What kind of loans can be included in IVA

jillyflower

Hi
Can all loans be included in an IVA. I know that certain things like council tax can't be included but I have a loan from an individual and there is no credit agreement or contract just a verbal agreement. Can I include this in an IVA.

Thanks

MarcG_2

You can include most financial liabilities in an IVA, including Council Tax arrears, to the date of your IVA being approved. If you have a Liability Order for your Council Tax then the whole amount of that Order can and should be included in your IVA as an unsecured liability.

Regarding the loan, your IP will probably want evidence of the loan (for example, a bank statement showing receipt of the money). The bigger issue is, if your other creditors will allow someone who is connected to you (or could appear to be) to claim for dividend purposes in your IVA. I am sure that your IP will be able to explain all of this to you.

Good luck

Charco_2

Yes, provided the debt is provable (some kind of paper trail to show where the money came from) then you can include them in the IVA.

Is the individual related to you? How close are they to you? This can have a bearing on how the debt is dealt with!

jillyflower

thanks for that the person is not related to me, or connected in any way.

Charco_2

Was the debt created out of some sort of business deal or out of friendship?

jillyflower

It was a business deal but there is no written agreement, but I do have a bank statement showing the money being paid into my account.

Choo_Choo_4

As long as you can prove this debt then it can be included in the IVA and if you have bank statements showing the money being paid into your account then this should be proof enough. As MarcG has pointed out however, SOMETIMES your other creditors may not allow this person to vote on the IVA due to the arrangement i.e. if they are related to you they may be asked to step aside but your IP should advise you of this.

Charco_2

I'm sure it would only be a relation (or somebody you had a relationship with) would be asked to step aside.

If it's a legitimate business then they simply go into the IVA. Just because it isn't a big national bank doesn't mean they don't have legitimate claim.

For example a local solicitor or a dentist or second hand car dealership.