www.iva.co.uk

Hi, i was just wondering if it is possible to be a gaurantor for somebody while being in an IVA. The Gaurantor has there own house with equity in the property but i was just wondering if that would be possible. I myself have just come out of an IVA but looking at getting back on the property ladder. if anyone can offer any advice at all it would be greatly appreciated.

Thanks

Hi. I would think that someone in an IVA cannot be a guarantor, as the debt you are guaranteeing becomes a contingent debt of yours, and you cannot take on unsecured debt whilst in an IVA.

My daughter needs a guarantor for her tenancy when she leaves halls and we're having to ask Nan to do it (well hubby will).

Same here lesley, our youngest had us down as guarantor in his first year, then we got the IVA and had to get my sister to do it instead.

You can act as a guarantor whilst you are in an IVA, but you will need to seek your IP's permission to do thi, and a credit check may indicate to the provider of the credit that the guaratee is worthless in any case.

What happens if the person taking the loan fails to pay it then? How would the guarantor fund the payments they have guarenteed? I assume thats what you mean Mel about a worthless guarantee?

Paul

Yes - risky for anyone relying on someone paying a guarantee, whose disposble income is pledged to an IVA.

My dad did mine for my son who is moving out of halls this year.

Danny and Hyperdrive, did you explain why you couldn't do this to the guarantors? I'm at the stage where my IVA has actually finished but still awaiting completion certificate and to reach the 6 year stage whereby it will come off the credit file. I don't want to tell MIL why but hoping hubby can just persuade her to do it.

The letting agents sent out very detailed guidance notes on qualifying as a Guarantor which explicitly mentioned IVAs, so there was no point in discussions. Experience with them proved they were thorough in chasing up employers and credit references. In the end they accepted my eldest sister who is retired but was able to provide proof of her pension.

Thank you for replying to my my badly worded post above.

What I wondered was did you explain to your sister why you couldn't be a guarantor or did you have another explanation?

I'm struggling with a reason as to why I couldn't do it and I don't want to tell her the truth.

Ok, hmm. In our case we told my sister of the IVA but none of my others. She already knew of the IVA because a couple of months ago I approached her about the F&F.
I understand your dilemma. We didn`t even want to ask her again but in the end, who do you turn to?.
I had tried to get my other son - who I have made a partner in the business - but sure enough they contacted the accountant who must have said his earnings couldn`t be predicted at the level they demanded, and rejected it.
Anyway when I got round to speaking to the agents after persuading my sister to pay the yearly rent upfront, with my son at Uni agreeing to give her it monthly - because being retired I thought from their guidance she wasn`t fit to be a Guarantor - they turned round and said she could be a Guarantor instead as long as she could prove funds like her pension or deposits!.
Crucially though the agent also said that my son paying a bigger deposit would have been acceptable to the landlord all along.No need for a Guarantor. And since student loans are paid in big chunks then it wasn`t really a problem doh [:o)]
But I guess like me you don`t want to tell someone why you`re not fit to be a Guarantor.
And I still haven`t.

The bigger deposit without a guarantor might be an option for them (she's moving in with her boyfriend).
Thank you so much, hubby will try and explain to MIL in simplistic terms when she's having a moment of clarity as that is not always. Thank you for your help.

Glad it was useful[:)]