My debt got out of control this year (although it was always really bad) and I had to lend money off friends and family to cover Christmas.
My self, partner and 3 children had no money to live off in January to survive off so got a few pay day loans(loans of £150, £200, £300, 3 seperate companies).
The shortfall of a house recently caught up with me a week or 2 ago to which I owe close to £50k so opted for an IVA (creditors meeting in 4 weeks time).
My question is even though I have included these payday loans in my IVA will they still be bound to the terms if other creditors agree? As I never paid the interest on these loans even once and only got them in January.
I know it looks bad but I honestly never meant to screw these companies over at the time of getting the loans and I have a terrible feeling that it may look like this when it comes to the creditors meeting. Will anything come of this during the meeting?
Hi Michael , I wouldn't let this bother you , the vote is based on the creditor with the highest debt in the vote , if you have a loan with Barclays for example of 15k , as long as they said yes your fine , I think 75% of the companies have to say yes , one of the experts might elaborate for you .
Hi, yes, it's 75% by value, so the little loans won't make a voting dent (but could still swing it if voting is close. However they vote ( even if they don't vote) if the IVA is accepted they will be bound.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hopefully I can give a bit of reassurance I had my creditors meeting last week and my IVA was approved I had some payday loans, and a few of them didn't even vote.
If you have some big creditors and they vote yes, I would assume you would be fine.
