If i owe money to family

[fo211]

If i owe money to family, will they get their money, will it be in a lump sum or will they have to wait?

[Adam Davies]

Hi
The general rule is that you have to include your family debts in your IVA proposal and they will be part of the voting procedure,however they will be asked to step aside for dividend payments,so they will have to wait until your IVA is concluded for you to then make arrangements to repay them.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Can I just clarify that "will" into a "may" Andy. Creditors do not always ask for this, and I have a number of cases where family loans are correctly being ranked side by side with other creditor claims for dividend purposes - and why not!

I generally only advise asking family members to waive claims, if this is needed for minimum dividend purposes, but other IPs may have different views.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[james.c]

i owed my Mum £500, which the IP put in to my proposal but agreed that my mum got paid back once the IVA was completed

no matter how bad money gets, theirs stll alot more important things in life

[Adam Davies]

Hi
Thanks MEL !!
I just wonder how you would verify a family debt ? Could be open to abuse
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

I ask for bank statements from both sides in order to show that monies did transfer from one to the other. You have to be able to prove the claims at the end of the day to be able to rank for a dividend payment, so the onus of proof is the same, if not higher, than from a normal trade creditor.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi
That's fine,thanks
There was a report in my local newspaper a few years ago that a businessman and his accountant had made up creditors in order for his IVA to be accepted.
Both had suspended jail terms

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Absolutely - and the same sort of sentence should be levied on the Northern Rock preference in my opinion as well!!!

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp