in an IVA but I have had to give up work

[flozza]

I have been in an IVA with DFD for over a year now. Unfortunately I have had to give up work due to surgery and it is indefinately. I have wriiten to my supervisor with evidence of this and a proposal. My mother has offered to get my house refurbised in order to get the maximum sale amount. This would mean that I could pay a lump sum of more than the original 33p to the 100 (around 39p) and I have already paid over £4000 in to the IVA. I have been waiting nearly two weeks to hear from my supervisor to tell me if we can propose this to the creditors. What are the chances of them accepting this, as I am now claiming jobseekers allowance. Please help..
Thank you

[MelanieGiles]

Hi flozza and welcome to the forum

Was your property originally included in the IVA? And how much equity do you feel that you have available in your property. Also, what is the value of your total creditors?

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

[flozza]

Hi Melanie,
I have just had it put on the market for £115,000 after my mother has the work completed (it would be worth far less if not.) My mortgage outstanding is around £80,000 and there will be 4% settlement fees on top.

Creditors claims to date = £75,028.69 after the £4380 I have already paid.
Supervisor has said that the full amount after his fees is £81,720

The original 60 month contributions was £34,320 - supervisor fees leaving the creditors £26,095, @ 33p to the £100.

I have worked out that they would receive around £29,000 plus the £4380 I have already paid to date. I think that would give them a better return, especially as I have no means of paying them anything with my mortgage left to pay and only receiving £258 per month unemployed. They were going to look at me re-mortgaging my property in the fourth year, but if my mother didn't have the work done it would be very little. My only alternative would be bankruptsy and I really don't want to do this should I be able to return to work in the future.

Thank you
Flozza



The property was rented originally and the tenant has left due to buying her own house.

[MelanieGiles]

That sounds like a good proposal to me, and one I would certaintly give serious consideration to putting forwadr if I were your supervisor. But of course I am not, so you will need to discuss this with your own IP directly.

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

[flozza]

Thanks Melanie.

Do you know if the claims to date is the fugure that they work out the pence to the pound, or the full and final settlement? I just worry how long it takes my IVA company o respond to my paperwork. It took them over five months to sort my IVA! Would it take them less time to sort this and do you know if offers such as mine are accepted normally?
Thank you

[MelanieGiles]

Claims to date are the number of claims that they have received from creditors to date. It may be that there are other claims yet to be received, so ask them to give you a full summary. I would not expect your offer to take more than one month to put in front of creditors.

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

[flozza]

HI,

I'm thinking it must be right, as the at the start of the IVA, the toyal amount to claim for was £79,936. So, £4380 from this would give the £75,000 ish figure. Well, all of my fingers are crossed!

Thanks again

[flozza]

Hi again

I have now sent DFD my final mortgae settlement figure and have sent all of the documents requested explaining that I am unable to work sue to my surgery. It has been over 13 days since I have had a response to this and I have called them a few times this week, but I the IP dealing with my case just passed on messages to the person I was originally speking to. Do you think this is because they are still deciding about the proposal? I have sent documents in the past to DFD and they have said they never recieved them (most things I send are by recorded delivery though.) I have also put my house up for sale and have two viewings tomorrow already. What happens if I sell the house before they get back to me?

Please can you advise me...Thank you

[MelanieGiles]

You need to keep perservering to try and speak to the IP. Is there any reason why they are seeking to avoid your calls? Explain to them that this is making you really stressed, and why not e-mail the IP directly using a delivery and read receipt to confirm that he has at least been made aware of your situation.

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

[flozza]

HI Melanie,

I don't actually have the IP's email address. Is there anywhere I could find this out? You are exactly right, I am getting very stressed and it's not helping with my health.

I am just worried that I find a buyer on my house and still don't hear anything. The reason it is on the market for a much higher price than at the end of the IVA, is because my mother is spending lots of money refurbishing.this is to ensure the maximum return for the creditors,rather than bankruptcy due to my change in circumstances. I also had to sign something for my IP saying that he can put something on the land registry to say he has an interest in property should I sell. Does this mean that I won't be able to sell without his permission?
Thank you very much for your advice again.

[MelanieGiles]

Ring them up and ask for it - or post the name of the IP on the forum and I will look it up for you.

The form that you sent to the Land Registry merely gives your IP notice of a sale. It does not stop a sale progressing, but of course if you sell without his permission you will be in breach of your 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

[flozza]

That would be great, thank you Melanie.

His name is Paul George at Debt Free Direct.

As I have already informed him that I have put the house on the market and it sells, is this still in breach of the IVA despite trying to contact them?

[flashingblade]

That is my IP too flozza. And guess what, i havent actually spoke to or met him either. With DFD you are left to deal with people much further down the line, and im not saying they cant do their job, but sometimes you just need to hear it from the horses mouth so to speak. Good luck with them!

[flozza]

Hi

Is he really... I think they take some time to sort things. My IVA took from February to June to set up! I am praying it won't take them long to sort my unfortunate change in circumstances. Did it take long for you and have you found it difficult to get modifications?

[MelanieGiles]

Hi there

If you open up the following link and type in your IP's surname I think that you will find the address you need.

http://www.insolvency-service.co.uk/newipsearch.htm

Please also remember that as insolvency practitioner we are presently very busy people, and do employ staff to help us with our duties. But we should never be too busy to deal with a client's query, especially if the standard of customer care further down the food chain is not up to standard.

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