www.iva.co.uk

Would I be in breach of my IVA if I pay £300.00 which I borrowed from my brother before the IVA was put in place. Am I able to take the money out in cash or transfer the money?

Hi, and welcome to the forum.

You should not prefer one creditor over another, however I take it that your brother was not included in the IVA.

Where are you going to find the money from?

No my brother wasnt because I needed to borrow some money to tide me over till the meeting of creditors which has now happened

Thankfully I didnt use all of the money and I will get a bit more in my April wages (not enough to go above 10% though)

The money is shown going into my account and I want to just transfer it back to him on Weds

I will be paying him back with money I already had saved up plus a tiny bit out of my wages

Its a one off situation

Personally, I would say that if you have the money, go ahead.

One less thing to worry about.

Hi
I agree with Jan, that money is yours to do as you wish and as he wasn't a creditor in your IVA you are not peferring him by paying him back.
Regards

Well you are actually - because the creditor should have been included into your IVA, but as the amount is relatively immaterial then I can't see any real harm done.

ok thanks for the advice

He wasnt included on my IVA because I borrowed the money after the IVA had been sent to the creditors and before I had a date confirmed for the meeting of creditors.

I knew that it was a very short term loan and didnt expect the meeting of creditors to get convened as fast as it was - before my next wages

Ok here is another one for you

One reason I am in the mess I am in is because of a builder running off with about £7500. Although I took out secured loan and remortgage to pay for my flat to be done up the funds actually came out of one the accounts that is covered by the IVA. For this reason I accept that I am not entitled to this money now and it is for the creditors.

I want to get this builder taken to court however I do not have the money to pay the court costs which are a minimum of £230. If I win the case, which is likely as I have a lot of evidence against the builder then the creditors will get about £5500 back, I dont think I can sue him for the full amount cos I dont want to get solicitors involved.

What do you think the chances are of my IP providing payment direct to the court for me to pursue the builder, or of the builder being pursued by my creditors?

I havent been allocated a supervisor yet

Paul

Hi Paul
I think it is unlikely that your IP will support making a direct payment to the court,even though your creditors will benefit if successful.
I think borrowing small amounts off family members is part and parcel of getting through an IVA and can understand why you had to. Paying them back given the fact that the money was loaned after the proposal went to your creditors and is such a nominal amount will not cause any problems.
What would we do without family support ?
Regards

Exactly Andy! If you can manage to pay him back without it affecting your IVA, then I would do so.

Hi Paul
Do you have home insurance? May be worth checking because if you have legal expenses cover they can look into pursuing the builder for you.

Good idea I dont mind going after the builder to get the money for creditors but obviously I need to avoid using my very limited money for the fees.

I have just changed home insurance providers which may complicate things slightly but could look at it

Not sure what you mean when you say that you have not been allocated a Supervisor - surely it is your choice to decide which IP firm to appoint?

With regard to the claim against the builder, if I were acting for you I would be happy to recommend that creditors support the Court fees if you demonstrated that there was a sound case - and importantly that the builder had the money to repay you if you won your case. Creditor approval for ongoing action will be essential, but if the case is sound then there is a relatively substantial asset here to chase.

I rather got the impression he was already in an IVA?

Could be wrong though.

I am in the IVA but I have not been allocated a supervisor yet

What company are you with Paul?