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Hi,

I am just starting the process of setting up an IVA and have just had the first conversation with my prosepective IP.

They have informed me that I must add my student loan of around £15000 to the total debt. I've just read on another topic that student loans taken out post-1997 can't be added to an IVA. I took mine out in 1999.

The student loan represents about 22% of the total debt.

Do I have a choice in if it must be added?

Thanks for you help.

I thought you had to declare it, but not necessary include it in the IVA, as I thought the Student Loans Company only accepted IVA's with a very high p per £ percentage. That is unless your Student Loan represents a very small % of your debt, which in this case I would include it, but expect SLC to say no to your proposal.

As you say it is 22%, you would need all of your other creditors to vote yes (78%), as you need 75% to pass.

However the *new* student loans (ie. the one you have), CANNOT be put into a Bankruptcy, if that was to happen, as SLC can get repayments eventually through deductions from your pay.

Yes - you should certainly declare the debt, and if they are only owed 22% providing your IP gets acceptance votes from all of the other creditors the Student Loan company will be properly bound by the terms of the IVA. There is no reason why this creditor should get unfair priority over the other creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

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http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp