www.iva.co.uk

what if someone has a iva and then goes and get 6500 car loan in a parents name and pays them back? thats not fair to the creditors

Hi and welcome
Only my view but if the credit is in the parents name with their agreement ,then the car is technically theirs. The only thing is that if in an iva how could anyone afford to pay them back as the disposable should be going to the iva and listening to most on here then payments on a 6500 car would not be affordable.
At the end of the day if payments are not made the parents will be liable, the parents view is the most important as they will be the ones affected.
As for fair to the creditors probably not if the money could be going to them.

Ang

Hi
I agree wirg Ang,the problem is not the fact that the parents have taken the loan out for the car,it,s their decision,but the fact that how can someone afford to pay for a loan outside of an IVA ??
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Hi Lillyput,

Also take into account paying insurance and m.o.t plus petrol. I'm sure the IP is going to wonder how the extra money is coming from

The long and winding road will straighten out eventually....keep the faith

Hi Lillyput

I'm not quite sure I understand your question? I have had several clients who have needed to replace their cars during an IVA and have been unable to get credit - which they could have afforded within the IVA budget. In order to assist, I have given permission for another family member to take out the loan and for my client to repay them by instalments. I cannot see anything wrong with this - as common sense prevails when most people need cars to get to and from work.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi
If the IP is aware and the repayments do not affect the IVA contribution then thats fair enough.I think we asumed that it was to happen outside of the IVA without the IPs knowledge.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

Yes Andy thats what I thought too.

Ang