I want to apply for an IVA

[zac]

About 3-4 months ago I took out a loan to try and consolidate my debts. It did not work as my wife has had to give up work during the last stages of pregnancy and she will not be returning after the baby is born and now I am struggling to pay them back. I want to apply for an IVA but have been told that because I didn't take the loan out that long ago it will be considered as fraudulently obtained money and the IVA will be rejected. Is this true? and what will they do next if they think this is true?

[MelanieGiles]

No I don't necessarily agree with that advice - and at the end of the day that is a decision for that individual creditor. Who are they?

So long as your actions are adequately explained properly within an IVA proposal, you have as good a chance as anyone else depending of course upon the attitude of that particular lender.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[scaredkez]

gee melanie, you really need to get some sleep, you are too commited at times and thats why they all love you, at least i have a day off tomorrow, don't work so hard, but in the same respect there are a lot of people out there looking for advice, and i am sure a lot of us posters are greatful for your support,keep up the good work but rest a little,
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[zac]

The lender is Lloyds TSB. I have heard that they can be difficult. They have the deciding say as I owe them the most

[MelanieGiles]

Thanks Kerry - sometimes I just don't realise how late (or early!) it is! But I am fine so don't worry!!!

Zac - I personally find Lloyds a very commercial and sensible creditor who generally support IVA's. They are represented by a very well-known and professional firm of accountants (KPMG) who are insolvency practitioners themselves - and whilst they require a very high standard of proposal, so long as the facts surrounding the taking of the loan are properly explained ought to be supportive (providing your IVA represents the very best offer to them of settlement).

Did the Lloyds loan also pay off earlier debt to Lloyds? If so, then your exposure to criticism will be somewhat reduced.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Sopty]

Hi Zac, my main creditor was Lloyds and they voted yes to my IVA, though they did want a slight increase in payment, but waited until the last minute to request it, IVA was accepted at 46p in the £, with LloydsTSB having £25k of debt from a total of £60k. From what others say, LloydsTSB seem to be OK.


Cheers, Mark.

IVA accepted, so 60 months to go!!

My one bit of advice, if I can do it, so can you!

View my IVA story blog at: http://sopty.blogs.iva.co.uk

[Oliver]

If the loan was used purely to pay off existing debt in all good faith and I wouldn't view it as a fradulent transaction. As Melanie says if the loan was used to consolidate existing Lloyds debt too this would add strength to your case.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[zac]

Hi

The credit was not used to pay off existing credit from Lloyds, it was used to pay a secured debt off so that I could sell my home and reduce my total debt and my monthly outgoings.

[Andy2]

Hi Zac
Is the loan you have taken out an unsecured loan to pay off a secured loan ? What did you put on the application form to Lloyds TSB ?