If i borrow funds from a friend to do a lump sum iva, is it worth them putting a charge on my property so that i am in the same financial situation for the purposes of my creditors? And how does one go about doing this? Thanks for all your help.
Hey robbo201, if you can lend the money from a friend and you do a lump sum IVA then I presume that you have to repay your friend. How you both come to an agreement is up to you but I wouldn't have thought you would need to do that. You creditors will be gone. Does your friend want some security?
I was only thinking of putting the charge on the property so that the creditors wouldnt exoect me to release equity still left. My property is worth £150000, mortgage o/s £118000. I can get a secured loan or re mortgage but only up to about £130000, which is just over 85%. But if i take the loan from a friend instead, will they still take into account the equity, which wouldnt be there if i had taken out a secured loan.
Hi
I don't think that it will make any difference to your creditors,they will be voting to accept the lump sum now instead of a possible equity release later.
For your own and/or friends piece of mind you may want to secure your friends loan and a Solicitor will be able to do the required legal work.
Regards
