I went into a IVA whilst i was my sons guarantor

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paula256
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by paula256 » Sat Jul 22, 2017 9:30 am
Hi I went into a IVA whilst i was my sons guarantor, i was told my guarantor commitments would be cancelled as I would not have the funds to pay if he could not pay his rent, since then my son defaulted on his rent through sickness and could not work, he was evicted and the landlord wants 3k from me, he knows i am in a IVA but apparently i am now told by my IVA that I have to pay and have a break in my monthly payments to cover costs !! Does anyone have any advice as one minute I am unable to be guarantor which I was happy about and now I have to pay.
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Foggy
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by Foggy » Sat Jul 22, 2017 9:51 am
Your potential debt (the one you were guarantor for), as far as I am aware, should have been included in your IVA as a possible liability .... the IVA does not "cancel out" being a guarantor. Your IP is trying to be helpful in allowing you a break to make payment to the landlord, although this should never have arisen in the first place.

Whys and wherefors apart, the choices now appear to be to take the break and pay the landlord (get agreement in writing from your IP) or risk the IVA failing. But first, discuss the possibility of the debt to the landlord being included in your IVA now --- this might be possible if the debt to be added is less than 10% of your overall debt.

Hopefully, on Monday, an Industry Expert will be along to advise.
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Lisa Thomas
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by Lisa Thomas » Mon Jul 24, 2017 8:25 am
The guarantee should have been listed in your IVA as a contingent creditor. I would expect it to have been listed for £1 as presume the account was up to date at the time of your IVA commencing.

Check your paperwork to make sure they were included as a creditor.

Even if it wasn't specifically mentioned the landlord is bound by the IVA, alongside every other creditor.

If you disclosed this to your IP at they time they should have included in the IVA proposal, albeit it it is up to you to check they are correct before signing.

However the landlord could potentially challenge the validity of the IVA if they were not included as a creditor.
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Michael Peoples
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by Michael Peoples » Mon Jul 24, 2017 9:27 am
I agree with the other posters. If your IP knew of this debt then it should have been listed as contingent and the landlord notified. At worst you would then have to ensure all creditors still received the same dividend but potentially you owe nothing.
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paula256
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by paula256 » Mon Jul 24, 2017 11:12 am
Hi, stupidly I took the advice from the company that set up the IVA that I am unable to be my sons guarantor, I copied and pasted our names on the insolvency register to the estate agents and for them to inform landlord.
My son was in arrears with his rent and we had to make payment by credit card which went into IVA my son was never able to pay the £700 a month due to losing his job after this , hence the eviction notice given.
The guarantor did not get added to IVA even though the company were aware of this, if they knew why didnt they advice me otherwise?
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Michael Peoples
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by Michael Peoples » Mon Jul 24, 2017 12:56 pm
If the guarantee was in place pre IVA and the IVA company knew about this then the debt should have been covered. You need to speak to the IP and ask why it was not listed at the time. It may be that the landlord will give up anyway as it could be expensive and potentially pointless to pursue but speak to the IP anyway.
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