BIT OF A PROBLEM

[Sadsack]

Hope everyone is well!

I have a bit of a problem and hope someone can help.

When I had my OR meeting after BR, she went through all my expenses and calculated that I could have £800/month for rent, £360 for food, pet food, toiletries and household cleaning etc and worked out that I would have to pay £254 IPA. She sent the pack out including the IPA for signature, documents for the Tax man etc which I signed and returned to her. I telephoned her this afternoon wanting to know when and to whom I must start paying this IPA. She told me not to worry as this can take a month or so to work out, the IPA form would be sent to me for signature (I had already signed it and sent it back), and to let her know that I had managed to find somewhere to rent at £900 per month (bearing in mind an estate agent will not touch me with a barge pole unless I have 6 months deposit and 6 months rent with a guarantor - upfront)where I know that my animals will be safe and there is easy access to motorways for me to get to work. She then informed me that her boss had told her she had allowed me too much in rental and food.

I am now in a situation where I have the tenancy agreement from my prospective landlord which he wants me to sign, I have in good faith paid him £1,000 deposit (he wanted 3 months up front but is happy for me to pay this off) and now the OR is going back on what I originally signed. I want to sign but am scared to at this time. Can they do this???

I really don't want to lose this house and fear that I am going to.

PLEASE HELP!!!!

Sue

Ho Hum! Think I'll bang my drum!

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[mikebdomain]

Sue, what a predicament. I don’t know if they can do this, but what is the point in all the meetings and discussions if they are going to go back on what was agreed!

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[Sadsack]

Hi Mike

I am actually at my wits end. I have not being paying my mortgage to save up for the deposits, have not paid my 2nd charge on the property for 3 months (guess an eviction order will be on its way shortly!!). I honestly do not know which way to turn. And to top it all, the person I love most in the world dumped me on Tuesday night!!!!

What a start to November!!!

Sue

Ho Hum! Think I'll bang my drum!

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[aguise]

Hi Sue
Just to say that is terrible. What is the point of the OR meeting that you had, if the OR was having to report to someone else then you should have been told that it could be subject to change at the time. Have you told them you have already made a deposit and that you will lose the house.

Ang

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[aguise]

Ohh Sue sorry I posted at the same time. Just read the last bit of your post, not a good start to the month. Just have a hug from me. Hope things go better for you soon.

Angxx

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[mikebdomain]

Sue, I really do feel sorry for your situation, jeeez it all happens at once doesn't it..

I would think the second charge company will be sending a repossession letter out soon.

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[Sadsack]

They have already handed it over to Eversheds, they have written to me and I have forwarded this on to the OR along with all the other information.

I am desperately searching the insolvency web site to find out if the OR can change the IPA once I have signed it and agreed to their terms. The one thing that strikes me as strange is that although it was a telephone interview, I was unable to write all the allowances that she gave me and she didn't send it out to me for clarification.

I do understand that the OR has a duty to give the creditors as much as possible and I am only too willing to comply. I also understand that if my salary increases I need to notify the OR and the IPA could possibly increase. I am happy to comply to this as well. What I don't understand is that if I had continued to pay my mortgage and 2nd charge, I would have £500 left every month to pay utility bills and live, therefore there would be nothing to pay into an IPA as there would be no surplus income.

Aaaarrrrrgggghhhh!!!!!

Sue

Ho Hum! Think I'll bang my drum!

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[Skippy]

Oh Sue, I'm sorry you're having such an awful time at the moment.

I have checked the wording of my IPA and it states that:

I understand that when this document has been signed by the Official Receiver it will become a legally binding document and that it may only be varied by written agreement with the Official Receiver or any trustee appointed, or by order of the court.

Have you received the signed copy back from the OR?

If I were you I would ask to speak to your examiner's boss and explain to them what has happened. I really don't understand how they can alter the figures once you have signed the IPA.

Good luck x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

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[mikebdomain]

Sue I have had a scout around and can not find an answer - hopefully one of the BK experts will be able to enlighten soon.

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[Sadsack]

Skip and Mike - thanks for the info. I also cannot find the answer but will keep looking.

Skip, I have not yet had anything back from the OR's office, the person I am dealing with is the "Examiner". There seems to be some lack of communication - in my interview I mentioned to her that I wanted to go "home" for a holiday and she said that my holiday allowance will only be £96 per year. Today she recalled me saying that I wanted to go and that she can make an allowance of £40 a month!!!!! She also asked me to put in writing, all my monthly outgoings again and to write a letter to OR's office explaining why I would want to rent such an expensive house. One thing is for sure and as I said earlier, no estate agents will help, they want so much money upfront, very few landlords are willing to allow tenants with animals and when you do find a willing landlord, you have to pay that bit more. My gut reaction was to just say sod it, come to some arrangement with my mortgage lender and 2nd charge lender, which means I would stay in this house, have no food, no heating as I can't afford to pay for the oil and no money to fund an IPA.

But I am not like that - all I want to do is keep everyone happy and pay what I can.

Sue

Ho Hum! Think I'll bang my drum!

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[lily]

Oh Sue

You must feel like giving up right now, I am so sorry that everything seems to be going against you. You must feel like youre climbing a vertical cliff face. Its the worst time of year for ending relationships, I really do feel for you. I dont have any answer to your problem, I just wanted to say, I really feel for you, I am sending extra special postive thoughts your way.

Stay strong, stay sane, we are rooting for you.

lily

[mish1953]

Sue - Im still expecting to come to the housewarming --lol.

I must admit £360 for food and pets is very high , Im allowed £300 for food for 2, and £20 for the animules. I asked about the pets , insurence etc but was told the max allowable for pets is £20 and anything else comes out of surplus .

£40 a month for hols ! - Jammy sod ..lol
Do you think the receiver was trying to balance one against the other ?

The way I see it it is that you need to book an appmt with the OR and go over it all, find out what their basis is for the rental allowance, explain that you have arranged a rental based on THEIR figures and that you will be unlikely to manage to get anything else at that price with athe animals - most landlords dont like big dogs.

If push comes to shove you can refuse the IPA and make them go to court for an IPO .. but then its down to how the court reacts on the day .. not to mention all the hassle and torment with court again. Im not too sure about that route.

Im so sorry to hear about your partner, merde week then - no wonder we havent heard much from you ..

hugs
Mish
xx

[ray_a]

Reading this Sue it will be interesting to see what the experts think before making an effective response but it would appear that the OR has made a mistake!

You have got to be able to live!

[MelanieGiles]

Hi Sue

I am getting increasingly concerned about the lack of any consistency within the ORs offices about calculating IPA payments - which appears to be entirely at the examiner's discretion. I suggest that you insist on speaking to the person who has disallowed the expenditure and explain the situation to them, and that you will seek legal advice if the original paperwork is not binding.

I also feel that £360 is a large allowance for one person, and you would never have that accepted under an IVA, and this is so frustrating as our Insolvency Service ought to be leading the way and creditors should accept their lead.

So sorry to hear about your break-up. Hopefully this will be temporary rather than permanent.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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[Sadsack]

Thanks for the replies everyone! Mish, the housewarming is on (if I ever get into it) and thanks for the call this evening.

Melanie, I accept that the "food" allowance is high, I am happy to reduce this and get by on £260 - it is managable. I am also happy to forgo the "Holiday" allowance as well - I have not been "home" for 5 years, 3 more won't kill me!!! I hope!!

In reality, I searched for months for accommodation, found some relatively cheap houses, went to view them and I wouldn't even go into some of them. I have to take care of my job and animals, these are my number one priorities. I looked for accommodation based on what the Examiner allowed for rental and managed to find something absolutely ideal with a long term lease.

Should I just go ahead and sign the agreement and fight about it all later - at least I will have a roof over my head and my "babes" will all be safe? The last thing I want to do is a) kick off with the OR and b) come home from work to a "flat cat"!!

More advice needed please.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/