Iva

daingean

Hello. my son has got himself into debt with credit cards and a small bank loan, total about £16000, He has contacted IVA and shown me all the paper work. To me, it looks too good to be true. Is there profit in it for them and are there any catches?
He is worried about his credit rating when all his debts are paid
Any help would be very much appreciated

poorandindenial

Hi daingean

First of all IVAs are appropriate for some people but remember that they are one step away from bankruptcy so they are not to be taken lightly (here is a guide to IVAs)

You might want to get your son to speak to a professional non-profit debt charity, their advice will be more realistic than the fee paying ones, here is more info: link

Have a nose through these and of course post any questions you have on here.

CCCS have a debt remedy tool on tehir website where you can enter all the details of your situation (or your son's in this case) and see what options might be suitable for him

Good luck, I hope you get the info you need

daingean

Hello and thank you for that. I could lend him the money but I want him to take some responsibilty for his debt. Could you tell me if there is some restriction on cash gifts to a 'child' from a parent- even though it would be an interest free loan with a direct debit set up?
I haven't told him yet.
Thank you for your help

thepinkladez_2

i think with cash gifts it has to be declared to the company you set up an iva or dmp with, but not really too sure!

bbJp_2

I am new to this and am looking to apply for an IVA, I am 27,500 in debt, credit cards, graduate loans, my outgoings on these debts leave with me very little per month to live on. If I do get an IVA, does that mean that I will have a lot of problems getting a mortgage at the end of it, will I have problems travelling abroad, or what if eventually I wanted to move abroad.

And does anyone have a recommendation of a company that would be the best to use to apply for an IVA? I feel like I am almost drowning in information....oh and debt!

fermi

bbJp wrote: »

And does anyone have a recommendation of a company that would be the best to use to apply for an IVA? I feel like I am almost drowning in information....oh and debt!

Talk to CCCS.

They will be able to help you work out if an IVA is really your best option.

If it is, then they can help you get one set up where you wont be ripped off by fees and costs that are higher than necessary.

RAS

daingean wrote: »

Hello and thank you for that. I could lend him the money but I want him to take some responsibilty for his debt. Could you tell me if there is some restriction on cash gifts to a 'child' from a parent- even though it would be an interest free loan with a direct debit set up?
I haven't told him yet.
Thank you for your help

You ned to get very clear advice on this for your own safety.
basically, he would only be able to pay you back on the same terms as the other creditors. If he does and IVA on 60%, you lose 40% immediately. TAlk to National Debt Line or the Insolvency help line.

CLAPTON

daingean wrote: »

Hello and thank you for that. I could lend him the money but I want him to take some responsibilty for his debt. Could you tell me if there is some restriction on cash gifts to a 'child' from a parent- even though it would be an interest free loan with a direct debit set up?
I haven't told him yet.
Thank you for your help

As already said he should contact a not for profit company to get advice.

Its relatively unlikely he will get an IVA with debts of 16,000 (this is considered quite low).

However, an IVA will trash his credit rating for 6 years but if he has defaulted on his debts already then this may already have happened.

Without seeing his SOA its impossible to give proper advice.

There is nothing to stop you paying his debts if you wish... there is no gift tax in the UK.... but be very cautious about lending him money unless he really has learnt his lessons... otherwise he will simply build up new debts and the cycle will restart.

daingean

Thank you for your answer. I am very cautious about lending him money, I'll see the direct debit set up before I do anything. £16000 is the minimum that DVA will manage, he hasn't signed anything but he owes them over £200 to 'offset the preparation of the documents'
Thank you

CLAPTON

Just to add

If you did lend him the money but inspite of this he went on to run up further debts. Then, if in a year or so needed to enter a DMP or IVA etc. its important for you to understand that they will disregard a family loan which may put you in a very difficult situation.

poppyg_2

Clapton I'm not sure this is correct about the family loan? I have a loan from a family member and when I filled in the CCCS online debt remedy they allowed me to include this loan with my other outgoings and suggested a DMP and they had definitely taken away the full amount I pay the family member as part of my outgoings.