exhausted from the strain and extra work

[tiredandy]

I am nearly two years into my IVA, my initial debt was around £51000, the repayments thru the IVA total around £21000 over six years, 72 months @ 296. The extra year is being used to buy the equity in the house, insread of a bulk payment in fourth year.

I am now exhausted from the strain and extra work required to meet the monthly payment and I am seriously thinking of selling up and moving into rented accomadation.

My query is, since house prices here have doubled since the IVA was setup two years ago, if I sell my house, clear mortgage, I may be left with around £60000 (hopefully!) Would the IVA company, Grant Thornton, and the creditors be looking to reclaim all of the initail debt of 51000 less payments made, or would they accept an increased divindend, currently at around 27p in the pound?

I don't really want to walk away with just £10000 afer all this stress, I would be happier to struggle on for another four years.

Thanks

Andy

[MelanieGiles]

Hi tiredandy and welcome to the forum

Your house was specifically excluded from the IVA in lieu of your additional year's contributions, so it is yours to do what you want with. I suggest that you make them an offer based upon the original dividend, perhaps increasing it to 30p in the £ as a gesture of goodwill, and I am sure that they will put this forward for you.

Let us know how you get on in due course.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

Hi,

Thanks for replying.

I have just spoken to Grant Thornton representative, and after she looked at my file I explained that I would be in a position to offer a full and final by means of selling house.

Shw however said that i would be obligated to pay the full amount outstanding, approx £45000, to the creditors if equity from house was more than that, I did not mention an offer of 30p in the pound, she is talking about 100p in the pound full stop. she said fees would be recalculated as necessary. She said a 100p payment twould mean the case would be settled quickly, otherwise it would take a bit longer to clear up.

How do i stand here?

Thanks

Andy

[Sadsack]

I have just re-read Mel's original response to your question. I would have thought that as your property was not included in the IVA, then you have no OBLIGATION to hand over the readies! I would suggest that you make a counter offer, perhaps a bit more than 30p to make it a bit more tantalizing. You would obviously want to purchase another property, and the norm is for you to have a 15% deposit.
May I suggest you once again go back to your IP and put various proposals to them (better if its in writing) stressing which of them is your most favourable.
Hopefully Mel will be along later to give sound advice.

Sue

Ho Hum! Think I'll bang my drum!

[tiredandy]

Thanks for advice, will look forward to Melaine's response .

Andy

[tiredandy]

Hi all,

Having read thru the IVA proposal I can confirm that under the heading

EXCLUDED ASSETS
is
Matrimonial Home and Vehicle,

yet under Statement of Affairs section 1.9 states

No property other than my own is to be included in the IVA.

Andy

[MelanieGiles]

I definately do not agree with your IP's member of staff and suggest that you speak to the IP directly in this regard.

Your property was specifically excluded, and no longer forms part of the IVA. The other point ref 1.9 is irrelevant. This just means that no third party was giving you any money to inject into your IVA.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

thanks Melanie,

Would it be the IVA supervisor I would need to speak to?

[MelanieGiles]

Yes - I assume that your supervisor is Mark Allen. He is an excellent insolvency practitioner - very commercial and practical - and I am sure that you will have a sensible discussion. Rest assured he will give you a solution that he thinks will be acceptable to your creditors based upon the facts of your case.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

hi,

its actually Gareth Neill who is looking after my case, will speak to him on Friday, as I am working from 6:30 this morning to midnight to pay for this IVA!!!!!

Thanks

Andy (yawn!)

[MelanieGiles]

Hi again

Garath is an equally excellent practitioner, and I am sure that you will have no problem in putting your case forward.

Let us kno how you get on.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

Hi Melanie,

Gareth is a hard man to get hold of, I spoke to the man dealing with my caae.

He still insists that any excess equity would have to be paid to debtors.

His reasoning behind this is that the 12 months extra payments which excluded the house would be not be valid as the house is sold, and therefore this clause does not stand.

Any ideas?

Thanks, Andy

[Adam Davies]

Hi
I think the secret here is to get a variation meeting approved by your creditors agreeing to a lump sum giving a 35p dividend from the sale of your house,BEFORE you sell up.
If they do not agree they will get less than 30p and have to wait another 4 years for it.
Good Luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

Sorry - I don't agree with them on this occasion. Your house was excluded from the IVA and that is a matter of fact. Also it is your variation, not theirs, so ask them politely to put forward the settlement you choose to offer.

Could you also list your creditors for me, as this firm also represent a number of the main banks.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tiredandy]

Here you go:

Abbey
Bank Of Scotland
Choice
Barclaycard
Morgan Stanley
marks & Spencer
MBNA
Alliance & Leicester
Intelligent Finance

Andy