Claim back loan

DocJo89

Greetings everyone,
I am in dire need of advice. Here is my story:
Last October (2017) a colleague of mine, let’s name them “Charlie”, asked me for a 3000£ loan and promised to repay in 6 months, adding 50£/month in interest.
As of June 2018, having received less than half of what I was owed (1250£ out of 3000£) I filed a claim with the Small Claims Court.
AFTERWARDS Charlie replied saying what basically meant “I am under an IVA, so if either you wait for me to repay you whenever I want or you can go through the legal route and you’ll get close to nothing”. Then, they sent another payment in June, but I was still owed 1250£. Charlie promised to repay me over 3 months, but has not sent any money in July.
Does the fact that Charlie did not tell me about their IVA means nothing? I surely feel like they defrauded me... Can I apply for the debt to me to be added to their IVA and have a reasonable sum every month until I have recovered everything?
Thank you!

Craig1981

difficult lending money to friends/family, as this is usually what happens... unfortunate.
do you have a loan agreement with them?
are you declaring the £50 a month interest to HMRC?

any debt taken after an IVA is not subject to an IVA. Whilst on an IVA, the person needs to declare any credit amounts taken out (i think over £500). if he hasn't, this would breach the IVA terms and conditions, as he needs written permission from them to take out this amount in credit, even if it is from family and friends. maybe you could tell him if not paid as agreed, you will let his IP know, putting him at risk of having his IVA cncelled? you can see who the IP is by searching his name on the insolvency register. you can also tell when the IVA was approved and started
https://www.insolvencydirect.bis.gov.uk/eiir/

if the loan was taken before the IVA, it should have been included in it. if the amount is less than 15% of the total value of the IVA, it can be added retrospectively to it, but IVA only pays about 20p-45p to the £, dependant on the agreement signed.

you could go through the courts for your money, but will it really matter? if you won, would you escalate to the high court to enable enforcement agencies to confiscate goods to offset your debt?

hopefully someone will be able to give you some more options, but good luck

macman

Do you have the details of the loan set down in writing and signed by you and 'Charlie'?

foxy-stoat

DocJo89 wrote: »

Can I apply for the debt to me to be added to their IVA and have a reasonable sum every month until I have recovered everything?
Thank you!

If you do manage to get added to the IVA (which is unlikely) you MAY get back 25% or less - but that will be it, you will of lost the right to anything more and he will be under no obligation to pay you anything more.

If I were you I would do what you should of done the moment you gave him the money - think that you have lost it all and anything you do get back will be a bonus.

DocJo89

Yes! We signed a peer-to-peer loan agreeement, which details the timeframe Charlie promised to repay me in, the interest and also that Charlie is responsible to cover all the legal costs deriving from their being in default...

Craig1981

DocJo89 wrote: »

Yes! We signed a peer-to-peer loan agreeement, which details the timeframe Charlie promised to repay me in, the interest and also that Charlie is responsible to cover all the legal costs deriving from their being in default...

and was this after the IVA kicked in or prior to him going onto an IVA?

foxy-stoat

Craig1981 wrote: »

and was this after the IVA kicked in or prior to him going onto an IVA?

If is was after he took out the IVA then it will likely fail and the other creditors may well make him bankrupt - expect to get very little back.

sourcrates

This is what Stepchange say about it :


During an IVA you can’t borrow more than £500 from any lender without asking your IP for their permission first. This includes:

• credit cards
• overdrafts
• personal loans
• payday loans (and other products from commercial lenders)
• borrowing money from family or friends.

Even if you get permission from your IP, you may find it difficult to borrow from many lenders because your credit file will show the IVA and defaults on your existing debts.
You need to think carefully about an IVA because it can affect different areas of your life, including your job, home and your ability to get credit in the future.

If you take out further credit of more than £500 without permission, you’ll be breaching the terms of your IVA.

[Deleted User]

OP friends and money never ever mix, are you a licenced credit broker?
Sorry but I'm 99% certain you can kiss good-bye to the rest of the £

Smellyonion

You charged £50 interest a month. So by your own indirect admission, it was a high risk peer to peer loan.

Such is what happens with such risk.

DocJo89

Craig1981 wrote: »

and was this after the IVA kicked in or prior to him going onto an IVA?

Yes. Charlie entered their IVA on October 2015 and we signed out P2P October 2017. Back then they did not disclose that they were under IVA, or I would have not given them any money...