I could be in danger of losing my home

[desperateneed]

I now have my original proposal and the modification details and will post them to this site shortly; in the meantime, can anyone recommend a reputable lender who my husband can obtain a personal loan from? Thanks to my parents we have managed to obtain £10k and are trying to find another £10k in order to 'pay-off' the IP and end the IVA. Once they are history, we intend to buy the other 50% share of the property from the housing association and mortgage for a further £20k to pay my parents and any other loan we may be fortunate to obtain. The mortgage outstanding is £23k and has recently been valued (by the IP) at £120k, therefore our share to buy out the housing association would be £60k. Unfortunatley, my husband also has a poor credit rating but is not attached to my IVA whatsoever.

[MelanieGiles]

You have to fight this point before you hand the money over. First of all let's see what the proposal and creditor modification actually requires you to do.

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

[desperateneed]

OR, can anyone suggest a reputable lender that would allow us to buy the other 50% now, and then remortgage to pay off the IVA?

OR, should I offer the £10k to the IVA via a creditors meeting?

As you can see, I am desperate not to be made homeless through these 'sharks' - I will deal with them once I can secure my abode!

Standby for the original proposal and the modifications, just typing them up ...

[desperateneed]

Hi Melanie, here goes ...

My original proposal (drawn up on 16 August 2003) was that my property was not included in the IVA:

3.2 I live with my partner, who makes a contribution towards the household expenses, in my mortgaged property owned 50% with X Housing Association. I intend to maintain the agreed monthly payments to Nationwide Building Society in order to discharge this mortgage in full. I intend to maintain the agreed rental payments to X Housing Association. I have a life policy, with no surrender value, linked to my mortgage. My only other asset other than my household effects is a motor vehicle (see schedule D) which essential in order that I can go to work. I do not wish to include any of these assets or any benefits arising from them in my arrangement.

3.4 In addition, I propose to make a further twelve payments of £230.00 into my arrangement in order to compensate my creditors for my desire to exclude the property known as (Address) from my offer of repayment. It is my belief that I would not be able to re-mortgage due to my financial situation and the likelihood of the creditors receiving more than this offer in bankruptcy is remote.

On the day of my meeting with IP I was told that the majority of my creditors were in approval but only with a modification that my property should be included in the arrangement and thus remortgaged in year four of the arrangement.

The modification in the Chairman’s Report:

“In the fourth year of the Arrangement, an open market value of the property must be provided to the Supervisor together with a mortgage redemption figure. The debtor must obtain a minimum of 2 formal offers or re-mortgage and provide documentary evidence of each to the Supervisor. The debtor must accept the offer which provides the greatest return to the creditors and 100% of the debtor’s share of such proceeds must immediately be paid into the arrangement. Monthly contributions may then cease in order to accommodate an increase in mortgage payments and the Supervisor may take steps to conclude the Arrangement having first written to creditors to ensure there are no objections to the IVA being completed early. Should the debtor be unable to realise his equity in the above manner, the Supervisor must convene a general meeting of creditors to consider the debtor’s proposed alternative.”


I have also found a copy of a letter from my IP sent to my parents, as I also owed them £2k and I had originally asked them to be included in the IVA.

11 August 2003

Dear X

Re: (my name) meeting of creditors 11 August 2003 at 1100 hours (it was actually 1200 hours)

At the meeting of creditors today, a modification was proposed which excludes associate creditors from receiving a dividend from the Arrangement.

I should be grateful if you would sign and return the attached letter as your agreement to stand aside for dividend purposes in accordance with the modifications, which reads:

“Associated creditor claims shall be treated as deferred and only rank for dividend once unsecured creditors claims have been paid in full, together with interest”.

Enclosed a pre-paid envelope for your response.

My parents obviously signed this, but due to the date they would not have received the letter until the earliest the 12 August and if they signed sent by return of post, the earliest this would have been received in the IPs office would have been the 13th or 14th August. Without receiving this would the IVA been able to have been agreed?

I cannot find anything in writing, apart from the modification in the Chairman’s Report, that asked me to sign to agree the inclusion of my property. I cannot confirm that I did not sign a letter of this nature, however, the modification was only mentioned to me on 11 August 2003 at the same time that I was to sign for the IVA. I appreciate that they will not take into consideration the emotional distress at the time, but should they have provided me with a similar letter, and if so, should I now ask for a copy?

Apologies for repeating myself, but I did stress at the time that I had grave concerns that I would not be able to meet this new proposal as my house was co-owned with a Housing Association; however, an arm was placed around my shoulder and I was assured (obviously this is now hearsay) that everything would be okay, and that they had companies that would be able to help me when the time came to remortgage – I signed, and the rest is history!!!

[catullus]

Hello desparateneed.

I must be missing something. I can't see anywhere in the mod a requirement to sell the property.

You do have an obligation to attempt to remortage but in the event that you are unsuccesful in doing so the supervisor now has to convene a further meeting meeting of creditors and make recommendations as to how the IVA could be varied fairly to both sides.

Bearing in mind that the IP first drafted the proposal to exclude the property and for you to make 12 extra payments in compensation to creditors it is logical that he should stick with this, given that the creditors mod has proved to be unworkable.

I think that this can be further justified on the grounds that, were you to be made bankrupt, it is highly unlikely that the creditors would secure a significant return to creditors because of the legal complexities between the building society, the housing association and the need to get possession.

I am. of course assuming that no such variation meeting has yet been held and, if so, for the life of me I can't understand why your solicitor considers that you must comply with the supervisors decision.

I will be interested to see what Melanie says.

[MelanieGiles]

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.

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

[desperateneed]

Dear Melanie and Catullus, thanks so much for your replies it they have certainly put me in a better frame of mind, especially since I have at last received a response from my IP, and I quote ...

"Do you want us the revert back to your creditors in respect of exteding to term of the arrangement in lieu of equity monies? Please note that £20k was mentioned to you to offer the creditors 100% of the debt, but we can revert back to your creditors for a full and final with a lower figure. Selling your prpoerty would only be a last resort after all the other available options have been looked at, unless it is your wish to do so".

Don't know about you, but this seems to be something of a u-turna and a definate change of attitude on the IPs part. I wonder if it because they know I have sought (and received) expert advise from independent IVA professionals?

I will now formally ask them for my creditors to be approached to propose that I continue to make payments for a further 2-years. May I use some of your wording? I will not disclose your identities but would (once again) very much appreciate your advice and input before making this very scary step.

[MelanieGiles]

No - instruct them to seek the agreement of creditors that the IVA be concluded at the end of the fifth year, on the basis that you cannot raise equity. I do not believe that you need to pay over any more monies - but if pushed you could agree to extending for one additional year.

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

[desperateneed]

Thank you so much Melanie! I know that the wording of such a request will make all the difference. I will visit your link ... once again, thank-you.

[Adam Davies]

Hi
Well it sounds promising for you and what a u turn !!
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

[desperateneed]

Amazing isn't it? What a difference expert advice makes!

This forum has been nothing but a blessing. I know I am no way 'home (no pun intended) and dry, by no means, but I am so grateful to everyone who has supported me and contributed their invaluable advice.

I sincerely hope this gives others some faith and hope when dealing with IPs who are ivasive and use bully-boy tactics.

I know I would never have got even this far without you lot!

A mere 'thank-you' seems so inappropriate but once again ... thank-you.

Will keep you updated ...

[catullus]

Glad that the mist seems to be lifting.

I agree with Melanie that you should go for a conclusion after 5 years but, if declined, you could offer 6 months before you immediately go to 12.

Just another option for you.

Best of luck!!

[desperateneed]

Hello everybody, I won't bore you with this whole saga, but I first contacted this forum on 31 August as I couldn't re-mortgage my 50% co-owned (with housing association) property. As you can see I received loads of support and advice ... however, 8 weeks ago today I sent my IP a letter of 'concern' regarding the poor customer service and advice I had received, together with a proposal to present to my creditors. I did receive a letter of acknowledgment and a complaints officer has called me; I have also submitting an income and expenditure form - and I am still waiting!!! Year-4 of my agreement was back in August. I am absolutley fuming and want to know at what point to I take this to the regulating body? All advice greatly received.

[MelanieGiles]

You can make a complaint to the IP's regulatory body at any time, and this will have more credibility if you can demonstrate that you have tried to use the IP's own complaints channels and even those have let you down.

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