i have several debts in my mothers name

[donna2]

i have several debts in my mothers name but she is a homeowner. Have you any suggestions on how i can lower my payments with my mother? she is not able to help me. also i would like some advice on an IVA please. I am already on a Debt Management Plan but this is only temporary

[Adrian Ratcliffe]

Hi Donna,
When you say you have several debts in your mothers name are they secured debts or unsecured debts?
The IVA would need security in the form of a charge, so this would put your mothers property on the line if the IVA failed.
Please put an amount and some figures together as advisors on the forum will be able to give you the correct information to your questions.

Regards
Adrian

[MelanieGiles]

Sorry Donna - I don't understand the point about debts in your mother's name. Has your mother taken out loans for you in her own name which you are now repaying? If so, then these remain in her name and she is responsible for the payments, but of course you are in turn indebted to your mother.

if my assumption is correct, could you confirm how much you owe your mother and how much you owe to other creditors - also what are the amounts you are paying to the DMP and your mother each month.

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

[Adam Davies]

Hi
Just to clarify
There is no charge put on a property during an IVA,however there is often a clause in the IVAs t+c that you are required to surrender some of your equity in the final year.As your mother owns the property and you do not then your Mothers house will not be at risk if you enter into an IVA.
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

[Debt Monkey]

I also pay money to my mother on a monthly basis as she took out a loan. When I took out my IVA the company did not include this on my propsal and got my income and expenditure all wrong. My IVA was accepted but I have just had my annual review and now they are telling me my payments have increased by almost 100%. My income is higher than on the initial proposal as they got it wrong, is there anything I can do. I did not include the £25,000 loan my mum took out in my proposal as she can not afford to repay it herself. Any info would be greatly appreciated.

DM

[MelanieGiles]

Difficult to advise after the event. The loan you owe to your mother should have been included in your IVA - was this excluded on the advice of your IP, or did you just not tell them about it. How have you been making the payments to your mother? These will have to stop, as you are preferring your mother over the other creditors, she is an associated creditor and preferences are offences under the Insolvency legislation. Is this happening with your IP's knowledge. Sorry to be the bearer of bad news, but I have to give you proper advice here.

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

[Debt Monkey]

I did mention it to them initially but when I said the proposal was all wrong they said dont worry. Now a year down the line the payments are set to sky rocket and I am going to struggle or not be able to pay my mum in which case she will end up with an IVA, son of the year or what! Any advise then, my 1 year review should come in the post tomorrow and I intend to give my IP a call and see what we can do but it sounds pretty unlikley I can get a reduction and continue to pay what I owe my mum. Oh dear!

DM

[MelanieGiles]

So your IP has assisted you in making a material misdeclaration of your financial circumstances? I am still unclear as to how you have been paying your mother, when your disposable income should have been properly declared to creditors at the outset of the IVA, and you ought to be paying your full disposable income to the creditors? How much are you paying your mother each month?


I feel dreadfully sorry for you, as you put your trust in members of my profession and you are left with this dilemma. I don't really feel that I can advise you further on this point, apart from to say that you ought to stop paying your mother, and see if your IP is prepared to put forward a variation to your creditors including the debt to her on the basis that it was left out by mistake. Your mother can then receive dividend payments alongside the other creditors.

I acknowledge that this may cause her financial difficulties, but that is no excuse for hiding the fact that she is owed money and preferring her debt at the expense of the other creditors. Interested to see what your IP has to advise re this issue. Is your mother aware that you are in an IVA?

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

[Debt Monkey]

Yes my mum knows all about the IVA, the repayment on the loan is £278 a month, shortly after starting the IVA I changed jobs which resulted in a higher salary so I could manage to pay her by cutting right back on everything else, dont think I have been out more than once or twice in the past year! The initial proposal was horribly understated in terms of both income and expenditure so I felt that the payment was probably reasonable in that I could afford it but I guess as you say if I can afford to pay my mum then it is probably to low. How often would my mum get a dividend from the IVA? If my IP was to try and include her could they include the debt as £278x120 payments i.e, £33,360 or just the £25,000 original loan amount. I will dig out a copy of the original letter I sent to the IP when they messed up my proposal and add more details tomorrow.

DM

[MelanieGiles]

Your mum would need to submit a claim against you, so I suggest she finds out how much she owes to the loan company, and submits a claim for a similar amount in your IVA. You must, however, speak to your own IP about this - as they will have a far better knowledge of your case and individual circumstances than can be posted on the forum.

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

[Debt Monkey]

Thank you for your advice! I will keep you informed in case you are interested!

DM

[zoe]

Hi there
Did your IP not ask for your wage slips on a regular basis, I thought you had to show them every 3 months - If this had been done your IP should have noted the change in income?


Zoe
x
Keep your chin up - everything happens for a reason!
View my blog http://zoes.blogs.iva.co.uk/

[Debt Monkey]

No, to be honest I can not remember sending my pay slips to start with but I guess I must of done, just sent them in after 1 year for my first year review. They told me the review was done on the 12th of June and the paperwork was sent back on 21st, its now the 28th but I have not received anything yet, what are they up to? The revised figure they told me I would have to pay seemed really unreasonable, is there any way to negotiate this at this stage or does what they say goes? Will they tell my creditors what my payments will change to based on my current circumstances before I have had a chance to review their calculations?

DM

[MelanieGiles]

If you feel that you cannot afford the payments, you will need to tell your IP this and negotiate. Which areas of expenditure do they feel that you should economise on?

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

[Debt Monkey]

NOt sure yet as I have not had the paperwork back, I did notice though that he included my salay as the amount I received in the last month of the 3 months wages I sent in. This particular wage slip included a reimbursement of £50 worth of expenses which they seem to have included as my income, surely that can not be right as it is by no means guaranteed each month?

DM