DMP to IVA but recent Credit Union loan

Get expert opinion. This is the place for new questions to be posted.
5 posts Page 1 of 1
User avatar
gary287
Posts: 2
by gary287 » Thu Dec 06, 2018 6:29 pm
currently in dmp for last 10 years.
looking to move out of it to an iva as in current dmp would take 50 years and I'm 44 now.
however the real question i have is with my current employer for 3 years and have a 5 k loan with a credit union...increased from 1k over the last year ..attached to my earnings every week. As this is a recent loan under a year old is it unwise to attempt to have it disclosed added into a potential IVA.
I'm assuming the surplus £25 weekly credit union repayment I make if added to an iva would just be shared out amongst all 12 creditors.
However this would be pointless unless I can have the £25 back in my weekly budget instead where its needed as what's the point of messing up my only line of credit worthiness. .ie. ..never missed payments and built up a worthiness over 2 years with them.
Any advise appreciated
User avatar
Foggy
Forum Expert
Posts: 27459
Contact
by Foggy » Thu Dec 06, 2018 6:59 pm
You HAVE to include all unsecured credit in an IVA -- you cannot leave the credit union out. When in an IVA you are supposed to be cut off from all lines of credit ! An IVA is a formal debt solution and your credit score will be shot beyond all use for the next 6 years.
User avatar
gary287
Posts: 2
by gary287 » Thu Dec 06, 2018 7:27 pm
Foggy wrote:
You HAVE to include all unsecured credit in an IVA -- you cannot leave the credit union out. When in an IVA you are supposed to be cut off from all lines of credit ! An IVA is a formal debt solution and your credit score will be shot beyond all use for the next 6 years.



I understand.
I worry as I have taken these lines of credit whilst being in a DMP but I guess that's not as formal as an IVA.
So having an IVA you think the provider would insist on declaring the credit union loan to the creditors but they said they don't have to as not on my DMP?
User avatar
kallis3
Forum Expert
Posts: 73786
Contact
by kallis3 » Thu Dec 06, 2018 8:28 pm
As Foggy says - ALL unsecured debts have to be included in an IVA.
User avatar
Foggy
Forum Expert
Posts: 27459
Contact
by Foggy » Fri Dec 07, 2018 7:42 am
Who has said that you don't need to include the credit union as they are not in the DMP ?
5 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 32 guests