When i took out my iva in 2006 I informed my mortgage company, and i informed my iva practitioners of the amount of my mortgage
My mortgage was split into four accounts. Due to repossession proceedings it has now been discovered that three of the sub accounts are in fact Credit Loans, not mortgages.
The lender did not claim for these under the iva proceedings, (yet they must have been aware they were loans not mortgages)
Its unlikely the iva practitioner asked them to submit a claim for them as at that time they were regarded as mortages.
Can they now submit those claims as credit agreements now that the iva is half way through?
thank you
If these were unsecured accounts there may be equity left after the repossession which could be paid into the IVA offsetting the affect of the increased unsecured liabilities.
All creditors should have been notified when your IVA was being set up including your mortgage company.
Although they would not have voted as they would rely on there security (the property), however if the event of a shortfall then yes they are bound in the IVA like everyone else.
There are a few issues that will need to be addressed, firstly you no longer have a mortgage payment, and i assume renting so your IP will need to look at your Income and Expenditure.
Depending on the shortfall from the repossesion then this is going to increase your over debt amount, which will result in the dividend to creditors being reduced so it could well be that your IP may have to call a variation meeting to propose a slightly diffrent dividend.
But as other posters suggested, best to discuss with your IP directly as they will be most familiar with your circumstances.
I'm sorry, I didn't make it clear, although the lender started repossession proceedings in 2006 - there were major faults in the way they handled the accounts, and it still going through the court now, although latest news is that finally they have admitted they mismanaged the accounts - and are considering reducing the total of the three sub mortgages - or rather consumer credit loans.
I feel it would strengthen my arguments re having the total amount reduced if it was a case of if a settlement wasn't reached under the current repossession proceedings, should they have to go back to court again with the court treating these as credit agreements, not part of the mortgage, they would be unforceable.
I did ask my ip about this but the reply was a bit uncertain, i dont think this has happened a lot.
thanks for your help
Surely your IP carried out at Land Registry search to see what encumbrances were registered against hte property? If not, did you make them aware that these were secured debts?
