We are in our last year of our IVA (we have one each) which finishes in August. We are a little concerned as we have had an email saying that the house will have to be re mortgaged or sold to pay the remaining debt, 100p in the pound on my partners IVA and £0.88 in the pound for us.
We were aware about the re-mortgage, but not the bit about having to sell the house. If this had been the case we would have gone bankrupt at the beginning.
We know that we are not going to be in a position to re mortgage, so where does this leave us. Is there anyone that we could go to (other than our practitioner) that could go through our agreement and help us out. We have quite a few issues with our practitioner but are scared to upset the apple cart.
We are now very scared that we will lose the house.
It is a little unusual for them to want you to sell your house.
Have you checked your proposal/chairmans report to see what it says?
Which company are you with?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Not yet, going to dig it out tomorrow. but the email I had from the today says that either re mortgage or sell the house. The Company is Jeremy Knight in Brighton
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have just dug out our proposals and found it does state that "our house will be sold or re-mortgaged by the end of year five at which time sufficient funds will be raised"
It does sound as though they expect you to do this but I would speak to them to see if a compromise can be reached - i.e an extra 12 months in lieu of equity. You are paying back a good dividend by the sounds of it and it would be a shame for this to happen.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This will require a variation but ultimately it will be creditors who decide. If you have achieved close to original dividend and there is not much equity it would be easier to convince them of an extension rather than if you have not achieved a high dividend and there is substantial equity in the property.
You will need to get an up to date redemption statement and house valuation which can then be shown to creditors. Hopefully they will agree to an extension but they could insist on a sale.
Hi Thanks for all your advise, I have worked out that there is 17% (approx £35k) equity in our property, so we will not really be in a position to re-mortgage. I am paying 0.88 in the pound and my partner is paying back £1.00 in the pound. Our IVA is due to finish on the 8th August. When do we need to be looking at talking to the creditors and asking if we can extend our IVA. We owe approx £24000 based on the agreement.
We have to admit that we are not finding our insolvency practitioner not very helpful.
Personally I think you are both paying back an excellent dividend, much higher than mine.
I would be pestering your IVA provider now and asking them to put this variation option to the creditors.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Having spoken to out IP he said to do nothing until 3 months prior to the end of the IVA. I then asked him if he could roughly tell me how much we would have to pay back. And to say I was astounded and nearly fell over is an understatement. Our initial joint debt was just over £51000 some how this has now jumped up to £63000! and then they have added £8700 each (£17400 combined)to the amount we owe, this takes us way over the initial amount we owed in the first place! What can we do? there is no way on god earth we would have entered in to this if we knew this was the case! Help?
That doesn't sound good Alan - hopefully one of the experts can help.#
You should never pay back more than you owed in total plus fees and statutory interest.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
sorry need to point out the £17400 is the fees they have added. But we were led to believe that these would be met by the creditors. We are both at so very stressed out over the whole thing now, we don't know which way to turn.
They are also saying "
"We have also attached an estimated breakdowns of the amount required to implement your Arrangements as at 24th January, which were discussed yesterday. There is a considerable shortfall in each case due to the difference in the total amount claimed by your creditors and the lower amounts shown in your statement of affairs, the costs of the Arrangements."
It just seems like we are hitting our head against a brick wall. None of this was explained to us in great depth, we were led to believe that all costs were to be paid by the creditors. We are also of the belief that some of the creditors have tried it on saying we owe more than we did originally, we could understand a difference of a couple of hundred quid, but £12000?
We are now both at the point of breaking and really don't know which way to turn?
