Guarantor now stuck under IVA

jaimebriggs

Can anyone help - my mum acted as a guarantor on a HP for a car a few years ago - last year I took out an IVA and was told by the company that this would NOT affect my mums credit rating/score. She is now in difficulties in paying her mortgage and no one will offer her a new mortgage to switch to as my IVA had stumped her credit rating akthough she was only a guranator!!!
she is in big financial problems and I need urgent advice on how to proceed. Will companies take guarantors off an agreement in rare circumstances?

Not_so_wise_one

Do you live at the same address? Are you linked in any other way apart from this loan? Have you done a financial dissasociation?

anniecave

I would have thought the mum's credit rating would only be affected by the HP agreement if the HP company had refused to agree to the IVA and had instead pursued the mum - which they are legally allowed to do.

Did the HP company agree to the IVA?

Are the HP company pursuing the mum for the debt?

Could it be that the mum's other financial difficulties has affected her credit rating, not the HP agreement?

MIVAA

Hi jaimebriggs

The HP company are excluded from the IVA, and as such they don't even need to be informed of it.

So long as you carried on making the payments on schedule, as the IVA would have allowed enough money for you to be able to do so, there ought not be any impact from the IVA on your mum at all.

It is true that one's financial status can 'damage' by association, which may have happened, if you failed to maintain your HP payments, or if your mum's name was also added to the HP agreement.

I hope this helps

MIVAA

MIVAA

By the way jaimebriggs,

You mention your mum is in big financial problems - would you like advice for her?

If so it might be a good idea to start a new thread on the main board, then you'll have a wider audience to help her.

MIVAA