can it be included

totallystuck112

Thanks your advice has been really helpful!
Just another quick question if i may. I borrowed some money off my sister a while back now for the car which is now in my husbands name as previously stated. I owe her about 4k now. When my husband gets back we are expecting a lump sum of about 5k to be paid to us for him being away for so long. The debt i owe to my sister is causing right family grief and rifts between us as we cant pay it (i know i know we shouldnt have borrowed the money in the first place). Are we likely to be frowned upon or even get into trouble when doing our iva if we pay that sum we owe to her off instead of putting that money into the iva. even if we pay her back before we even get into a iva?
I cant bear this bad feeling between us because of money and its pulling my family apart.

FoggyBrain_2

Hi again. The debt to your sister will have to be included in the IVA, but she will be what is known as an associated creditor, so will not be able to vote, and the other creditors might require that she gives up her share of the dividends !! Once you enter the IVA the lump sum will be paybale into the IVA, according to the terms of your proposal. In all probablity it will be regarded as a bonus, so 50% you get to keep -- you would be free to give that portion to your sister (might cause a few ripples though as it would be regarded as favouring one creditor over another, which is a no-no!). If the timing is right I would get the lump sum and pay sis before entering the IVA.

totallystuck112

again thank you so much! I think I will see if we can pay her before getting involved with an iva as she would not be best please if she had to give up her dividens in favour of our other creditors. Likewise only getting 50% of her money back will probably not safice either.
Thankyou for your help