www.iva.co.uk

Thanks to all for your help with my previous questions!

When my son was 17 finances were much better for me and much worse for him, so I took a bank loan in my name for him to buy a car.

He has been paying me weekly and I have been paying the loan. I'm now about to apply for an IVA. The loan now stands at £1800 and will be repaid in Feb 2010.

We have 2 options:
1. We can include it in IVA and he just carries on paying me. Advantage I can see is that its a relatively small debt and potentially another yes vote, although I am also running a £2,000 overdraft with the same bank. Disadvantage it will be a potential debt for 5 years not 16 months.

or
2. He can now take a loan in his own name and we can wipe it out before IVA. That will mean my total debt in IVA will be a bit smaller.

What do you all think would be the best approach?

Thanks again.

Hi Robert
You would need to include this within the IVA as it is in your name. If this was paid off prior to the IVA it could look like preference to one creditor.

Pixie is right - and the money owed to you by your son needs to be shown as a debtor - ie it is an asset - in your statement of affairs, and the money included as income until the debt has been repaid.

Thank-you for your replies. Looks like I almost made an innocent mistake there!

Good job I found this place, hopefully things will get better and I'll then be able to reciprocate.