ask if it can be proposed to the creditors that I can continue to pay the £190 to my Dad separatley, they advised that I would also need to show the loan agreement which my Dad has but I do have proof of the monthly payment to my Dad on my bank statement, not sure if this would still be necessary too.
Do you know who the rep is that I may contact on here?
Thank you again youve really helped as I just didnt know what to do
I do understand it’s difficult when money is owed to a family member and the reasons why you want to keep this a private matter.
Your IVA proposal is a legal document that we prepare on your behalf from information you have provided and verified. All creditors (secured and unsecured) whether that is family/friends, credit cards, loans and catalogues for example need to be disclosed and notified as the proposal needs to be fair to all creditors regardless of who they are.
As you’ve already mentioned we are proposing that you be allowed to repay the loan to your dad in full, whereas other creditors are likely only to receive a proportion of their overall debt back. All creditors involved do still need to be notified as they are all eligible and entitled to vote at the meeting of creditors.
We are duty bound to ensure that the information contained in the proposal is fair to both parties (you and your creditors) and that the information included in this document is honest and accurate.
I’ve spoken with the team and we are due to be calling you this morning so we can discuss your options further.
Thank you
Sarah Jolly IMA CMAP - A member of the IVA team at Freeman Jones
Thanks for your reply. Im just wanting to make sure I get this right, as the loan was taken out in good faith as a last attempt to sort my debt out using my father.
I just want to make sure that all avenues are explored before I have no other option but to advise my family of my situation, Just a bit confused as Tina seemed to think from her posts that there were alternatives and was just wanting to explore them before I go down the family being informed
Unfortunately FJ don't have a representative on here that I can see. There is no reason why FJ would not propose your IVA in the way you want it - if they refuse you may want to ask yourself are they the company you want to act for you. I am sure it will be fine - have your chat and hopefully you can agree a way forward that you are happy with.
You should really show the loan agreement if you can as the £190 could be for anything. I am sure you could think of something to tell your Dad so you could get a copy (updating your filing etc???)
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
Thanks for the support, I was advised that there was no way to proceed without my father being listed as a creditor to ensure he receives the full amount for the loan every month from me so as to not put him into hardship. Fj advised that their ip could lose their license if it was not disclosed as its against the law not to under this situation.
I therefore have had to have the difficult conversation as felt there was no alternatives for me, hope time will mend the issues from it.
IVA date now set as 26 sept just hope it all goes through now as there is no turning back now not sure what ill do if it doesn't go through as I've taken a leap now.
