Advice needed urgently

[lloyd01]

I am approaching the end of my 2nd year IVA. All payments so far have been made each month. When my IVA was approved there was a modification advising me that I should have my house remortgaged in the 4th year pay any equity into my IVA and end it early. At the time I jointly owned the property with an ex partner and we both advised the IP that we would be having to sell the property as the IVA wouldnt let me take up sole ownership. The Property has been sold last year but I have spent the money already . IP do not yet know its been sold yet as i am actually now renting the same property off the person that bought it!! The equity made (10k) I have been told by a family member that I can have in 2 years time i.e the 4th year when I was going to do a remortgage. I am asking for advise, I appreciate I should have paid the money into the IVA but without being dramatic I was at a very low point in my life and decided not to declare it. I also never signed the modifications report. I am willing to carry on paying the monthly amount and will be happy to reach the original divided mentioned 61p in the £. My monthly outgoings are actually slightly more now that when i owned my property but due to excess money I earn of which i can keep 50% I havent declared anything. I am obviously worried at what the repercussions of my actions might be. If needs be I will go to court and explain how I was feeling etc. If i have paid upto date what can happen potentially? I really need to know what potentially will happen to me and what is a likely outcome??? Thanks

[Lisa2009]

You now really need to be open and honest with your IP.
You obviously realize that there are things you should have declared.
Please dont leave things any longer, you will need to know where you stand one way or another. It could be that your actions will cause your IVA to fail, i dont know but you really do need to discuss this with your own IP.

[MelanieGiles]

First of all stop worrying. Whilst you should have advised the IP of the house sale, they should have put a restriction over the property to enable them to be informed of this and potentially stop the sale if they felt this was necessary,so there are faults on both sides.

You have technically defaulted on the terms of your IVA, but have a plan in mind to sort this out - so at the end of the day creditors may well not be prejudiced unduly. It would be better if you could get the money off the relative now, as your IP may not be prepared to allow the IVA to continue on the promise of someone else which cannot be enforced.

With a potential return of 61p in the £, it is in no-one's interests to see the arrangement fail - but you should take immediate steps now to put things right with your IP.

[lloyd01]

Many thanks for the advice Melanie. I wont be able to get the money off a relative yet so will have to see what they (IP)says. I am a bit confused as if I had have remortaged in the 4th year the IVA could be ceased (to keep up with higher mortgage payments). The IVA report throughout does also seem to give an alternative of 60 months at the rate i'm currently paying to make the 61p in the £??? If for some reason this does default the IVA, where would I stand re creditors and the money paid into the iVA so far (approx £13,000).

[MelanieGiles]

Hypothetically if your IP did see cause to fail the IVA on grounds of your breachm the money they are currently holding would be distributed to the creditors bound by the arrangement

[lloyd01]

I see, would I be back to square one then regarding the creditors coming back to me for the remaining monies?

[kallis3]

I think you would Lloyd as your debts wouldn't have been paid off and they would start putting interest and charges on as well.

[MelanieGiles]

Technically yes - but as I don't think this would actually happen you should stop worrying. Pluck up the courage for a call to your IP tomorrow, to see if they can suggest something different.