I am seeing a client next week that has over £20,000 of unsecured debtand also has a loan of about £6,000 that his mother took out for him as well,he pays her the monthly payments.
This client is looking to usethe IVA process but has been told that this loan has to be included in the IVA and that his mothers loan will have to become involved in the arrangement.
Is this the case?
Also,
Will an IVA arrangement affect my clients position as a future director with his company?
Hi there and welcome to the forum. Can I be cheeky and ask you waht profession you are in? Are you an accountant?
I am afraid that the advice your client has been given is correct - and that his mother's loan will have to be included. I wonder if that will cause her hardship if she is relying upon those repayments to be able to pay her own commitments? Your client also ought to have been informed that the other creditors might ask his mother to stand outside the arrangement and not recieve any dividend payments at all - so do bear this in mind as well.
An IVA will not affect his position as a company director.
