Can I take out a guarantor loan to clear my IVA?

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Rlh1994

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Post by Rlh1994 » Sun May 12, 2019 5:14 pm
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?

Foggy

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Post by Foggy » Sun May 12, 2019 6:13 pm
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

Foggy

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Post by Foggy » Sun May 12, 2019 6:15 pm
Have to add that I am shocked that you were advised an IVA was the best solution for such a small debt, however, there may have been good reason at the time.

Might I ask what your repayments are ?
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

Rlh1994

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Joined: Wed Jun 20, 2018 7:33 pm

Post by Rlh1994 » Sun May 12, 2019 10:49 pm
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.

Rlh1994

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Joined: Wed Jun 20, 2018 7:33 pm

Post by Rlh1994 » Sun May 12, 2019 10:50 pm
When I say double, I don't mean double the monthly amount, I mean double the original debt :(

Rlh1994

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Post by Rlh1994 » Sun May 12, 2019 11:16 pm
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!

Lisa Thomas

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Post by Lisa Thomas » Mon May 13, 2019 9:14 am
Best to put forward a F&F offer with your sisters money instead to settle the IVA early.

see my short video here for a little more detail:

https://youtu.be/h4dozq9aGak
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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