I am very worried about my iva terms and conditions. I'm in an additional year because I can't remortgage and have equity in my home. My IP states he will recommend bankruptcy and force the house to be sold if I can't remortgage. This was not clearly stated in the terms and conditions. The whole point of taking out an iva was to protect my family home. I was told this was the best option. The debt is 70k and the equity is 180k. At the start of the iva the debt was 85k and the equity was 155k. I don't think an iva should have been recommended. At the time I would have got a remortgage from a sub prime lender or maybe agreed repayment plans or took the hit and opted for bankruptcy. I think I have been hoodwinked. I was also under treatment for depression when I took on the iva and believe my judgement was impaired. The IP was made aware of my illness. Who can I go to where my case can be looked at properly? The insolvency service can't help and im going round in circles. Thank you. John
Hi John. If your proposal states that you do an extra 12 months if unable to raise equity, and you are now doing those 12 months your IP cannot push for BR as you are fully complying with the terms of your proposal (assuming you do have the usual equity release clauses).
Yes, you have a fair amount of equity there -- as you did at the start of the IVA --- the IP cannot now say that BR is the best option, having, presumably, counselled otherwise at the start.
What reason have the IS given for not being able to look at this for you ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with foggy ... If you are already doing the extra 12 months instead of releasing equity then you should not be receiving this message ... I would insist on a conversation with your IP rather than a caseworker and have it confirmed in writing .
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
A worrying time for especially as you posted on Christmas day with no hope of any answers to your plight till early January. As someone who entered an IVA with a ton of equity in your property I would imagine the creditors dictated the terms of your IVA so the agreement will be heavily in their favour, as to whether an IVA was correct your IP has more info than anyone else, your IP cannot introduce a new term to your IVA and then make you bankrupt for not meeting that term ie re-mortgage it will not get past the Judge, could it be that the terms of the agreement have not been met elsewhere whereas only a re-mortgage will save the IVA from failing due to the terms not being met ie final dividend to your creditors to which I imagine would be 100% of debt
I can only agree with what the others have said. If, in your IVA proposal it stated you could pay an additional 12 months in lieu of re-mortgaging then they cannot change the goalposts.
I would be speaking to a caseworker and insisting on your IP calling you back - I never actually spoke to my IP during our IVA but if I had needed to I would have insisted.
You do have to question if an IVA was the correct solution for you at the time.
What does your actual t&c's state regarding equity ?
Major makes a good point in that a judge is unlikely to agree a bankruptcy order given the fact that you have complied with your IVA and bankruptcy is the only way an IP can force a sale of your property
I find this all very worrying. I am coming to the end of my five years and my house has been valued. I also have a fair bit of equity. When I queried what would happen when I reached this stage at the beginning of my IVA and cannot re mortgage I was told that's ok you will just have to pay another 12 months but I cannot find written anywhere in my chairman's report.
What ever is the point in completing an IVA if you are to be made bankrupt at the end of it?
At the end of the day the equity is" all on paper" it is your home.
This really does need to be addressed .
Ask your IP to confirm to you exactly where in the IVA it gives him the power to apply for you to be made bankrupt - and if he is able to do this, where he can demonstrate he made this clear to you and you accepted that you understood these terms.
As a matter of interest, which firm is your IVA with?
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
Ask your IP to confirm to you exactly where in the IVA it gives him the power to apply for you to be made bankrupt - and if he is able to do this, where he can demonstrate he made this clear to you and you accepted that you understood these terms.
As a matter of interest, which firm is your IVA with?
