I have a loan with a guarantor

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catherine666

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Post by catherine666 » Thu Feb 20, 2020 9:01 pm
I have a loan with a guarantor. Can I exclude that from an IVA?

WallE

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Post by WallE » Thu Feb 20, 2020 10:42 pm
No, it's an unsecured debt that will be bound by the IVA, it's highly unlikely you could choose to exclude it. If you enter the IVA your guarantor will be most likely expected to commence servicing the loan as you'll have defaulted by entering into the IVA. As a joint and several liability the creditor may choose to claim in the IVA and receive payments from the third party, or not claim in the IVA and rely solely on the guarantor servicing the loan.

You can't treat the loan favourably and pay it outside the the arrangement and you wouldn't be given an allowance in your I&E to do so.

If it's Amigo you're referring to, there's a clause in their T's and C's which will allow them to terminate if you enter into an IVA at which point they will most likely enforce against the third party and demand full payment immediately.

Tread carefully.

Foggy

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Post by Foggy » Fri Feb 21, 2020 9:12 am
As said above, if you go into an IVA it will be included and the lender will turn to the guarantor for payment.

A possible route is to try to get the guarantor released from the loan first - by the borrower winning an affordability complaint. Then the borrower can go for an IVA , or any other debt solution.

Have a look here for useful information: https://debtcamel.co.uk/guarantor-loans ... ankruptcy/
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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