Both associated creditors and secured creditors can and should be included in IVAs! I will be very interested to hear Nick's views however, as he may know something that I don't - and I'd be interested to know about the authority which says these type of debts cannot be pursued at Court as well.
Thanks for your replies - much appreciated! I did tell Payplan at the outset about the debt to my son and I was definitely told he couldn't be included.
I hope Nick can come back about this tomorrow and help you out.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
In our experience, unsecured creditors and their voting agents would normally not allow an associated creditor(ie a family member) to receive a dividend in an IVA, without there being a formal loan contract drawn up(including details of repayments) at the time you were lent the money. Creditors will ask to see a copy of this contract and also ask for evidence that the money was lent before agreeing to admit them as a normal creditor who will receive a dividend.
As you say, including him in an IVA would not necessarily help as it would take a long time to receive a substantial payment through the IVA, which will not immediately help him get on the property ladder.
As has been suggested earlier in this thread, one possible solution would be “if you have additional income, you can use the 10% benchmark and your share of the 50% to do what you like with - including repaying your son”.
Hi, my name is Nick Payne and I am an Insolvency Practitioner with Payplan.
Read the Payplan blogs by visiting our website www.payplan.com
This doesn't help at all. As previously advised we are lucky to still be in jobs - having just gone through redundancies at work so there is no possibility of additional income - salaries have been frozen at work as it is.
My son was trying to help me to save my business - and would never have dreamt of asking for a contract to be drawn up. He put all of this on his credit cards at the time and has since paid it all of from his own money.
To be honest Toby it's irrelivant that you didn't have a contract at the start, if you'd been told a contract was needed to add him I'm sure you could have worked that one out between you.
Hi Tobymoz - this does seem to be a tricky one as there's no way of paying back so much money quickly. I'm not sure this is a good idea myself but in the interest of putting all options on the table (and probably disregarding this one)...could your son borrow the money and you make the monthly payments from savings in your allowances and by taking a second job? Then once the iva is over you should be able to afford the loan easily. It means paying back more than he lent you, but it would be the quickest way for him to get his hands on the money. As i said tho..not great advice but a last resort perhaps. x
Hi - and thanks so much for your replies - its lovely to think that others out there are racking their brains to try and help me!
The problem has now arisen because he needs the money back towards a deposit to buy a house, and if he takes out a loan - even if I repay it, it then this will reduces his borrowing limit - chicken and egg really!
He isn't pushing me for it as he knows we just haven't got it - he just asked if there was any possibility of giving it back to him towards the deposit they have got so far - you know what its like - they need to have a hefty deposit to even be considered and £13,000 is a huge amount.
We are very lucky to have such a kind son - he really went out of his way to lend me the money to try and save my business and I just feel so bad about it all now that he needs it back.
I know that if I tell him it just isn't possible he won't hold it against us as he knows he will get it back one day!!
I do feel that I was not given good advice in respect of this - at the time I was too traumatised about losing my business and my business partner going bankrupt and leaving me with all the debts to think straight, and it's only now that I have got to deal with it.
There is a possibility that my mum may be able to give him £5,000 towards it - fingers crossed, which would be a great help and my husband and I are racking our brains to work out how we can earn some extra money - difficult when we already work full-time long hours - but I'm sure there must be something else we can do! Any ideas very welcome!!
Thanks so much for your replies - I really do appreciate it.
I find it fascinating to compare the experiences of other IPs to my own firm. Nick - we must hook up for a coffee at some stage and swap notes. Clearly you are seeing and experiencing things a lot differently from me, and I simply don't understand why this is - suffice to say that I am glad that we do not get the sort of flak that you appear to be getting from creditors.
One would assume that you guys would be getting an easier ride rather than the other way round!
Thanks Melanie - I find it all very strange - I would have thought the rules were the same for everyone regardless of which company they are represented by but clearly this is not the case as some on the site have said you can and have, included family debts, but Payplan are saying it's not allowed.
British Law, being what it is, and how it's arrived at, is often down to interpretation .. and, as we know, different people will interpret things differently!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
[8D]Small outlay, large return: Go to charity shops buy old things, then boot sales, by old things again and sell them on ebay, it is a very good way of making extra cash in your spare time, and who knows you may be the next ebay millionaire, also top tip sell internationally and have a paypal account, costs, nothing really to start this little earner. I hope this info helps you out.
tobymoz wrote:
Hi - and thanks so much for your replies - its lovely to think that others out there are racking their brains to try and help me!
The problem has now arisen because he needs the money back towards a deposit to buy a house, and if he takes out a loan - even if I repay it, it then this will reduces his borrowing limit - chicken and egg really!
He isn't pushing me for it as he knows we just haven't got it - he just asked if there was any possibility of giving it back to him towards the deposit they have got so far - you know what its like - they need to have a hefty deposit to even be considered and £13,000 is a huge amount.
We are very lucky to have such a kind son - he really went out of his way to lend me the money to try and save my business and I just feel so bad about it all now that he needs it back.
I know that if I tell him it just isn't possible he won't hold it against us as he knows he will get it back one day!!
I do feel that I was not given good advice in respect of this - at the time I was too traumatised about losing my business and my business partner going bankrupt and leaving me with all the debts to think straight, and it's only now that I have got to deal with it.
There is a possibility that my mum may be able to give him £5,000 towards it - fingers crossed, which would be a great help and my husband and I are racking our brains to work out how we can earn some extra money - difficult when we already work full-time long hours - but I'm sure there must be something else we can do! Any ideas very welcome!!
Thanks so much for your replies - I really do appreciate it.
Last edited by Ash4 on Thu Jul 28, 2011 7:30 pm, edited 1 time in total.
If you do that Ash it would be classed as a business and Ebay would pick up on it as you are only allowed so many transactions a month as a private seller.
If it becomes a business then it would have to be declared to your IP.
Of course it helps in the first place if you have the money to be able to spend in charity shops and car boot sales!!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
