I was previously on a debt management plan with a company who advised me to change on to an IVA as I had £30k debt which commenced in November 2013. I contacted one of my debtors at the end of 2015 to notify them my relative whom I had a previous joint bank account with had died and during this phone call they asked when I was going to start making payment to them. I explained I was on an IVA and had been paying towards the £20-25k+ debt that was owed to them alone for 2 years already, however they advised me that my debt to them was not included on my IVA as they had a charging order on my property prior to the IVA starting. This was the first I heard of this. I contacted my IVA company and they have been unhelpful. They have advised that the only options now are to either cancel my IVA and get my payments back leaving me to sort all my debts out myself or to reduce payments on my IVA and pay the difference to this particular debt. All my IVA paperwork states this debt is on my IVA as confirmed by the Insolvency Exchange so I do not understand why it isn't. I am also extremely upset and confused why I did not know that there is a charging order against myself on my property in the first place. What can I do to resolve this?
Any help would be greatly appreciated.
The charging order would have been there because it was a joint debt and you are liable for it.
However, if it was included in the IVA you should not have to be paying the bank and your IP company should be helping you.
Which company are you with?
Hopefully Lisa will be along shortly with a much better answer than I have been able to give.
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
If they have a charge over your property then they are secured (like a mortgage) and will rely on their security rather than claim in the IVA.
That will mean that you have to deal with payment at some point or they could reposess and sell the property.
I don't see why this will necessarily affect your IVA and any other creditors except for the issue that you might not be able to maintain your payments due to repayment of the secured creditor. Payments should however reduce given that the unsecured creditors have reduced.
I think it should therefore be possible to continue/vary your IVA to get the issue sorted but this will leave you with the secured creditor to sort I'm afraid.
Many thanks. My IP is finally chasing this. I was unaware of the charging order until the end of last year but has come to light that it was put in around 2011. The debt is in my name only but the house is in joint names with my ex partner. The Insolvency Exchange confirmed the debt amount as unsecured and agreed it on my IVA, but have since said now want to not include it and go back to the charging order. Very confused. Apparently my IP have admitted that it showed on land registry upon initial checks before my IVA commenced yet they failed to inform me or do anything about it.
There is a point in insolvency law that says if a creditor submits a claim as an unsecured creditor in insolvency procedure they give up their right to rely on their security - I could refer you to the solicitor who taught me that - it may well save you a lot of money if you can argue that TIS lodged a claim for this debt and therefore they gave up their security.
