A friend owes me £4.5k.....

Jhp1956

...can she include this in an IVA without my consent? Debt goes back 5 years, verbal agreement and now paying £15pcm as lent her £1000 6 months ago! Yes, I know, never lend to friends! She promised to pay me back on sale of house but is in debt and about to take out an IVA.

foxy-stoat

She can include it and you will be asked to attend the creditors meeting where you can reject or accept. If 75% or thereabouts accept then you will automatically accept.

You may get some money back, maybe 15% of the total balance. If it was verbal then maybe get it in writing now and back date the agreement in case you are asked for paperwork.

System

foxy-stoat wrote: »

If it was verbal then maybe get it in writing now and back date the agreement in case you are asked for paperwork.

This. No paperwork or even not correctly constructed paperwork with the legally required items to constitute being a loan agreement and you have no enforceable loan.

foxy-stoat

Personally I would of forgotten about the money the day it left my account.

Good luck and do report back with news.

Jhp1956

Thanks. It!!!8217;s such a life lesson!!!

fatbelly

15% is a bit pessimistic - most IVAs I see are for more than that...

... but there again most IVAs I see have failed or are failing. In practice a lot of creditors get nothing or very little.

DorisTrousers

A slightly world weary view there, but an understandable one at that. It is the nature of the free debt advice world that we see only the failures and will never see the successes. I would suggest that an IVA is your best bet of getting anything at all back, and if the debt genuinely exists then the I.P. is bound by law to put it in anyway, though you do have the right to say no, or ask for modifications that may suit you more.

PrettyKittyKat

I have seen an IVA with a creditor that was an ex partners Mum that lent the person doing the IVA money and it was included. The 'creditor' was quite funny and tried to put MODS on such as 'not allowed to have a sky entertainments package must only have basic tv' and 'not allowed to go out to the pub at the weekend' which obviously were rejected (luckily she wasn't a majority creditor!). She definitely wasn't happy about being included in the IVA but there was nothing she could do other than reject it, but as the majority accepted she had to.

normanna

Nothing funny with the lady objecting to not getting her money back or very little of it while the debtor continues with a luxury lifestyle. Allowances like sky entertainment packages are ridiculous to me.

TakeAwayKing_2

It’s not just that she “can” include you, but rather that she must include you.

PrettyKittyKat

normanna wrote: »

Nothing funny with the lady objecting to not getting her money back or very little of it while the debtor continues with a luxury lifestyle. Allowances like sky entertainment packages are ridiculous to me.

They get allowances but can choose to spend them on what you want. If someone gets a £21 allowance for a basic package but chooses to cut back in other areas so they can having a higher package, then that's their business an part and parcel of budgeting. We never told customers that they had to cancel higher packages, or not have starbucks as it's cheaper to make you own, or walk rather than paying for parking, you just tell them that £x is the allowance the creditors allow so they need to adjust their spending accordingly.

This same 'creditor' I referenced said that she knew that the debtor bought Heinz beans and he shouldn't allowed to he should have to buy supermarket own brand. Her responses were emotionally lead. We understood but it was still extremely usual as the vast majority of creditors were companies, not individuals.