Im new here and as everyone who starts off the IVA process my mind is blown and Im not too good with finances. I'll spare everyone the reasons for the IVA and just get to my question.
If anyone could shed some light that would be most appreciated as I cant sleep with the worry. IVA amount is 25k and I am self employed sole trader.
I own a small business, a coffee shop, 3 years ago my father lent me some start up money 50k. It was to be paid back on sale of the shop. Super kind I know.
Long story short I am three years later in an IVA and am awaiting my creditors meeting result in two weeks.
My question is: If i sell the business can I give my dad his money back and not to the IVA. I didn't disclose the loan from my father with my IP as I was thinking when I sell the business which is going to be less
than the 50k anyways can I just give every sale penny back to my father and continue with my IVA payments. Of course the IP would see the sale transfer in my annual bank account meeting etc so he would know Im not holding any money back.
I am worried that if I sell after the IVA is approved that he will loose his money as it will go back to the IVA first?
Anyways many thanks for any replies ladies and gents it is much appreciated,
My understanding is that unfortunately the money would go into the IVA pot. Your IP would understandably be very annoyed if they found out that you got thousands of £££ and gave it to a family member. I'm sure someone with more knowledge will give you a better answer
If you sell before the IVA has completed the money is due to be paid to your creditors up to the amount of full debt, plus fees and possible statutory interest, what is left will be yours to do with as you wish. Paying back your father would be seen as favouring one creditor (albeit an undisclosed one) over another and would see the IVA fail.
You are already starting this IVA on thin ice by not being honest about your situation --- it does not bode well.
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
I agree with Foggy. I appreciate that the family relationship makes things a little awkward but ultimately he is a creditor the same as the rest. 'Favouring' him by settling his debt in any manner of unequal proportion to the others is likely to put you in a very precarious and exposed position.