Implications of lending friend money to clear IVA

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s

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Post by s » Tue Nov 06, 2018 9:47 pm
Hi
I am thinking of lending my friend an amount so he can clear his IVA

Are there any financial implications to my credit rating as a result of doing this ? Or any other implications other than giving someone money

Foggy

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Post by Foggy » Wed Nov 07, 2018 7:55 am
Not really --- the IP will need to see your bank statement showing the money is there and will need some ID from you. The money needs to go direct fom you to the IP, not into the friend's account. You will not be linked financially.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 9:59 am
There's no reason this should affect your own credit file, it won't even show.
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kallis3

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Post by kallis3 » Wed Nov 07, 2018 10:33 am
Your money is just to show what you are doing and if you do pay, it has to come from your account directly to the IP.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Lisa Thomas

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Post by Lisa Thomas » Wed Nov 07, 2018 10:56 am
Often these types of arrangements need to be 'gifts' not loans so bear in mind that although your friend might agree to pay you back at a future date once the dust has settled you might not have a legal recourse to pursue them if things turn sour.
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

Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 11:03 am
Lisa why would it need to be a gift not a loan? Surely the creditors won't be concerned?
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to http://clients.theselectpartnership.co.uk/

Foggy

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Post by Foggy » Wed Nov 07, 2018 11:10 am
Shaun -- while still in the IVA loans are not allowed (except, interestingly, early exit loans !! ). You could be deemed to breach the IVA in order to close it early ! Also some creditors will refuse to accept a loaned lump sum on principle.

If you chose to repay your donor after the IVA that is your business -- but, while you are in it ... you are in it !!
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

Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 11:15 am
Am I misunderstanding something? As I understand the thread, the loan IS to be an early exit loan, the exception theory with these being that the loan isn't officially made until the IVA is settled (at least simultaneously).
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to http://clients.theselectpartnership.co.uk/

Foggy

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Post by Foggy » Wed Nov 07, 2018 11:51 am
Shaun Vickery wrote:
Am I misunderstanding something? As I understand the thread, the loan IS to be an early exit loan, the exception theory with these being that the loan isn't officially made until the IVA is settled (at least simultaneously).
For various reasons, commercial early exit loans are viewed differently and are often cloaked in equity release situations. Although, as I say, even those are sometimes rejected by some creditors on principle.
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

Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 11:55 am
I'll have to take your word for it Foggy but I can honestly say that in our experience we've never seen a creditor reject a proposal because the F&F is being provided from a loan or re-mortgage.
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to http://clients.theselectpartnership.co.uk/

Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 11:59 am
There, and I've uploaded a new avatar too....thought it best to have one that was at least taken in the last century!
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to http://clients.theselectpartnership.co.uk/

kallis3

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Post by kallis3 » Wed Nov 07, 2018 12:06 pm
:D
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Nov 07, 2018 12:41 pm
Shaun Vickery wrote:
There, and I've uploaded a new avatar too....thought it best to have one that was at least taken in the last century!

Been a hard few years, has it, Shaun :shock: :lol:
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

Shaun Vickery

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Post by Shaun Vickery » Wed Nov 07, 2018 12:45 pm
It was a very old photo! 8)
Highly Commended at the British Mortgage Awards. For individual mortgage advice go to http://clients.theselectpartnership.co.uk/
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