Debts to friends / family members

[puppy]

Hi

I have a couple of debts to friends & family, I was wondering if it was possible to add them as creditors so that they get some return then I'll pay back the rest post iva?

Thanks guys!

[Niobe]

Hello,

Yes, they should be added as they are unsecured debts. They will get the same dividend as the rest.

What you do post IVA completion is down to you.

[Pennyless]

As Harpic says "yes" you can add them as creditors as long as you provide suitable proof of their loan. I owed both my Son & daughter sums of money, for which I provided copies of their bank statements as proof. They subsequently became creditors and as well as recieving a dividend, also receive a copy of my IVA documentation (proposal etc).

[Michael Peoples]

Let us hope they vote yes!

[Niobe]

Good luck puppy - hope you get sorted and of course remember that we are here for any questions or support you may need.

[puppy]

Thanks for the replies.

I'm really torn between BR & IVA. I'd definitely be subject to an IPA if I chose the BR route which is fine, just wondered if anyone knows if the same rules apply re: overtime / pay rises?

One of my main reasons for choosing an iva was the ability to rebuild my credit history sooner for a mortgage, but I'm now wondering if this is actually the case.

Thanks again.

[Niobe]

I believe the BR allowances etc are more strict than those in an IVA. You may well have to pay across the whole of any overtime but I do stand to be corrected on that one.

Regardless of whether you do IVA or BR, both will remain on your credit file for six years from the date of acceptance.

[Broke of London]

Hi Puppy - what a cute name!!!

We have a sister site dedicated to BR which may be able to help answer some of your questions:

http://www.bankruptcyhelp.org.uk/forum/

In an IVA and BR your credit file is shot for six years and a few banks seem to classify them as the same thing.

[puppy]

Thanks BOL!

I've had a look on there & think I'd be happier with IVA overall. I feel happier with being able to do overtime when I need extra money, otherwise the whole thing makes me feel too trapped & panicky!!

I've worked out my total debt & IVA fees, am I right in thinking that my monthly payments can't exceed this / 60, no matter what my disposable income? I don't have my own home anymore so there's no equity issue.

[MelanieGiles]

No that is not correct puppy. Your payments will be based upon your disposable income and not necessarily limited to 1/60 of your debts plus costs. However if your disposable income works out as more than this I would have to question whether an IVA would be the right solution for you.