large loan taken out by parents

[m.c]

Hi,

We consider an IVA as being potentially our only solution. However, we have a large loan (approx £35k remaining) which was taken out by parents as we were unable to obtain credit. We have evidence of the money being paid into our account at the time the loan was taken out and evidence of the monthly payments being made to our parents in return. Would this loan also enter into the CVA or not? Or would i have to somehow get the loan transferred across to us (if we pass credit scoring) or is this not legal?

[MelanieGiles]

Hi mc and welcome to the forum

If your parents have taken out a loan and given you the money, they remain liable to their lender and you are obviously creditors of them. You woul dhave to include your parent's loan into the IVA, and your parents would then have to maintain their own payments to the loan company. You could not at this stage have the loan transferred to you.