I have an IVA with Payplan I am just coming up to my years review, I have debts of around £20,000 all in my name. I currently pay £206 per month.
My question is that when the plan was first put together when they asked for my mortgage statements they noticed that I had an unsecured amount of £10,000 with my mortgage provider Northern Rock. I explained that I did not want this included in the IVA as this was a Joint mortgage with my wife, PP said that this was not possible. They suggested that I stopped paying the unsecured section of the Mortage.
However I did not wish to cause any credit issues with my wife so carried on paying the mortgage in full, I contacted my mortgage company about 3 months in to the plan to see what the situation was. They explained that they had been contacted by PP but NR had requested some documentation but they did not respond and from their point of view all was as it should be.
I was sent documentation by PP that my wife needed to sign about our house at the end of the IVA process but she did not sign it, they have not asked for this since.
In the chairman’s report there was no mention of the unsecured loan, I have not mentioned this to my IVA company as I am very worried about the adverse effect this will have on my wife who was not best pleased with me having an IVA.
Sorry for the waffle but wanted to paint a little bit of a picture my questions are these,
What happens if the IVA company notice that I did not follow one of their instructions to me about ceasing payments to Northern Rock, can this be put on to my IVA
And my second question is; at the end of the 5 years I have been informed that I need to realise equity in to the IVA but my wife will not agree to this (quite right) can they force me or do I have to pay for an extra year.
Hi Tim. If you refuse to comply with a "reasonable request" by your IP the IVA can be failed. Your wife refusing to sign the RX1 could trigger this and it should have all been discussed and decided before you entered the IVA.
The unsecured lending HAS to be included.
Refusal ( as opposed to failure to be able to) to release equity will also be regarded as a potential failure trigger and the creditors could petition for bankruptcy to force the release rather than allow a 12 month extension. Much will depend upon the relative figures at the time ... of course by then you could be looking at having wasted 5 years time and payments.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The mortgage is secured, so not in the IVA -- the unsecured loan should be. Are you certain it was unsecured and not a second charge ( is it a NR "Together" Loan ? )
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your wife had to keep paying the loan otherwise they would have come after her. An allowance should have been made for her to do so and all the other issues with the property should have been addressed at the start. Your wife should not be penalised for your IVA and indeed should have a claim against it.
thank you Andy for getting back, yes its just me in the IVA although Pay Plan insisted on working out payment's on a joint income (this has been rectified for my first anniversary as my wife earns 12k more than me)
