Can I borrow money to pay off IVA?

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Mimo

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Joined: Fri Sep 10, 2021 4:05 pm

Post by Mimo » Sat Sep 11, 2021 2:16 pm
I’m about 27 months into my iva , currently paying £300 monthly . My original Debt was 36K.
I would like to repay my iva now and close it. My friend has offered to borrow me the money to pay it off. Can I do that?

Foggy

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Post by Foggy » Sat Sep 11, 2021 3:08 pm
You cannot 'borrow' the money for a full and final payment, but, if a friend were to 'gift' you the money, once the IVA was completed you would be free to pay this money back out of the goodness of your heart, if you so wished and your IP would be none the wiser.

When they are gifting the money they would need to make it clear that it was for the purposes of the full and final payment only and, if the offer was rejected, they would keep the money and it would not be available to you ( otherwise the IVA might want it anyway ! ).

The money would, if the offer was accepted by your creditors, have to pay the money direct to your IP, not to you to pass on. For money laundering regulations the IP would want to see confirmation of their I.D along with evidence that the money was actually available ( usually bank statements ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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