You repay what you can afford for an agreed period (often five years).
At the end of that term, your unpaid debts get written-off.
You have to include all debts in an IVA.
You cannot choose to exclude a guarantor loan.
Can you consolidate a guarantor loan?
By using them to consolidate debt and making the regular repayments, you may be able to build up your credit score by proving that you have the financial ability to repay loans and other bills on time. All of our guarantor loans can be used as debt consolidation loans.
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.
Can a guarantor loan be included in an IVA?
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.
What happens if a guarantor refuses to pay?
What if a guarantor refuses to pay? Quite simply, if a guarantor can technically pay, but decides they will not pay it for whatever reason, they are breaking the contract that they signed. It is their legal obligation to pay for the loan in your name.