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IVAs and Debt to Friends and Family

If you think that you qualify for an IVA, you are likely to have outstanding arrears on credit and store cards, loans, overdrafts on your overdraft and other signs of drowning in a pool of debt. The good news is that you can also help friends and family to recoup some of their money, because as individuals they are also entitled to some of their money back too. As long as they can prove the debt, with some form of evidence, agreement, bank transfer proof, receipts etc, you will be able to include them within your proposal to creditors. What's more, they are the most likely people to agree to your proposal if you are all on good terms.

The question is: Do you want to your friend and family included? Wouldn't you rather pay them back what you owe them in full at a later date? Would they not consider this, as a way of helping their friend or relative out of a difficult time? Or perhaps you just need to start with an entirely clean slate. Don't forget that IVAs only assist with unsecured debts. They do not help with secured mortgages, fines, child maintainence payments and other payments, so you are also going to have to take responsibility for those whilst you are making your IVA payments.

The best advice is to go and visit a local qualified and licensed IVA advisor, someone experienced in dealing with Insolvency. They will help you with clear and impartial advice as to what are the best options and choices for you to make, to free yourself from the crushing burden of debt.