Hello,
I started an iva process on Friday, all docs signed etc I am now just in the 2 week notice period for the creditors before I get a date of the meeting.
I applied for a loan on Wednesday , did not hear anything then started the iva on Friday. Today, I was told my loan was approved and the funds sent to my bank.
How does this affect me? I’ve been told to contact the company and give the loan back which I will do once they open tomorrow and I can speak to someone. But I’m really worried that this is going to affect my iva being approved.. what if they don’t accept the loan being returned what do I do then? Any thoughts please ??
Was this loan large enough to cover the debts in consolidation ? Will the repayments be manageable compared to the IVA payment ? Depending on the answers you could take one or the other .... not both !
Depending on the terms and conditions of the loan, you should have a right to cancel in the early days and return the funds with no comeback ... hopefully it isn't from a sub prime lender (who tend to be awkward to deal with).
I would have a chat with the IVA provider so that they are armed and ready for anything this new lender might throw at them .... but, if you cancel the loan and return the funds, they will have no say ( as I say --- check the terms and conditions for cancellation rights).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I started and iva process on Friday , i am waiting for the creditors meeting.
I applied for a loan before I started the iva and didn’t hear from the company . Today they sent me the funds and said it had been approved. I obviously still want to go with the iva and return the funds to the loan company. However Im worried this will affect my iva approval of the company do not accept the loan back... any thoughts on what I can do?!!
Debt is around £8500
Iva is £106 over 5 year
Loan is £1000
OK -- so the loan will not replace the need for an IVA by consolidating the debts. So, as I say, check the cancellation conditions on the loan. Hopefully they will allow for the loan to be cancelled nd funds returned in the early days.
All that apart -- are you sure that an IVA is the way you wish to go ? Have you examined the other options? --- your proposed provider should go through these with you.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
as foggy asks is the iva the right option for you ?
On a relatively low level of debt would other options like debt management plan or debt relief order not be more beneficial - now is the time to pause and make a wise decision having explored all options.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Sorry my total debt is £9500
Spread over roughly 10 creditors
I have started the iva process and just received a date for my meeting.
I was only asking if I should expect any issues because of this loan that was sent . I am contacting them to return it today.
Just hope it doesn’t affect my iva...
Would it ?
How would it ?
Yes I’ve explored other options it was this or a dmp . However I opted for This as a it would be cheaper than a dmp.
Your creditors could get wind of it and decide that they will vote against it.. If so you can revert to the DMP. I'm curious to know how that is going to be cheaper than an IVA.
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
I said the iva would be cheaper that’s why I chose it.
So if my iva failed I would be able to look into dmp instead ? Obviously it would cost me more which isn’t ideal but would have to do something and obviously want to avoid bankruptcy at all cost
You can drop back to a DMP but remember that creditors do not have to freeze interest and you will be paying back the whole amount rather than a portion so it may take longer. I assume your payments under an IVA are less than those in a DMP? Don't forget that your credit rating will be shot for six years.
May I ask why you don't want bankruptcy? Do you have a house to protect? Will it affect your job?
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
