Hung out to dry by IP it seems

[beckym]

Whilst things seemed to be going well with our recent IVA, things dramatically have taken a turn for the worse. After finding out I was pregnant and deciding that we could sell up to clear all debt - mtg, secured loan and IVA, move into rented accomodation we have received some rather poor advise from our IVA company.
When starting with the IVA, we included all our debt, however we have an open plan mtg with the woolwich which had a credit card debt attached amounting to aprox £5k. After mentioning this to our IP it was agreed that this could be added, however after his admition, he forgot.
We received various letters reminding us about the debt and these were forwarded to the IVA company and on various occasions we reminded them that action needed to be taken. These apparently were never received, therefore no action was taken.
We then received a solicitors letter acting on behalf of woolwich threatening us with court proceedings, this we also forwarded to our IP - of which he admitted to 'mispacing'!!
After our IP finally receiving this info of which I faxed over 6 times, we then receive a letter this week advising us of our repossession hearing date of 29th Oct.
We have now been advised by the IP and their solicitors that we are going to have to go to court and explain that the house is on the market and our intention to clear debt upon sale.
May be we were slightly nieve in believing our IP when they initially said it was nothing to worry about, however, now and being 6 months pregnant it seems that we have a hell of a lot to worry about!!!
We also have our F&F meeting 5th Oct, if they do not agree, will we end up loosing everything???

[MelanieGiles]

Hi Becky

Sorry to hear that your IP failed to include this debt in your IVA, despite you notifying them of it several times. But this should not lead to possession proceedings being taken against your house. I assume that you are also behind with the mortgage?

Did you read the IVA documents carefully before signing them, as the proposals are your own and you should have checked the creditor lisiting. Sorry - I don't want you to think I think you have done anything wrong - as when you pay professionals to do a job they should do this to the best of their ability - but we are all human and occasionally make the odd mistake. This should serve to show other posters contemplating entering into IVA proceedings, to carefully check over the documents before proceeding.

What your IP ought to be now doing is seeking the creditor's agreement to join into the IVA proceedings on the basis of honest omission. The missing creditor can then join in the proceedings if it so wishes and receive a dividend of the same proportion as your other creditors.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[beckym]

The sad thing is is that we have never been in arrears with the mtg, it is always paid in full and on time.
I noticed after signing and sending ifo back, however called IP as soon as I noticed it missing and was told that they would amend the creditors listing, however this obviously never happened

[jpj]

I have a Woolwich open plan mortgage with current account. What they dont readily explain to you is that all the overdraft facility and borrowing on your open plan current account is actually secured against your home!! It is a secured debt!
I suggest you double check that the reason it was never included is cause it was secured on your property.
My openplan account was 2k overdrawn when I entered my IVA, the sum could not be included but my IP managed to get the Woolwich to allow me to pay it off over 5 years at £28 a month.
It still does not excuse the terrible way your IP has treated you !
[:(!] hope things work out for you.

[MelanieGiles]

So is this debt secured or unsecured? If it is secured it could not have been included in the IVA in the first place.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[beckym]

After me phoning the Woolwich yesterday I found out that it was actually a secured debt. However, surely my IP should have done this or if not had the knowledge to have known this in the first place, as I have previously arranged with the woolwich to make additional payments to my mtg to clear the debt, however it was the IP who told me not to as it could be added to IVA - therefore additional payments were not made under my IP's advise

[jpj]

I think Andy told you the other day that once your Full and final is agreed the figure lasts for up to 12 months and you stop paying monthly contributions.
Not sure how much you pay a month but cant you agree to give that to the Woolwich each month to start paying the debt until your house sells?..just a thought!

[beckym]

Good idea, problem being, our mtg is due to increase by a further £180 a month as we come to the end of our term in a couple of weeks and due to this situation they can not put us on a lower interest rate, so the monies we did pay through IVA will be going to pay the addition cost of the mtg thanks to this issue that has now arised.
Thanks for your advise/idea though

[jpj]

Oh Becky..it never rains but it pours!! hope your house sells quickly..if not stick it on the internet privately too for a couple of hundred qwid fee..that might save you 3 grand in agents fees! )

[Adam Davies]

Hi Becky
This is a secured debt and will not affect the voting in your full and final.However you will need to agree to a repayment plan with the Woolwich to stop a repossession.Your IP[or I guess his/her staff]have given you poor advice.

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

[beckym]

The trouble is we do not have any spare income to be able to pay anymore, we are already going to have to pay an additional £180 that we do not have on our mtg due to them not being able to put us on a short term rate due to the solicitors order.
My other worry is that I have little or no faith in our IP re these problems and am only praying that the creditors agree a F&F other wise we are truely stuffed!!

[mikebdomain]

Hi beckym

The Woolwich open plan mortgage product is all secured.

Make sure you attend the repossession hearing if one has been arranged, we have a lot of experience in dealing with ‘repossession stops’ and always find that the judge is willing to listen reason.

The situation you find yourself in is unfortunate and not all due to your actions, the judge will more than likely be sympathetic to your circumstances, but you must be able to offer a slight overpayment (any small amount) for him to be able to offer any extension.

Even with an offer of £5 extra a month we were recently successful in obtaining a 64 day extension, so our client could remortgage (it cost him £10).

All I would say is take all the details to court with you on the day, with a full breakdown of your income and outgoings and explain that you do not wish to make an offer of overpayment that is not realistic.


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[beckym]

Excuse me being dim, I just want to get this clear in my head...
If a F&F is agreed am I right in saying that no further IVA payments need to be made until F&F settle?
If this is the case that would free some cash for the mtg meeting at the end of Oct

[jpj]

Thats right Beckym (check out Andys posts on your question "full and final meeting pending") once the figure is agreed it lasts for up to about 12 months and you stop your IVA payments so you can pay the mortgage instead!! yippee.

[beckym]

There seems to be a glimmer of light at the end of this huge tunnel at last it would seem!!!
With a bit of luck, if all goes well at the F&F meeting and they agree on Oct 5th and if we are lucky enough to maybe get an offer on our house by the reposs meeting at the end of Oct we may be debt free hassle free, moved into rented, so house free but another baby!!!! (by Christmas/New Year)