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IVA and unpleasant comment

(120 Posts)
moneymoneynone Thu 21-Sep-17 22:03:09

Financially been struggling for a while. Lots of factors and have various debts mostly credit cards. Also had a small loan off a family member
We are looking at and will probably go for an IVA.. obviously as part of this have to disclose all debts and as I understand it pay some for 60 or 72 months then rest is wiped off.
Family member not happy. 1. Because they may not get all their money back and 2. Apparently it teaches me I can 'get away' with 'frivolity'
I feel bad I really do but an IVA isn't the easy option as it's a form of insolvency and will affect a lot. We've had nearly a year of shifting money around trying to pay everything and it wasn't sustainable and I have been depressed. This way it really helps us.
I feel hurt we are being thought of so badly though
In this instance would you have this relative in the IVA or try and it them off in full over longer term as I think it's the issue some debt is cancelled out that's causing real resentment I am not sure what to do

LittleMissCantbebothered Thu 21-Sep-17 22:07:32

Exclude your relative from the IVA and pay them back in full. It's one thing to have big businesses in your IVA, who earn huge profits, but is totally disrespectful to your family member to do them out of their hard earned cash.

Migraleve Thu 21-Sep-17 22:09:56

Omg surely you could continue to pay back a small loan to a family member!

Shocked that you would even consider adding that into an IVA.

Also, don’t tell people your business? Then they can’t make comments!

2014newme Thu 21-Sep-17 22:11:56

Pay back your relative that's disgusting why should they suffer for helping you out? Shame on you. Totally agree with your poor relative.

Poonmig Thu 21-Sep-17 22:11:59

It’s illegal to exclude a creditor from your IVA - the OP has to include them in. There’s no choice in that

Ttbb Thu 21-Sep-17 22:12:37

IVA is really more for businesses. Given that it was a a loan based on good faith can't you have the decency to pay it back?

AfunaMbatata Thu 21-Sep-17 22:14:31

Pay it back! I'd be furious if I was your relative.

LittleMissCantbebothered Thu 21-Sep-17 22:15:17

It's not illegal to exclude a creditor - the trustee can agree to exclude certain debts. In any event, I'm going to assume there is no documentation to prove a loan was given by family member? If that's the case there is no way for any other creditor to prove a debt had been excluded as it's basically an informal arrangement.

Absolutely disgusting that you are wanting to include your family member in an IVA. Pay them back in full asap.

Migraleve Thu 21-Sep-17 22:15:48

It’s illegal to exclude a creditor from your IVA - the OP has to include them in. There’s no choice in that

Utter crap of course they have a choice! It’s a small loan from family ffs

Knittedfairy Thu 21-Sep-17 22:21:58

If I were the relative who had loaned you money, I would be furious and heart-broken over this. I would also ensure that no- one else in the family lent you a penny. Please reconsider including your family member in the IVA.

safariboot Thu 21-Sep-17 22:27:16

You have a few legal options. Include them in the IVA. Like anybody else you owe unsecured debt to, they can vote for or against it; voting is done on money owed, £1 is one vote effectively.

Exclude them from the IVA and pay them nothing until the IVA is completed.

Or exclude them from the IVA and attempt to pay them from your living expenses budget. This is likely to only be viable for small debts.

What is not legal is to exclude a debt to a family member from the IVA and to keep paying them money such that you're not able to pay as much on the IVA as you should.

moneymoneynone Thu 21-Sep-17 22:31:46

I was told we HAD to include ALL debts there's a section for loans from friends and family. We haven't been able to pay then anything as can't afford it and thatbutself had caused problems.
I think they are upset that some of it may be wiped off and then they lose out, hence me wondering would I be able to not include them and then repay at a later date but in full ? I'm just looking at all our options because I'm so depressed and stressed about our financial situation

LaurieFairyCake Thu 21-Sep-17 22:34:14

Once the IVA is over you can choose to pay them back. If you tell them that I hope they are kinder.

moneymoneynone Thu 21-Sep-17 22:34:28

cant you have the decency to pay it back

That's not the issue....I WANT to pay it back I just CANT
We have to prioritise rent, utilities and food and we are trying to get the IVA sorted out. I feel dreadful about it but I am very limited in whatbwe can actually do. It's really upsetting for all concerned

lemonsandlimes123 Thu 21-Sep-17 22:44:17

Well they are not wrong are they. An IVA basically does allow you to get away with not fully paying your debts, fairly poor behaviour. Also a really shoddy way to treat a relative.

moneymoneynone Thu 21-Sep-17 22:47:12

I do feel awful about it. We borrowed after one financial disaster and it helped us and we started to repay a set amount only for other things to go wrong a few months later
I've kept them fully informed, apologised all the time and been open about the fact we need help and that's why I had been open about the IVA because I was under the impression we had to include every single debt.

Belindaboom Thu 21-Sep-17 22:50:10

How much is it? I think the amount matters in this case.

moneymoneynone Thu 21-Sep-17 22:50:53

It was £6000, we paid back £1400 of it before we were unable to make any more repayments

Belindaboom Thu 21-Sep-17 22:53:00

Ok, so 4.5k? To me that's not a small loan, it's a lot of money and I'd be gutted if this happen

moneymoneynone Thu 21-Sep-17 22:53:58

I totally understand that and we had every intention to repay it but suffered a series of things that absolutely ruined our financial position

Belindaboom Thu 21-Sep-17 22:54:07

Oops happened to me where I'd lent money in good faith.

I don't think you're indecent or terrible, the IVA is the right thing for you but it is really crap for your relative.

Belindaboom Thu 21-Sep-17 22:54:35

You ref

Belindaboom Thu 21-Sep-17 22:55:38

I think I need to give up...

But you refer to it as a small loan which implies maybe you don't understand the full impaft. It comes across a bit like you think it's unavoidable so they just have to suck it up.

safariboot Thu 21-Sep-17 22:56:42

It takes two to make a debt.

OP, follow the advice of the professional you already have advising you. And personally I think your family member should be more understanding that you have money problems.

moneymoneynone Thu 21-Sep-17 22:57:48

I think I call it a small loan as it is the smallest amount. The other debts are larger so that's why in my mind it's just the smallest one

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