IVA & want to sell our house

[Rosey1612]

We are 2 1/2 years into our iva, but during that time I became ill & my hours at work had to be reduced. I also have to have quite a lot of time off work due to op's etc. I have also been told that I should not really be working. My husband is self employed & has just lost one of his main contracts. We now qualify for tax credits etc & we know we have to declare them. The problem is mainly my health & although I don't have cancer I will still have to have chemotherapy. After long discussions wondering what to do we have decided to sell. We know that they will want all of the equity, but being registed disabled are they obliged to help with relocation cost's & poss 1yr upfront rent? Also our cars have given up the ghost I need a higher car due to my losing mobility & my husbands work banger has gone bang! The worry of all this will kill me off quicker than the illness. Can anyone help please. Thanks for taking the time to read this essay!!

[kazzafunk]

Hi - welcome.

Sorry to hear about your illness and hubbys work. The first thing to do is speak to your IP I think. If you have a lot of equity in your property I am sure you would be able to retain some for upfront rental costs and also to replace cars (unless you want a Porsche).

You would have to get your IP's permission to sell anyway so it's worth having a chat with them and explaining everything you have told us on here.

There is never any point in making an illness worse. In my view and experience, creditors are not monsters who want us to suffer. They were very good to us when I offered a f&f sum that was less than originally expected. I believe this was probably due to my illness and the fact I supplied a lot of evidence to show why we could only afford to offer X. They all agreed and for that I am very grateful.

Good luck - and please keep us informed.

[Rosey1612]

Thanks for such a quick reply. The other problem I have is that I have been getting disability for a year now & I was told that no one could touch it. It pays for all the things I can no longer do for myself. Because I was told no one could touch it I did not tell my IP. Will there be a problem in doing so now?

[kazzafunk]

Which benefit is it Rosey? If its DLA care component, you should really have declared it, then given details of what it is used for. So I wouldn't have thought it would be too much of a problem.

Did you appeal losing your DLA mobility? Although it seems that you won't win I believe over half of appeals are overturned. Can you guess who I used to work for?!!

[Rosey1612]

Hi Kazzafunk, I have just been reading your blog. Regardless of your circumstanses, you are tough & inspiring. I have just made my husband read some of it. I do the figures & I have only just got him to agree with me & even he feels better now x

[kazzafunk]

Ahh - thank hun. I think I have come out of it much stronger but if you'd have known me a year ago I wasn't! It's great to have hubby on board supporting you and I hope you get the solution you deserve!

[Rosey1612]

Sorry I meant losing my disability as in movements not benefit, sorry. & Yes I can guess who you used to work for.
Also these IVA companies work for the creditors, I find mine very hard to talk to, bad choice at the end of the day. we dont even have continuity of managers. Ours got promoted & they just left us hanging in mid air, not doing anything about us. Review dates came & went. Will be so glad to see the back of them. We owed similar to you. Not personal debt, but business, we just had to pay wages on credit cards until our business was sold........but not enough to cover the debt. We came out owing £43k then suddenly it shot up to £74k just in the time of finalising everything & getting started again

[kazzafunk]

Not all companies are like that thank goodness. I agree they have to get the best result for creditors but they are supposed to be the go-between with creditors and debtors so shouldn't be biased. Ours was fantastic and I am pleased I found the forum first as that helped me to make the decision of who to work with.

I don't expect you wish to name the company?

If you find it difficult to talk to them, then write them a letter explaining things and asking your IP to contact you direct. I would also send it recorded (it doesn't cost much more) so you know they have it.

[MelanieGiles]

Why do you feel that all of the equity will be grabbed by the IVA Rosey? If your IVA was propsosed using the IVA protocol, then you were only required to release equity up to a maximum lending of 85% of the value of your property, and the same principles should apply if you decide to sell.

I would definately ask to speak with your IP directly to discuss this situation and confirm how much money you would need to retain to relocate - if you feel this is what you need to do. Are you struggling with paying the mortgage and costs associated with the property, and is this because your IVA payments have been set too high? You could always apply for a variation of terms to reduce the IVA payments, as selling your home is a drastic option and could possibly be avoided.

[Rosey1612]

Hi Melanie
The reasons for selling are that my husbands income is now reduced due to loss of a contract & my ill health. Our income would not be enough to even keep paying £200 & the stress of keeping it going when I have no idea how much my husband is going to earn, being self employed, & I dont know how much longer I can work. All a bit of a pickle really. Thank you for reading & replying to my post.

[Rosey1612]

Well folks I am now going to phone my IP. Wish me luck![:p]

[Shining]

Good luck and and do keep us updated. x

[Rosey1612]

Well they were quite helpful on the phone. Just getting all the figures ready to send off, lets hope they are just as helpful then. The problem with this company is that they got us to take out an insurance to cover missed payments through illness etc. Well, when I had 6 weeks off for spinal surgery I sent the insurance company my payslips & all the hospital & op details & they had the cheak to ask for all my bank statements. Did they really think I was going to go & do some work on the side after having screws & metal in my spine. Then they sign us up for the 'assisting' side of their business. More money. I didn't realise that I had to physically opt out & all it seems to be is joining a credit ref agency, so I will stop that going out.
I just hope they give us the correct advice at this awful time & not go for the option that just makes them even more money!
thanks for all your comments, you have all given me the boost to do something about it x

[kazzafunk]

Hi Rosey - glad we helped you to face your IP! Let's hope it all goes smoothly.

No idea about the insurances though - never had to do that with mine.

[Rosey1612]

By the way the insurance never paid out, so I no longer pay them! They have a bank service, protection insurance (that's a laugh), debt repayment, IP's, 'T.... Assist', car ins, home ins..................Oh yes they want to sell you the lot!