It's as I said last night - standard KPMG modification which just seeks best efforts to raise the money. Your proposal makes it clear that you only part owned the property and would not be in a position to re-mortgage.
These modifications were issued on a blanket basis by creditors at the time you entered into your IVA, probably without much thought as to whether they were appropriate. I remember having discussions with creditors at the time this modification first appeared, as to what would happen in the event of clients not being able to re-mortgage, and was assured that so long as you could show that you had exhausted all efforts this would be fine.
I do not agree with either your IP's stance or your solicitors, and believe that you have a VERY good case for not paying over any additional funds other than that which was provided for in your proposal. The modification does not ask for 100% of the equity but 100% of the net proceeds. The net proceeds in your case are zero because you cannot raise any money - so you have therefore complied with the modification.
I would also question whether you are required to make any additional contributions once you have complied with the modification, but that might be a little cheeky!
I completely concur with Catullus, and he is also an insolvency practitioner in practice. I suggest that you revert to your IP an tell him that you believe you have complied with the modifications and will continue to make payments in accordance with the proposal.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
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