Settlement Loan question

[speedy]

Hi,

I am 3 years in to my IVA and due to a change in myself and my wife jobs we are now earning a lot more which has just resulted in our monthly payments to increase. As time goes on this year my wifes wage is due to increase again. So the question is whether we would be able to get a loan to settle the IVA? I know that loan s are not allowed normally, but would we be able to get one to actually finish it?

[zim zim]

Hi, i don't think you will be able to take out a loan agreement whilst in an iva. Also (if you don't mind me saying) why take out a loan for x amount of years + interest when surely you are far better off seeing the iva through to it satisfactory conclusion.

Regards zim zim

[kallis3]

Are you both in an IVA? If so, then you cannot take out any credit without the permission of the creditors.

If your wife is not in an IVA then she could possibly do this, but you would need to have a good reason to offer a full and final, such as struggling with your payments, which it seems that you are not.

Why not pay more money across each month? That way you may be able to return 100p in the pound to your creditors and you may be able to finish early if you can do so.

I do agree with zim zim that I would let it run to it's conclusion now.

[MelanieGiles]

The only way you could do this would be to borrow money off friends and family on informal terms. Whilst it woudl be permissible to borrow to repay the IVA, it is unlikely that any commercial bank would provide funds to you whilst you are in IVAs.

Why not just let the IVAs run their course and pay as much back as you can?

[MRBLUESKY]

hi speedy welcome to the forum,the most common way to conclude your iva early is with a lump sum from a third party,which you could pay back out of your disposable income if accepted,your ip and creditors would want to no where the sum is coming from name ,address,relationship if any ie brother ,sister,parent, to you etc.if you did manage to get a bank loan [and its a big if]then i think you would be on a sticky wicket getting your ip to propose never mind getting it accepted.glad to hear things are on the up regarding your salaries and good luck for the future.

[kallis3]

What difference does it make what relationship they are to you?

I can accept that they want to know where the money is coming from, but it shouldn't make any difference whether it is a friend or a family member.

[MelanieGiles]

It makes no difference Jan, but the IP will need to advice creditors of the source of the money in their variation report.

[MRBLUESKY]

just updated my thread jan to make it more clear,like melanie says its just to clarify the source of the money in the variation report.

[kallis3]

I appreciate that they creditors will want to know the source of the money, but just didn't think it would make any difference whether it was a friend or relative.

Thanks Mel.

[speedy]

Thank you everyone for the very useful information. I thought that the loan idea might be a non-starter. We will just continue as we are now. One other thing that we have just had in our annual review was that we pay nursery fees and that was under question. But without nursery we would be an entire wage less as my wife would have to give up work, which would mean that we definately couldn't make ends meet. How can this be questioned, as it cetainly isn't a luxury.