IVA Company not helping!!

[beckym]

I have asked before about my current situation and have gone through the proper channels of writing to the IVA company and explaining that now I am pregnant we are needed to move which would involve one of two options..
Move to somewhere cheaper paying off secured loan and taking iva with us...or
Sell up paying off secured loan and IVA and moving into rented.
This letter was done to the company 2 weeks ago asking for a speedy response as our mtg is currently coming to the end of its term.
After 6 calls and a rather unhelpful person, we are still no further on.
They have said that as the IVA was only agreed in May (i did not know i was pregnant at this time!) we could probably not move to somewhere cheaper as creditors will probably not like this.
I was met with some short answers and after enquiring if we could rent was told not too sure either...
HELP
I need some answers quickly, I appreciate that the creditors have to call a meeting to discuss options but would like someone to confirm what we can do as our IVA company is really letting us down in this desperate time.
Can they not just agree a minimum amount for us to repay depending on what we get for our house?? And we pay any extra should we recieve it??
Any ideas would be greatly appreciate.

[MelanieGiles]

Becky

You really must speak to the IP directly on this important issue rather than a staff member. Personally I cannot see any problem with you downsizing so long as your creditors are not affected, but this will need a formal variation which is usually a formality. When are you do to leave work on maternity leave?

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

[beckym]

Not due to leave until christmas time all being well

[beckym]

Who do I ask to speak to, as I was not aware the staff member was different to an IP..if so am obviously not talking to the right people

[MelanieGiles]

So you ought to be able to maintiain current IVA payments until that time, when you will see your income reduced to maternity pay. This gives you and your IP plenty of time to come up with a plan to put towards 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

[beckym]

Exactly what we have been thinking..do you think beeter to go to a cheaper property maintaining the mtg and IVA or to pay off everything and rent

[beckym]

Problem also is, if we are able to get a mortgage is this going to cost us the earth due to bad credit..we currently pay aprox £380 for mtg and £345 for secured loan..so can afford aprox £700 for mtg, but are going to need to borrow about £120k
If we sell and pay off everything we personally are a lot better off financialy

[MelanieGiles]

If you were to get a mortgage for £120,000 at say 7% due to your adverse credit rating, this would cost £700 per month on an interest only basis - so no real saving for you. And I imagine rented accomodation would cost just as much.

My gut feeling is that if you can stay in your current property until you leave for maternity, then ask your IP for a six month payment reduction or holiday until you return to work. It would also be sensible to try and work out what your family budget will be upon your return - ie you will be receiving child benefit and tax credits (if your combined income is less than £50k), but there may be added costs associated with childcare which will need to be taken into consideration. Also you may decide that you do not want to return to work full time.

It is never to early to plan for the financial future, so get your partner together this weekend and go throught the figures as best you can. Your IP will thank you if you go to him/her with a well thought out plan, because do bear in mind that our advice is only as good as the data provided to us.

Keep posting if you have any other queries. I, and the other forum experts, are happy to help if we can.

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

[ray_a]

Hi Becky

In addition when you decided what your plan is write to your supervisor and you will find his name on the official documentation sent to the court.

At least by writing it is on paper and generally well thought out.

Good Luck

Ray

[beckym]

I have phone my IVA company today who refused to put me through to the IP and said that anyone could help.
I have now been told yet more different information. thus being that we are tied into the IVA and can do mothing for 2 years.
I was advised to default and then make a propsal to the credits myself.
Our terms state:
'No future variation to the arrqanement in order to consider reduced contributions or early settlement should be proposed in the first 24 months of the arrangement. Failure to maintain contributions as indicated in the proposal will constiture immediate failure of the arrangement.'
I assume this means we can not pay off IVA, however the following does not state that we can not move
'An open market valuation of property must be provided in year 4 together with mtg redemption figure. The debtor will remtg the property and introduce the max available to them in the remtg'
Nothing mentions the fact that this can not be done on a different property in year 4.

HELP!!!!!

[beckym]

Doe this two year arrangement also mean that I can not ask for reduced payments whilst on maternity leave???

[MelanieGiles]

If I were your IP I would definately be proposing a variation - to propose that the variation disallowing variations within the first 24 months be removed!!! It is a ridiculous variation, whoever dreamt it up in the first place.

The property equity release clause does not prevent you from moving, but you would need to be careful to ensure that creditors would not be prejudiced as a result of the costs of the move.

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

[beckym]

The problem i have is actually being able to speak to my IP!!!
Do you think this is something she would do under the circumstances??

[MelanieGiles]

I cannot possibly comment upon what another professional would do or say, neither do I have detailed knowledge of your case. I suggest that you find an e-mail address for this lady, and send her a note with a read and delivery receipt to advise that her staff will not put through your calls.

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

[beckym]

Will try that and hopefully she will be as helpful as you have

thanks