www.iva.co.uk

Hi

Can anyone tell me if student loans are counted in the calculations for IVAs or are they treated differently as they are taken directly from wages?

Thanks

Hi Terry

I might be wrong on this one but it is my understanding that they are not included as they are deducted from your salary.

The Gov't was placing legislation for them not to be included in bankruptcy or IVA's.

Income Contingent Student loans (which were used from c1997 onwards) can not be included in an IVA and would be payable outside of the IVA. Student Loans (old style) taken before this can be included in an IVA (but not bankruptcy) but are often kept out if they form a big percentage of the dent as Student Loans Company will sometimes demand a high dividend (up to 90p in the £). This is usually allowed by the IP and then in turn the creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Terry,

I have a Student Loan which I took out in 2000 and this WAS included in my IVA. My IP advised that if the student loan is above 25% of the total debt then it should not be included as the Student Loans Company normally vote No.

The advice about Student Loans is very confusing! I was originally told by a debt advisor that as I had a new style loan I could not include it but when I spoke to my IP she said I could include it! So i'm not sure how it works. I had my IVA accepted today and surprisingly the Student Loans Company did not vote!

Devonlass

Hi Terry

My student loan was not included in my IVA. I was told I couldn't include it because it was taken at source but I know you can include it and I wish I had!!