www.iva.co.uk

Hi, I have 5 student loans amounting to 20k, with debts from other creditors amounting to 12k. This alone is not above the 15k threshold for an IVA. So, I spoke to my IP with respect to the inclusion of my Student Loans, only for him to inform me that they "dont touch them since last year" Is he telling porkies? I read lots of conflicting information on here and other websites. What is the current law on this? I am aware that Student Loans are not included in bankruptcy... Fair enough, I am not persuing this route though. Obviously 20k is the largest of my creditors. What would be the outcome for me if the SLC voted no? Thanks for your time.

Jim

Hi Van Tee and welcome to the forum

Your IP is not "telling porkies", the Student Loans Company rarely accept IVA proposals. If you were to put forward and IVA proposal and they rejected, then the IVA could not be accepted as they have more than 50% of the votes.

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

Wow that was a quick reply Melanie, thank you. What would be my options if an IVA failed? Regards,

Jim

Hi Jim

If you genuinely cannot afford to make your contractual repayments to creditors, then you really only have have two choices - bankruptcy proceedings, or a Debt Management Plan. As you do not avoid the Student Loan repayments under bankruptcy proceedings, it may be worth looking at a DMP as a first alternative. Are you currently earning above the Student Loan repayment threshold, and if so howw much is being deducted from your salary. And what do you reckon your disposable income available to creditors on a monthly basis would actually be?

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

Hi again, I'm not actually sure what my contractual repayments are as I've been out of the country for the last 12 months and have been using a Canadian bank account in this time. Now i'm settled back in this country again, its time to re-address my student debts. I'd be guessing that my creditors repayments will currently be at around 300 pound per month.

I've been giving this some thought over the last couple of days... I think i'd like to push my IP to try for an IVA with my student loans included. If this fails will I be in a posistion to consider a DMP at this time?

In answer to your other questions, I am not earning over the Student Loan repayment threshold and I believe my disposable income is around 200 pounds per month. Many thanks for your continued time.

Jim

Jim can I ask why if you haven't started to payback your student loans you want to avoid them ?

I would be suprised if an IP is prepared to invest there time and money into a proposal with little chance of success ??

Van_Tee wrote:

In answer to your other questions, I am not earning over the Student Loan repayment threshold

Hmm, I see your point on the IP's time investment...

Regards, Jim

And I absolutely agree - no-one is going to run this case for you without upfront payment for their nominee's fees, and why would you want to waste that money even if you could afford it?

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