Hi, I have a guarantor loan, which I no longer can Pay. My guarantor as started an IVA and included the loan. The problem I have got is the loan company are chasing me for the money, saying I'm liable abs need to come to don't sort of arrangement. I know they won't get all the money via the IVA but if i paid they would end up with more.
If you pay the debt you will become a creditor in the IVA. You should have received notification of the IVA and a copy of the proposal so register your claim with the IP. If this is causing severe problems you may need to get some advice yourself.
Creditors should never get more in total, but under the terms of the guarantor loan they can pursue both parties so as to be able to recoup as much as possible of what is owed.
In the first instance you should contact the loan company and try to make some arrangement with them and if that does not prove fruitful, as Michael suggests you should speak to an advisor yourself asap
Steve Rees - A spokesperson for IVA.co.uk and Director at Vincent Bond & Co.
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