Hi All, I entered in to an IVA back in 2007 and the IVA failed immediately. they asked me to remortgage my property but I couldn't, due to the debt at the time. I contacted the company several times and then never hear nothing from them again. I never actually paid anything in to the IVA. There is nothing showing on my credit file and after searching the company it looks like they were took over in 2014 and now they have gone in to liquidation. However, I have just noticed that there is a restriction on my property and that I can not sell it because of this restriction. There is a name and an address of the company (which has now gone bust) and I am unable to contact the person to have the restriction removed. Is there any advise you can give? Am I still liable for the debt from 2007? Am I able to have this restriction removed? Thanks in advance.
Here is what Land Registry say about removing resctictions:
To withdraw a restriction H M Land Registry would normally expect to receive a completed form RX4 by the person or company that has the benefit of the said restriction. If the beneficiary is unable to provide this RX4 then this form should be completed by whomever has inherited the benefit of the restriction and appropriate evidence of devolution of title lodged as part of the application. This evidence should show a clear link between the beneficiary named on the title register and the applicant that has completed form RX4.
If restriction is not withdrawn, then an application would need to be made for its cancellation. Cancellation is the term used in rule 97 of the Land Registration Rules 2003 to refer to an application to cancel a restriction that is no longer required.
Any person may apply to cancel a restriction. The application must be made in form RX3 and no fee is payable.
We will cancel the restriction if we are satisfied that the restriction is no longer required. The application must be accompanied by evidence to show that this is the case. If anyone is referred to in the restriction and if an address for service is listed for that person, we will usually notify them of the application and give them an opportunity to object to the application before canceling the restriction.
Practice Guide 19 provides further information on notices, restrictions and the protection of third party interests in the register.
The debts are still outstanding but may be statute barred, so cannot be pursued unless you acknowledge them.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It was a company called Clear Start. Does Statue Barred mean they can’t chase or claim the debt because it’s been too long? There is nothing on my credit score regarding the IVA or insolvency, my score is rated good on three different websites and I have good credit. Is it simple to remove the restriction or would I need a solicitor? I thought debt was written off after 7 years. I’m not sure what to do as all this anxiety is coming back and feel so depressed from it all again. 13 years of torment is starting to resurface. How could I find out if I am still liable for this debt? Thank you in advance.
Unless you acknowledge the debt, they cannot claim.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Ok. I’m not sure how this works. How would I acknowledge the debt as I’m not even sure who it was that I owed it all to. I need to have the restriction removed as I can’t sell my home until this has gone. To do this would I not have to acknowledge the debit? I have no evidence of the IVA and therefore I can not provide Land Registry with any details to be able to cancel or remove the restriction. It’s all very confusing and concerning. (Sad face)
Apply for cancellation of the restriction on Form RX3 (presumably downloadable from Land Registry --- tell them your story ie IVA with Clear Start -- IVA failed ---- Clear Start out of business. They will write to whoever is named in the restriction (former IP) at whatever address is given --- this should either not be responded to or returned 'Not at this address' ... so no-one benefits any longer and no-one will object, so the restriction should be removed.
On the debts front -- debts are NOT written off if ignored for 6 years ... they are simply not chaseable. You still owe the money, but they can't enforce collection. I would imagine, if they were going to try to collect they would have done so by now. But, because the IVA failed they were not, and will not be, legally written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you Foggy, you seem to give some solid sound advice to people. I am sure we all appreciate it very much. So just to clarify I will always owe the debit to the company that I originally borrowed from and this will never be written off unless paid? Even if nothing shows on my credit score? Even though I tried to settle things at the time is it advisable to try to contact the bank about the debt now? I’m just concerned as I need the restriction lifted and wonder if I need to sort the debt first. Sorry I just don’t understand all this and feel trapped again.
Do not write to creditors about the debt -- if you do that you will start the clock again and they will be able to chase you for the money .... unless you want to, and are able to, repay the debt now.
The restriction is not directly debt related and has no link to creditors it is merely there so that the IP would be informed if you tried to sell so they could grab any equity released. However, a buyer doesn't know that -- all they see is that someone else has an interest in the property which waves red flags.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
OH gosh no, I am not in a position to pay back the debt and selling the house still leaves me short but its a fresh start that I should have done years ago. chain around the neck so to speak. So I can legally have the restriction removed/cancelled by completing the form and telling them what has happened and I don't have to contact the creditors and it was up to them to contact me for the debt from 2007? I know this is not morally right but seems a bit too good to be true. I have constantly been waiting for a knock on the door from them asking for the keys to the house or the money back. Am I safely able to have the restriction removed and then move forward with the sale and perhaps buy another place with no come back from the creditors from 2007? Do you advise I can do this myself or appoint a solicitor and explain to them the situation? sorry for all these questions and I really do appreciate all the advice.
I am not sure what an IP is but I have a name and address. It states 'No disposition of the registered estate by the proprietor of the registered estate is to be registered without written consent signed by' then the name of the person and the address of the company that I entered the failed IVA with which is now insolvent. I am not even sure what it all means only that I am not able to sell the home until this restriction is removed/cancelled and now I am concerned that the debtors will chase me for the money as, like most people, thought it was cleared after 7 years. I never knew they could still chase for payment after all this time.
Would the Land Registry write to the creditors regarding the debt or is it just the person from the IVA company they write to and what happens if they cant contact the person/company?
The Land Registry will not be contacting creditors. Their only interest is the person named in the restriction, who, if they do not reply will be deemed to be of no further interest (assuming LR agree to proceed).
I cannot advise on what the outcome of the statute barring might be or its affect going forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Would you contact a solicitor, explain to them the situation and let them do it, or just fill in the RX4 or RX3 form and send it to the land registry myself? If I owed say £1000 to a bank that was part of the original failed IVA from 2007 would I still owe that to them and would they have a record of it? For example Halifax, if I tried to open an account with them, would it flag up that I owe them £1000 from 2007?
