I bit the bullet today and told my (wealthy) sister about our IVA, we took our last July for a 6.5k debt. She was beyond horrified we hadn't asked her to be a guarantor on a loan with lower interest, as I'm assuming our full debt would now be about doubled with IP fees and interest? Which we will likely be close to paying now by the end of iva due to higher income!
I was wondering if it were possible to apply for a guarantor loan, to use as a full and final? My sister seems to be ok with this, rather than just putting her name on something.
Or is that forbidden due to technically being applying for credit?
You can't apply for credit in your name without the IP's permission and most reputable lenders won't lend it either. There are some companies that do "Early Exit Loans", but these come at a cost and some creditors do not like them.
Could your sister not borrow the money in her own name as a 'gift' to you ? After the IVA has ended if you feel you wish to pay her back it would them be your private business.
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
The full debt was £6753.22, I thought it was odd that the company begged me to find another debt to make it higher, therefore added a water bill I had recieved only a matter of days before, which equalled around £150. Our repayments are only £100 a month, though due to significantly increase, meaning we will likely end up paying double that! If I had known our circumstances were going to change so significantly, I would've 100% gone for a DMP. This IVA is my biggest regret. It has caused more anxiety than the original debt. Hindsight is a wonderful thing as they say.
I also had problems convincing half of my creditors that I was actually in an IVA, due to them not having heard anything. It wasn't until I was moved from swift insolvencies to Aperture in the November (iva started July), and our supervisor resent paperwork to creditors due to the confusion, that they were all convinced! I only had one creditor vote in the MOC, and they were one of the smallest ones!