Hi Hazel. On the face of it your mum would be treated like any other creditor and receive dividends of pence in the pound, probably on a quarterly basis.
How much are we talking about here?
There are ways and means. If your mum agrees to hold off the debt repayments until after the IVA is complete, your IP might agree to exclude the loan, being an informal family arrangement. However, this would still leave the question of the repayments in the meantime.
You would not be allowed to offset these in your allowable expenses, but would have to fund them from your agreed allowances.... which might make an IVA unworkable, if you can't afford to eat.
I suggest you pop over to
www.iva.com and have a word with a few companies there. It's free and without obligation. You can at least work out some figures to find a viable way forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014