www.iva.co.uk

Hi all,

Can someone shed any light on what i should do because i have a loan with FLM of £1394 and my best friend is guarantor. Therefore if i don't pay this loan then she will be liable to pay the loan.

Can i continue to pay this loan so that she doesn't pay the consequence of my debt ???

What will happen if i proceed with the IVA ??? I am currently applying for the IVA advice bureau with Melanie Giles and really want to get the IVA up and running if its agreed but this loan is holding me back.

Any advice on what i can do ???

Hi,

I don't know what would happen in this case as all unsecured debts should be included.

Speak to Melanies team about this as they are dealing with you.

Your friend will become liable for the debt. The debt would be included in your VA, but will still have to paid by your friend. You coud ask your IP to exclude the debt, however it's unlikely that the rest of your creditors will agree as its showing a preference. If you can still afford to pay your friend from your I&E then you can continue to do so, but it will have to be included and your friend is liable.

I thought as much. To be honest i was hoping to try and pay this off before the iva started as i feel really bad that my friend has to go through the worry when she was just helping me out. I obviously didn't think at the time that it would ever be a problem but now its come back to bit me on the bum.

My main concern really is will this have an adverse effect on her credit if i continue to pay this from my budget ??

For example with the outgoings allowed from my budget such as hairdressers, sundries emergencies etc i was going to try and continue to pay the loan.

It shouldn't affect her credit if the loan is being paid.