will it still be possible for me to get an IVA.

[stevep]

I have debts of about £40,000,these are unsecured, I have also borrowed money from my brother and father totaling about £28,000, I have had to sell my house and I have used the money I made from the sale to pay of my brother and father will it still be possible for me to get an IVA.
Regards Steve

[MelanieGiles]

Hi stevep and welcome to the forum

You have effectively preferred your brother and father over your other debts, and under insolvency law this is not permitted. If you were to be made bankrupt, the Trustee would have the ability to recover those monies from your brother and father, and distribute them evenly across all creditors.

How much was your house sold for and what equity was released? If you are able to recover the monies paid to your relatives, then an IVA may be possible, without this then I think your case is doubtful.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[stevep]

Hi
I sold the house for £140,000 and released £30,000. Is there any other route that I can take with out having to recover the monies from my relatives.

Regards Steve

[MelanieGiles]

You could try a DMP - but make sure that you tell the company about this preference so that they can decide whether to accept you as a client.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[stevep]

Can you let me know what a DMP is please?

Regards Steve

[MelanieGiles]

DMP stands for Debt Management Plan. This is an arrangement you make with each individual creditor to pay them a proportion of your available monthly disposable income, which is lower than the contractual payment due. Creditors have to agree to your offer, and you carry on making the payment until the debts have been paid in full. During the period the DMP is in force, creditors are permitted to continue charging you interest and they may also take legal action against you, although I believe in reality this generally does not occur.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk