Hi, I have recently signed an IVA Application but didn't mention my student loans

[AD]

Hi, I have recently signed an IVA Application with PayPlan.

I am currently a student, and have an income from property rental. I receive student loans at 3 intervals per year around £800. I have NOT declared this in my income, because i know that the loan is not classed as an income as with any loan. After thinking more on the subject, i have become worried because i didn't disclose i was a student, didn't see the relevance (it has none, i have an income). Because of that i also didn't state i received a student loan, again it is not income, but am unsure whether i should have stated it anyway?. I am not avoiding the disclosure in any way, the money is used nearly as soon as it is in, books etc (i dont drink!), so it isn't of any use anyhow.


Any advice would be helpful.

[ClareSilver]

All income needs to be declared to your IVA provider including student loans. You need to tell your IP about this.

[sponge]

I think I'm right in saying that student loans cannot be taken into insolvancy?

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font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by sponge

I think I'm right in saying that student loans cannot be taken into insolvancy?

That's what i was thinking, which is why i didn't think it was necessary to declare it.

Thanks ClairSilver, will speak to my IP.

[Drew]

It's correct that student loans can't be included as debts in IVAs as they would survive bankruptcy.

However, I would normally mention them in the proposal as an excluded liability

[ClareSilver]

Student loans cannot be absorbed in an insolvency situation, however the income from them needs to be declared.

[sponge]

Well I don’t know the answer form a professional point of view here’s my stab at it

Any income has a potential for tax attraction, loans do not, depending on its nature may actually attract tax relief, and therefore it cannot be described as income in the first instance. For the benefit of accounting it is declared, but excluded.

Just a guess mind!

[Hyperdrive]

Aree Sponge