Repayment of family debt

[Debt Monkey]

Hi there,

Just a quickie. When I entered into my IVA I owed my family a lot of money but they were kind enough to let me wait until my IVA was over before I need to consider paying them back. My question is this. At my annual review I had just received a £400 a month pay rise, lucky me I know. As part of my IVA I had to increase my contrubution by £200 (50% rule) which was fine. Can I now set up a standing order to start repaying my family up to £200 per month, maybe a little less or will this be seen as unfair to my creditors? I could always just give them some cash I suppose each month but I prefer to do it by bank to avoid the demons of spending what is in my wallet lol.

Many thanks

Dm

[MelanieGiles]

Technically you can do what you like with your share of the salary increase, but technically your family members should have been included in the IVA - and I wonder why they were left out.

Probably better running this one by your own IP to be sure, but it doesn't look if they could stop you.

[AlanO]

Hi Debt Monkey,

As Melanie says Family should really have been included - could have influenced the voting but also would have diluted the creditors distribution.

As Family not included in the first place a practical approach could be to gift to relatives your element of pay rise. If you are formally paying back Family creditors then could be an issue with your IP if they are to recieve a higher return the the IVA creditors

Sometimes best to let matters rest

All the best Alan