Do you have to complete an extra year of your IVA if you cannot access equity ?

[Chunky]

Do you have to complete an extra year of your IVA if you cannot access equity through remortgage? Are there reasons in which this can be changed and the IVA finalised?

Reason being is I'm wheelchair bound and desperately want access to a motability car as I use an electric wheelchair full time now, but I've never been able to afford it due to being in an IVA.

I wasn't contacted during my 54th month, but was emailed saying my IVA was coming to an end and was asked to complete a final yearly review. My 60th payment was taken end of Sep and got my final review in Oct (which did mention an extra year but gave no details or info). It was this May some 7 months later in which I received a letter saying they've now suddenly set up a new DD and want a further 9 payments

It's been very distressing and to be honest either on the phone or via email my IP's CS team aren't being clear or helpful and I'm not sure what (if any) my options are?

I appreciate any info you can offer!

[Shining]

Hi, why not explain to them your circumstances, it's a pity the payments weren't set up and taken last October when it was recognised about the equity as by now it would almost be over.

First time I've heard of 9 months extra to pay too.

Hang in there, someone will be along soon to offer some advice.

[kallis3]

With motability, if you are getting the higher rate mobility part of the DLA then you should be able to get a car through them.

If someone could fund the upfront payment for you, then you could have one and all of your expenses other than fuel are paid for.

[Chunky]

hi lesley_

Yea I explained in an email which they flatly ignored in their response, nor to be honest have they apologised for the huge gap in-between payments nor have they explained why I wasn't contacted in the 54th month or promptly informed at the end of my iva what was to happen next...

hi kallis3

i've always been on the higher rate mobility, but at the initial interview to go into a IVA I was advised I couldn't have both, it would mean roughly £220 out of my 'income' thus not leaving enough to satisfy an IVA (about £200pm), so I was asked which do I find more important - securing my debt & safeguarding my home or having a motability car. I decided on the former obviously.

----

I asked for my complaint to go to the ceo, but the CS flatly ignored that and gave me another cold copy/paste response.

I'm not sure what to do, I struggle to talk on the phone but these 2 emails thus far haven't resolved anything (nor explained their lack of communication or even offered an apology), it's left me feeling pretty lost and upset.

[Adam Davies]

Hi

It seems poor service on the part of your IVA company, however my advice is to pay the remaining 9 months so that your IVA can complete and you can then look to get the motability car

Do you have a family member or friend that could offer the remaining payments in one lump sum so that you could conclude your IVA earlier ?

Regards

[kallis3]

It does seem bad - we were able to get Motability whilst in the IVA (hubby is in poor health) and it was never questioned.

[lifenoteasy]

If they refuse to acknowledge the complaint then complain via the insolvency service staring this.

[Lisa Thomas]

Ultimately, even though it sounds like your IP firm has caused you anxiety and have overlooked the equity position you need to comply with the terms of your IVA or you could breach and fail it.

Unless you can prove the equity calculation is wrong and the extension does not apply then I agree you should pay the remaining contributions to conclude the IVA.

You can also consider making a formal complaint about your IPs conduct.

There is the possibility of asking creditors to agree a variation accepting payments to date in F&F (you will need to prove you cant pay the extension) but this will take time also and you might not consider it worthwhile.

[Chunky]

Thank you for the many replies.

I'm going to email them again and say I'm not happy with the response and ask it to be escalated to the CS Manager, hopefully get a more human response!

I will consider complaining to the Insolvency Service regarding their poor communication, having no contact for all those months is not fair, I could've been 2 months away from finishing this sudden request and 2 months away from finally being able to get about instead of being stuck in my home! [:(]

[Lisa Thomas]

best of luck.

[relieved33]

I do appreciate that their communication is poor but please do check your terms and conditions regarding the equity release. Our iva stated that we had to get the valuations done and that we had to submit valuations and mortgage redemption figures. Did you do this? If you did, you should have realised that there was equity and that you were obliged to release or extend or should have calculated no equity so no remortgage or extension.

This is not just specifically aimed at you, but the person in the iva is responsible for it, your IP oversees things. I sent off the figures and then made several calls to ensure I had written confirmation that we had no equity available. You say that it was in your documents in October so what did you do then? If you agreed it was due and have been putting those payments aside, I am sure you could pay off that amount and just have a couple of payments left to make.

If the onus was on you and you failed to submit those figures, you could be in breach. Sorry if it sounds as if I am being harsh but it's a valuable lesson for all to make sure you get things in writing, check the terms regarding your obligations and to save monies due in case it's chased at a later date.

I hope it's resolved for you.

[Foggy]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by relieved33

I do appreciate that their communication is poor but please do check your terms and conditions regarding the equity release. Our iva stated that we had to get the valuations done and that we had to submit valuations and mortgage redemption figures. Did you do this? If you did, you should have realised that there was equity and that you were obliged to release or extend or should have calculated no equity so no remortgage or extension.

This is not just specifically aimed at you, but the person in the iva is responsible for it, your IP oversees things. I sent off the figures and then made several calls to ensure I had written confirmation that we had no equity available. You say that it was in your documents in October so what did you do then? If you agreed it was due and have been putting those payments aside, I am sure you could pay off that amount and just have a couple of payments left to make.

If the onus was on you and you failed to submit those figures, you could be in breach. Sorry if it sounds as if I am being harsh but it's a valuable lesson for all to make sure you get things in writing, check the terms regarding your obligations and to save monies due in case it's chased at a later date.

I hope it's resolved for you.

A very pertinent post by Relieved, Again, not aimed at the OP, but, time and time again we see instances where the debtor has not complied with a term of the arrangement and blames the IP for not picking it up.

I appreciate, having been there, that when you enter an IVA your head is all over the place and things get missed (or, as in my case, in one ear and out the other!). I urge everybody in an IVA, if they have not already done so, to make a cuppa, or two, and sit down and re-read the whole shebang.

At the end of the day, this is YOUR IVA and YOU are in control. Don't let the IP run it -- it is not his or her job. The better you understand it the better you can stand up for yourself and challenge anything your IP might try to impose that isn't in the agreement.

[Lisa Thomas]

I agree but think IPs are aware that very few debtors actually read/understand/remember the detail of their IVAs, especially some 5 years down the line and in our capacity as Supervisors we have a duty to ensure the debtor is sticking to their terms which means chasing them up for outstanding things, such as valuations etc.

[relieved33]

With all due respect Lisa, surely an IP shouldn't accept a proposal if they understand proposals are maybe not read or understood?

Surely there's an ethics code that is followed and companies are obliged to at least believe the proposal has been read and understood! Having been in an iva and understanding the terms, there was no way I would "forget" something as important as equity.

I know it's an emotional time at the start, the end of the road is fast approaching but it's a legal commitment that is overseen by professionals, I guess I may be nieve.

I agree it should be followed through by the IP but I still believe that responsibility for some things lies with the debtor.

[Lisa Thomas]

I'm not sure what you mean by IPs accepting a proposal. Do you mean accept the appointment?

I agree the responsibility does lie with the debtor but if they breach their terms then the Supervisor's responsibility is to notify them of the breach, which is why I can't understand the OPs position of not being told about the 12 month extension for 7 months.