I am in a IVA with £10,270.00 Arrears & £1,055.00
due.I recently proposed a variation of £60,000.00 Settlement on the £120,000.00 that I owe with the proceeds of the sale of my house & it has been rejected,can anyone help please.
You have not given the reasons for the rejection or who rejected. If it was HMRC for example and you have outstanding returns or post IVA debts they will normally reject. Can you post more details.
Hi & thank you for your replies, Hmrc did not reject but RBS & HBOS did stating the debtor is able to retain funds to clear mortgage arrears & put a deposit on rented accommodation. All remaining funds to be introduced. It was 63% for &37% against.
I found the IP to be not very helpful & maybe this is because of the IVA arrears, do I have any possible ways of avoiding bankruptcy?
unfortunately the creditors will usually vote for what gets them the most money and if they can see there is money due in anyway under your terms and conditions and your I&E shows you can afford to keep paying also they are unlikely to accept a full and final of less than 100%.
The creditors understandably want as much of their money back as possible, and both creditors and IP are less inclined to be sympathetic to someone with large amounts of arrears.
I don't understand why you now think you will go bankrupt? As the variation meeting was rejected but they did not specify to petition for bankruptcy you are still able to continue with the IVA.
Is the 60,000 the total available from the house sale after clearing mortgage and putting a deposit on a rented property? If there is more available they may accept a higher offer.
Hi ,the Ip has verbally stated that I cannot now ask the creditors to consider another offer & I have to settle the arrears within 14 days from the sept 3rd.There is a £130,000.00 equity in the house but after splitting up from my wife because of my financial position I need somewhere for myself & 2 daughters to live plus I have another tax bill to pay.
I have a buyer ready to go but it looks like it's all going to fall through & they will force me to go bankrupt & lose everything.
The variation meeting can be adjourned and hopefully your IP has done this and is fighting your corner. However,it sounds though like the variation was actually approved with modifications so were you asking to retain more from the sale proceeds than needed to clear the arrears and relocate? If so what did you ask to keep the extra cash for?
unfortunately it does seem as though your options now are to agree to the revised terms, pay the equity that is due into the arrangement and continue with the IVA, or go bankrupt, in which case yes you will lose all the money, and the official receiver can also specify up to three years attachment of earnings order - and their budgets are a lot stricter than IVA budgets.
I've not been on the forum for a few days as I have been waiting for a reply from my IP as I have asked my options so not to go bankrupt but it seems that I have 2 options which they have given me.
1.the equity of my house which is £125,000.00 will be received into my variation & I will have to continue paying my arrears & fees.
2.I can use the equity for a full & final payment.
My variation was £1055.00 a month over 5 years I'm in the third year I feel utter despair & the contact I have from my IP is basic & not very helpful ,business has started to pick up slowly but after coming out of the recession very battered & bruised I feel now I can't get a place with my daughters & will have to probably go bankrupt over the tax bill.
If there is any advise out there please I'm all ears.
I assume creditors have demanded the entire proceeds from the sale and would accept that as full and final. However, I fail to see why they will not allow relocation monies or leave you enough to pay the tax bill.
Your estranged wife may also have a claim against the equity if she is not caught by the IVA so she should possibly consider independent legal advice.
If the business has now picked up perhaps a variation to extend the arrangement to address the arrears might be an option. The equity in the property could then be dealt with in the normal way depending on the terms of your IVA. This would need the consent of HMRC as you would have to agree a time to pay arrangement with them but it has been done.
I cannot see how bankruptcy benefits anyone and am genuinely surprised that this has not been resolved. If the IVA is now failed as a result of the rejected variation you could propose a new one based on the sale proceeds but the new IP would need to see the paperwork so he/she could canvass creditors in advance.
Hi,
I emailed my IP on Tuesday morning just after 9 to ask if there was any other option & also asking if ,if I did propose that the entire equity be offered as a full & final settlement would that take me out of the IVA & I still have not had a reply .
I just don't think they are fighting my corner & leaving me in a desperate situation.
