www.iva.co.uk

I was recently refused an IVA. All my creditors accepted apart from the Student Loans Company, which meant the proposal only had a 69% acceptance rate as opposed to the necessary 75%. My student loan is not a debt that really affects me as it just comes out of my wages as an extra tax...it was a large Post Graduate bank loan and overdraft plus some credit cards I wanted to clear but Debt Free Direct said all debt including Student Loans must be put into the IVA.

Is there a way around this or is my only option now bankruptcy? I have no assets. Thanks for your help.

Hi Amy

Im no expert, but, I have had this same problem, however my IVA company (Freeman Jones) didnt include Student Loans in my proposal, as apparently they wont accept anything below 75p/£, so ive got an IVA, and my income and expenditure is reflective of the student loan deduction, I believe the other way is to do a DMP for student loan, however the minimum is £90, or negotiating with Student Loans. However I think, you should do what I did, and ask for it to be included in your expenditure.

Speak to Freeman Jones, they are really good.

Hope that helps

Hi
Even in bankruptcy it will still stand.
I would wait until the SIVAs come into force later this year[?],then 0nly a 50.1%agreement will be needed.Your debts will need to be under 75k
Go into a DMP until this time
Finally if your debts increase during this time,due to interest and fees,then you may be in a position where the SLC hold less than 25% of your overall debt and you can try for a conventional IVA again
Regards

Hi Amy

What a pain for you ... my student debt WAS included in my IVA but it was only a very small proportion of the total debt. If your IP is able to do what sjbryon's was able to that would be great ... one of the exeperts will be around soon to advise more fully.

All the best ... and keep in touch with the Forum and let us know how you are getting on.

Debbie

Amy - I would represent the proposals based on the Student Loan debt continuing to be repaid outside the IVA. So long as this is fully disclosed to all creditors, this seems to be an acceptable way forward that I have done several times and received creditor agreement to.

Although the Student Loans company are technically being preferred, if this is with the full knowledge and agreement of other creditosr this poses little problem for you.

I asked the question right at the outset about whether I could include my student loan and was told it wasn't allowed! I now understand that they didn't include it because it would have meant my IVA proposal wouldn't have been accepted. I wish they had just explained that to me though at the outset instead of my having to find out on this site why it couldn't be part of my proposal. Ah well I guess it was for the best as my IVA was accepted and the creditors all know about the SLC.