can my family member be included in IVA

[jimmyda]

if i apply for an iva can the list of creditors include a family member....eg can my family member be included..one gave me £18,000...or will a credit card company take preference even if the amount owed to the credit card company is smaller

[kallis3]

I'm not 100% sure, but I think you can. They are unsecured creditors the same as the credit card companies and would be paid the same dividend.

[MelanieGiles]

Debts to family members should be included, but your other creditors may wish them to forego their right to receiving a dividend, in order to give more back to the banks.

I suggest that you seek advice from an IP on this point before proceeding further, and you will need to be able to prove the family member's debt properly.

[kallis3]

Apologies for that Melanie.

If you can include their debt, but they might not get a dividend, do they actually get any money back at all?

[Adam Davies]

Hi
Not from the IVA.They normally stand aside but once the IVA is paid the debtor can then start repaying the family member.
Regards

[whatevertodo]

I know that the £500 I owed my Mum wasn't included in my IVA, It was mentioned in the proposal that the amount would be wavered or held until after the IVA. I guess its hard to prove the £18,000, as no agreement was ever signed.

[MelanieGiles]

Could the person who lent you the money provide bank statements showing the payments made to you, and would you have corresponding bank statements showing the receipts? This would be a good start to providing the evidence required.

[kallis3]

Thanks Andy.