If I take out an Iva would it affect my 18 year old daughter?

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claire106
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by claire106 » Thu May 04, 2017 8:47 am
If I take out an Iva would it affect my 18 year old daughter if she was asking for car finance and having to put me as a gaurantee
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kallis3
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by kallis3 » Thu May 04, 2017 9:00 am
It would affect her as, if you have a financial connection your bad credit would impact on her and, if you act as guarantor and she defaults then you will be liable for the debt.
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Michael Peoples
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by Michael Peoples » Thu May 04, 2017 12:28 pm
You would fail a credit check as guarantor anyway and under the terms of your IVA it is unlikely you would be allowed to do so. Your daughter should be unaffected otherwise but someone else should really stand as guarantor.
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Foggy
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by Foggy » Thu May 04, 2017 6:23 pm
If you become a guarantor before entering into the IVA the loan will (should) be listed as a contingency debt --- this might result in the car being repossessed if it was finance on the vehicle, as opposed to being a bank loan for any purpose -- and will depend upon the terms of the loan ( but many have an insolvency clause). You would also then be linked financially and your IVA, when you go into it, could reduce her credit score for the next 6 years.
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