A guarantor loan is an unsecured debt so it can be included in the arrangement.
However when you start the IVA, your guarantor will have to start making the normal agreed payments for you.
If they cannot pay the monthly payments, creditors can take enforcement action against them to retrieve the debt in full.
Can I get a loan with a IVA?
If you are currently in an IVA it can make it difficult to take out a new credit agreement, such as car, van or motorbike finance. However, it’s not impossible to get a car loan with an IVA. Moneybarn has expert knowledge in providing finance to customers in an IVA, who have bad credit or a poor credit score.
Can I get an overdraft with an IVA?
In fact it doesn’t matter that a bank will not close an account with an overdraft. The simple rule is that you should include all of your unsecured debts in an IVA including any overdrafts that you have. If you choose a new bank account with an overdraft facility it may well be closed without notice during your IVA.
Can guarantor loans be written off?
A guarantor loan is an unsecured debt. As such it must be included if you go Bankrupt. As far as you are concerned it will be written off with all your other unsecured debts. However if they cannot the loan company can take legal action against them to force them to pay.
Can a guarantor loan be included in a debt management plan?
Will debt management plans include guarantor loans? The answer is that they can (and often do) include loans backed by guarantees just as they do credit cards, store cards, loans, overdrafts and catalogues.