What qualifies as debt for an IVA? Outside of my mortgage, I have been left with a secured loan following my marriage seperation, 3 credit cards and a personal loan
IVA debts are all unsecured debts such as credit cards, store cards, personal loans and overdrafts. In addition, debts that can be included are income tax, VAT, PAYE, tax credits, trade creditors, council tax, utilities, shortfalls from repossessed properties and others.
The main debts that cannot be included in an IVA are secured debts such as mortgage and car HP agreements, fines, some student loans and arrears of CSA and child maintenance.
Speak to a couple of IPs who can clarify what debts are proveable if you have any doubts.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi Michael
Can you clarify the "some student loans" quote.
I an sure that Melanie stated a short while ago that all student loans have to be included within an IVA proposal unless it has been agreed with other creditors that they will stand outside
Regards
All student loans can be included in an IVA - however Student Loans will normally vote against the IVA if they have sufficient voting power. This is when it is necessary to obtain the agreement of the other creditors to let them stand outside the IVA.
Watch this space however, I understand that parliament is about to pass new legislation to specifically exclude student loan debts from IVAs.
Kind regards, Elizabeth Pywowarczuk, Insolvency Practitioner.
If you would like me to advise you about an IVA and if appropriate propose one for you, please visit my website at www.liberta.uk.com
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
To be honest we have had different legal advice over the years but currently we do operate a policy of student loans not being included. Previously, we were advised that pre 1997 loans could be included as could those taken out between 2004 and 2008. The rest were excluded. As Elizabeth says they started to vote against anyway although prior to about 2004-5 they used to vote in favour with no mods.
Bit of a mess really but if they cannot be included at all now it will clear up the confusion. I am glad that the bulk of my clients are self employed and studied trades rather than going to university!
Can't understand Michael why you have had different legal advice. At the moment they are a debt just like any other.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Student loans have changed over the years and are not claimable in bankruptcy since 2004. Even those taken out before this date may or may not be claimable depending on which type of loan was given. Income based loans are repayable once HMRC notifies the Student Loan company that the income threshold for repayment has been reached. We have been advised that these types of loans are not claimable but previous loans taken out may be claimable. It all seems confusing and I will be happy when there is total clarity.
I am curious how all the other IP firms treat student loans.
I have to agree with David and Elizabeth on this point. Michael - I am happy to chat through my own experiences in this area with you. Give me a call when you have a moment.
