IVA .. social fund loan??

king16

Hello. I am getting help from Step Change Debt Charity and filled out their debt remedy form, and they have advised an IVA application (monthly payment of £80, which is fine and affordable for me) or Bankruptcy .. but i am leaning more towards the IVA

I was just wondering if i should/could include an old social fund loan on my IVA aswel? I am no longer receiving benefits and haven't been for around 5 years.

Also, how/who decides if the payments are for 5 or 6 years?

Thanks in advance for any help.

ToxtethO'Grady

You should include the loan however if it isn't paid off during the IVA it will not be written off as Social Fund Loan are not provable debts in insolvency.

The proposal will explain when it will be extended from 5 to 6 years. Usually if you miss any payments or take your payment breaks they will extend it. Also if you have property and can't re-mortgage that's one of the main reasons it goes to 6 years, each year your IP (Insolvency Practitioner) will check your budget and may say you can pay more in to the IVA. It doesn't stay a fixed amount for the 5-6 years so if your amount goes down it's another reason to extend it.

king16

Thanks for the reply.

ok when i call StepChange today i will ask them to add the social fund loan on as i didn't put that on when i filled out the debt remedy form.

I have spoken to the social fund recovery team as i only got the letter for this a month ago but the social fund loan was taken out back in 2010, i have agreed a payment plan with them, so once the IVA goes through i stop paying them the payment plan as they will be included in the debtors in my IVA and will get payment through them? is that correct? but if after the 5 years say there is still £100 left owing i would need to pay this to them?

sorry for all the questions.

I dont own my own home, i rent. i dont have any assets worth over £1000, i have a car but its only worth about £400.

My only concern with the bankruptcy really is not knowing if or how much they would set the IPA rate at, i assumed it would be the same as the IVA payment as that is the surplus i would have? is this correct or would they calculate it themselves from my income?