It has been quite some time since I last posted on the site - my IVA was accepted at the first attempt, albeit with modifications. The standard modification was gaining more pence in the £ of which I was quite happy to agree to. However (there always is a "however"!!!), the original proposal was for me to release a lump sum payment of £5,000 through remortgaging my property which was to be done within the 1st year of the IVA. This was subsequently changed to £13,000, then changed to £16,000, changed again to £16,660, and now it has changed again to £22,500. This was all done after the acceptance of my IVA by my creditors. Agreeing to the original terms, I suggested selling my property, realeasing equity into the IVA and then having sufficient available for me to realise a 15% deposit on a smaller, less expensive property. Herein lies the problem. There is insufficient equity in the property for me to do both.
Having spoken to my IP about it (when I am able to get hold of them), I was told in no uncertain terms that I am legally bound by the modifications in the Chairman's Report. But the Chairman's report makes no mention about the amount of equity that has to be realised and when it has to be realised. Surely, if these are the legally binding modifications made by the creditors, mention or notes should be made regarding this. Are the mere file notes of a legal and binding nature?
Now, I do realise that to achieve the required p in the £, a lump sum of equity has to be found somewhere and what better place than property. Why the pressure then to achieve this within the 1st year of the IVA? Surely it would be in the best interests of the creditors (and the debtor) to wait until year 4 of the IVA where the property value would perhaps have increased, thereby having more equity to put into the IVA? Should interest rates increase and the mortgage payments become too high, the debtor is once again in a position to sell the property and release the equity that way.
My IP has suggested that I put to them, in writing of course, any variations that I feel to be fair, ie how much equity I am able to release at the sale of my property, how much deposit would I require to purchase another property and what my income and expenditure is at this point in time. Not very easy to do, particularly when the housing market is somewhat slow, you have no real idea of what your property will actually sell for, you cannot make a call on how much you are going to need for a 15% deposit on a property that you cannot look for as your own has not sold! Catch-22!!!!
Far be it for me to sit back and enjoy the comfort of knowing that 59% of my debt is to be "written off". I was the only person responsible for the debt and therefore don't require any reminding of what I did (contrary to what may IP may think).
Having an IVA around your neck for 5 years is stressful enough, but having all that debt around you, quite literally, slowly kills you. This is most certainly not an "easy way out". There is no easy route with this - the "easy" thought is that at least you are able to stand up and admit you have a major problem and you are prepared to do something about it. Slim consolation, but 5 years down the road - who knows!!!
If there is anyone out there with a similar plight, please let me know - and if there is anyone out there who can offer sound advice, I would be very grateful.
Ho Hum!!!! Think I'll bang my drum!!!
Sadsack
