I am just in the process of applying for an IVA. I initially forgot to mention my student loan when giving details of my debts because I never really class it as a debt, as so many other places ignore it. However, I spoke to my person who will be drawing up my proposal today, and she said I will need to include my student loan as well. At first I was very happy with this, as it would mean my student loan would also be clear in 5 years. But then I searched online and found that the student loan company are unlikely to vote for an IVA unless they get a very high return (as I would still have to pay them if I was declared bankrupt). I'm not sure whether to try and include my student loan and risk them turning me down (it makes up just over 35% of my total debt), or ask my advisor to exclude it from my proposal, explaining the situation to my other creditors.
Any advice? (I'm with Payplan by the way)
It may be possible to exclude the student loan, so long as this is clearly explained to the other creditors. If you are not yet paying the loan, due to your income being below the threshold, then your IP will need to consider the effects on the IVA if the loan does become payable during the term of the IVA.
This is not an ideal solution, but one that does work in practice, but as ever you should seek advice from your own IP in this regard.
I'm already paying about £100 a month towards my student loan, so this would then go towards my monthly payment if it was included. It would require my employer to be involved to some extent, as they take the student loan payments out of my salary to pass on at the end of the year. This doesn't bother me too much, but I don't know how complicated it would be! Do you know how likely the students loan company are to vote for an IVA or abstain?
What percentage of your total debt is the student loan?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
A senior moment [:(]. Unfortunately in an IVA then the SLC demand a high dividend - as presumably this organisation is owned by the government then this is a matter that will be discussed at the next Standing Committee meeting
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I seem to remember reading that Student loans require 90%+ dividend, as they are pretty much guaranteed 100% repayment + interest over someones lifetime if they reject the IVA.
around 35p to 50p - and unfortunately they ignore "affordability".
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I have been informed by the SLC that they will only accept dividends of over 90p in the £ David. Are you saying that you are experiencing acceptance at between 35p and 50p?
Yes I am - but they have insisted on this level in a particular case but the DI is not possible to support it! They are a nasty bunch who do not understand realty and I have take steps towards Ministerial level to get it sorted.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Perhaps they expect you to have a magic wand as well David!!
Creditors who demand a specific dividend without regard to the client's own circumstances make my blood boil. The word on the street that I have heard is that legislation is due to be changed to actually exclude the student loan from an IVA in the same manner it is under bankruptcy proceedings.
