I would appreciate your comments please

[tina]

Hi I have been in an IVA for 18 months now and have not been able to pay every month. I am now two months behind in my mortgage, I am single parent and have just been laid off work. I can't afford the payments to the iva anymore, I have paid nearly £3,000 into it only to find none will got to the creditors that has all gone to the IP!! The IP told me that if I don't pay then the IVA will be failed and the creditors will then start chasing me for the money again, I feel declaring myself bankrupt would be a better option. Can an IVA monthly payment be reduced?

I would appreciate your comments please, thank you.

[lizziej]

In my IVA arrangements my IP has the ability to reduce my payments by up to 15% - however it may extend the term of the IVA for a further 12 months!Talk to your IP again, although it sounds like financially you may be better going bankrupt.

[jpj]

It depends if you have any equity in your property?...if you have it could be worth offering a full and final IVA settlement,explaining your circumstances to your IP and putting your house on the market(.either way you are going to have to give your house up wether your IVA fails or if you go bankcrupt.) ...just a thought![:)]

[mikebdomain]

Hi Tina and welcome to the forum,

You must keep up payments on your mortgage, or else your mortgage provider will seek a repossession order through the courts. Contact your provider and offer a small overpayment on your mortgage until the two months are made up.

Could you please post some more information regarding your situation
e.g.
- whether you may have any equity in your property,
- whether your mortgage is interest only or repayment,
- how long have you had your mortgage,
- what your outstanding debts are,
- how long have you been in the IVA.

With the above information the experts will be able to give you more advice.


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[tina]

Hi everyone thank you for your advice, what is the process of the IP failing the IVA could anyone tell me please and how long the process takes? Is it true they inform the creditors and the creditors then chase me, can the IP declare me bankrupt or is it up to me or the creditor to do that?

Thank you for your advice muchly appreciated.

[tina]

Hi there, another question for some advice please, what if I sold my house and then declared myself bankrupt? There would not be enough equity to do lump sum settlement for the amount the IP wants. That way I wouldn't lose my house I would of sold it.

Thank you everyone.

[pippa]

Tina

if you have a lump sum left over from the sale of the property this would need to be paid to the OR for the BR estate.
How much equity do you have?

Pippa

[MelanieGiles]

Hi Tina

Usually once you have missed three IVA payments, your IVA enters into default and your Supervisor ought to serve you with a Certificate of Non-Compliance demanding that the arrears be brought up to date, or a sensible offer of variation, made within 28 days from the date of service.

If you do not comply with the Certificate, then the Supervisor will bring the IVA to a conclusion on grounds of its failure, which may result in him petitioning for your bankruptcy - but this will only occur if he is in funds to do so and the terms of the proposal instruct him in such manner.

Once the IVA has concluded, then creditors are free to commence collection action against you. If you genuinely cannot afford to continue IVA payments, and are mindful to sell your house in any case, it would be sensible to try and make an offer of full and final settlement to the Supervisor on grounds that there is no better deal to be had in bankruptcy.

If the Supervisor refuses to put this forward for you, remind him that it is your prerogative to be entitled to seek creditors approval to a variation and not his/hers.

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

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