Any help welcome

[lloyd01]

I am 12 months into an IVA and have made all payments in full as required each month so far.I am currently trying to sell the property i own with an ex partner, 6 months ago our 2 yr mortgage deal ended, when it ended my mortgage rate went on a default rate which means i am paying about £200 a month more than before (£100 each), i cant change the rate as i'm not wanting to get in a new mortgage with my ex partner. In addition to this when i put my house on the market my lodger (who we got in for ex partner half of mortgage) left. As such since then the bills in the house have been all my responsibility. I decided not to inform IVA at the time as extra money i had earnt in overtime was assiting me with covering this. Because the sale of my house has dragged on i am now in a situation where i am way behind with council tax and all utilities are threatening to cut me off. In addition the sale of my house fell through right at the last minute and i now have a soliciotrs bill for the work done so far.I honestly believe if i miss just one months payment to my IVA i could sort all the outstanding bills that have accrued out and then carry on with my monthly payments to the IVA the following month. I would then try to pay the month i have missed over the next 12 months with any extra overtime i earn. I think if i contact my IVA company they will start sending me income and expenditure forms and might ask for a variation but as i'm selling my house i dont want to have to do all the right now as my circumstances when i sell my house will change again with regards income and expenditure. I really am stressing with what to do and my IVA comany in the past have not been very helpful. Can anybody give me some sound advice please!!

[Adam Davies]

Hi
Is the property part of your IVA agreement ?
You need to get the utilities and council tax upto date so yes I would write to your IP and inform them of the situation and ask for a one month payment break,suggest that you increase your IVA payments by about 10% for the next year to repay the missed month.
You do really need to keep your IP in the loop,they are there to assist you and make sure that your IVA is successful
Regards

[MelanieGiles]

There should be no problem in asking permission to miss one month's payment as Andy has described - but do make sure that you stick to the repayment programme you agree with the IP which means make it an affordable offer in the first place!

[lloyd01]

Thanks for the response. The original request was that i remortgage in the 3rd year but having previously explained my situation to my IVA practioner it was suggested that when i sell the property i make a lump sum payment and then carry on with monthly payments. As long as i end up meeting the final divided i would be ok. Is this correct also?

[MelanieGiles]

Is the property included in the IVA at all? 4th or final year revaluation clause?

[lloyd01]

Hi melanie. When my IVA proposal was first submitted to the creditors the house was not included. After the creditor meeting they agreed to it but asked for a modification to the original proposal that i remortgage during the 3rd year, pay them the most i could get and end the IVA early as my mortgage would then be higher each month. I have never signed an RX1 form as my partner refused to do so and my IVA practioner is aware of this. They have now said that when i sell, i can put a new offer to my creditors which would include a lump sum payment from the sale of the house and then possibly 2 years more monthly payments. I did not want to have to give up my home but the IVA originally said i could possibly take on the mortgage on my own providing it would not be detremental to my creditors. I found that as i was paying a really expensive rate with my ex (due to bad credit) i spoke with an IVA mortgage expert from thsi forum and he thought i could borrow the extra (12K) to buy out my ex and my monthly amount could stay about the same. When it came to selling my IVA said that was not allowed and i would have to sell or get somebody else to buy out my ex. The whole thing has been so stressful. Its very difficult to understand what is allowed and what is not. In addition i have never signed the modification to the original request so where do i stand on that? Apologies for the many questions.

[MelanieGiles]

The key to answering your questions really lies within the IVA proposal and Chairman's Report themselves, as these are the terms that you are bound into.

As a rule of thumb, when it comes to varying IVAs, so long as you can try and offer the amount originally pledged to creditors, there is some chance that they will accept the offer without worrying too much about where the money is coming from, although you will have to demonstrate that you are putting your best foot forward and to include assets which were originally included.

Perhaps a face to face meeting with your IP is in order - or Paul of Revive may be able to assist you in reviewing the paperwork and making a sensible offer.

[lloyd01]

Thanks. Going back to my original question about the 1 month payment break, Should the latest info i have given make any difference to that?

[MelanieGiles]

Can't see why it would!