Here is my story

[MelanieGiles]

How much is your house worth, and how much does your IP charge each year? How much are your monthly payments into the IVA, and how much do you realistically thing you can afford to pay?

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

[Bob]

Sorry Melanie, I was bound to leave some minor detail out!!! House was valued in Sept. 04 at £180K at a guestimate I suppose now it would realise £200 -£210k but does need about 20k work done on it. In his annual report in Feb 2007 the IP said that he has not drawn any fees on account - so I assume it it a settlement at the end. I pay £500 per month but did miss one payment which I have yet to catch up on. Some months I struggle to pay that amount and of course it would be more comfortable if it was less. However, once I have obtained additional professional qualifications , next month if I am successful in my exams on next Monday, then my work situation should improve, making the £500 acceptable, but still a struggle.

[MelanieGiles]

OK Bob - this is how I see your case - but do bear in mind that I am just one of the experts on the forum and others may have differing opinions. Also, you much consult with your own IP as he/she has detailed knowledge of your case, which I do not have to hand.

You are halfway through a five year IVA, and struggling to make your payments but expecting a pay-rise shortly. Why not ask your IP if you could reduce your payments temporarily for the next three months to say £300 until you get back on your feet. (Good luck with the exams by the way!)

With regard to the property, you have pledged to raise your share of the equity, which at the moment I would calculate at approximately £20,000 after allowance for notional costs of sale. I do not think that you will have any problem raising that sort of money on a re-mortgage, when the time is right. Many clients of mine have done this very successfully, regardless of their ages, and once the IVA has completed you will have than £500 extra to meet the increased mortgage costs.

Being three years in to an IVA, I would certainly not advise you to go bankrupt at this stage, as your equity would be lost to the bankruptcy and you would probably still have to make contribututions for the next three years.

Although your case has a nasty history, I do not feel that your IVA - or you personally - are in any sort of jeopardy at the moment. I am glad that you are finding the forum useful, and please continue to post if you need any further assistance. We can also recommend a good mortgage broker to you as well.

It would also be really helpful if you could reproduce exactly the wording with regard to the property equity on the forum for more definitive advice.

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

[Bob]

Thanks Melanie, someone else remarked earlier how quick you were - boy they're not wrong. Exact wording of the Modifications to Proposals : "That the debtors freehold property at .......... be professionally valued and 100% of the debtors share of any equity be realised for the benefit of creditors."

regards
Bob

[MelanieGiles]

Hi Bob - this doesn't confirm when this is to happen. Read more please .......!!

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

[Bob]

Hi all, it has occurred to me that I might have given the wrong impression regarding my blood pressure treatment. I do take my medication daily as prescribed so please do not worry on that score. I was merely trying to illustrate that the cost of affording prescriptions is not helpful in the circumstances. Sorry for misleading you but thanks for your concerns - its so nice to see.
Thank you
Bob.

[Bob]

Melanie, that's all it says. There is no date. Neither does it say anything about a time scale in the IP annual report. in that document he says that he has registered a restriction in the Proprietor Register of title of the property......to protect the creditor's interest in the property UNIL SUCH TIME THAT THE DEBTOR'S SHARE OF ANY EQUITY IN THE PROPERY IS BROUGHT NTO THE ARRANGEMENT" Does this help?
Bob

[MelanieGiles]

Bob - I'm going to sign off for tonight, but it strikes me that the creditor has put no time limit on this equity raising. So, why don't you think about offering an early settlement now - to bring in your share of the equity of £20,000 and a contribution from your wife's share of say £12,000 in lieu of future contributions. Obviously this will result in higher mortgage payments - I reckon about £200, but will leave you with the rest of the money intact - and assist with your ongoing cashflow (although I am sure Mrs Bob will want you to repay her!)

Just a thought - but perhaps one you had not thought of. Raising the money will not be a problem, and you could put all this stress and worry behind you for good - whilst giving your creditors a much earlier repayment, so everyone wins.

I'll be around tomorrow so do keep posting.

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

[Bob]

Melanie, Thanks for that and for staying up so late to help. I will today write to my IPseeking his permission to remortgage and asking his advice on what settlement figure would be acceptable - to guage his feelings on the matter.
In the meanwhile, it would be interesting if the other forum experts had any additional or different views. I will also today try to contact 'Welsh Boy' whom I know you recommend for mortgage advice.

Regards
Bob

[aguise]

Hi bob just wanted to say Melanies advice is always spot on. I'm no good with mortgages etc never had one, but all the very best with your offer and keep posting to let us know and others how you get on.

Ang

[Bob]

Hi again to all, Sorry if i seem to have disappeared but really I am still waiting for a reply from my supervisor re re-mortgage and likely settlement amount. It's been three weeks now - such great customer care eh!
In the meanwhile Welsh Boy has been working on my behalf and has found a potentialy good deal on a re-mortgage for me so it's not all bad news.
The next big problem I have is how to set up a new Business account so that I can run my business as a free lance trainer. It makes it so difficult to re-establish yourself once in an IVA as the banks simply won't entertain a new account. Even the Building Society I have my personal account with (With no problems) won't allow me to open a further account for business. Any one got any ideas?
thanks
Bob

[Adam Davies]

Hi Bob
This is an area that we have yet to find a solution to.All Business accounts seem to be credit scored,theres a good market out there for a company to offer business accounts the way Think Banking have for personal accounts.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Bob]

In the meanwhile, does anyone know where I might get a sympathetic hearing with some prospect of opening an account - notwithstanding the credit history. I will not be loking for credit from them.
Bob

[Bob]

Is it me? Am I extremly naive? or am I just thick?
For some reason I thought that if I attempted to raise funds by means of Re-mortgage, I might be able to suggest a full and final settlement figure that might have been somewhat lower than the total amount than if the IVA ran it's full course.
Today I have had my long awaited reply from my IP. He says that If I wish to settle early, it will cost me £15000 - the amount left from ny monthly repayments up to the end of the IVA term plus all of my equity from the house.
So, what's the incentive to finish off early? - peace of mind - yes and I suppose a lower figure on the equity given that the house price might increase by end of year 5.
Some where along the line I imagined (or did I?)that to settle early, the creditors would get the majority of their due and could write the remainder off against tax and that I could shake off the burden at slightly reduced cost Win/Win. Where did I go wrong?
Bob

[MelanieGiles]

There ought to be a reduction in fees, if nothing else. Have you asked your IP to give you a breakdown of the £15,000?



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