I have 2 years to go on my IVA and making payments of £350 per month, My mum is going to loan me the money to clear it I have offered £8,000 as a settlement, the IVA company have come back saying that due to the equity in my house this is unlikely to be accepted? They will wait to see if I fail the IVA so they can force bankruptcy? My main creditor is Natwest who I have the mortgage with so highly unlikely they will let me remortgage, at my wits end with this am I going to lose my home after keeping within the terms of the IVA for 5 years!!!
I would assume that you are with Payplan if they are threatening you with BR. You can insist that they do not do that.
You can also insist that the offer is put forward as it is your IVA. Most of the time the creditors are happy to accept a lower offer as they get their money quicker.
I made a full and final offer a couple of years ago which was accepted even though we had a lot of equity.
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
I would assume that you are with Payplan if they are threatening you with BR. You can insist that they do not do that.
You can also insist that the offer is put forward as it is your IVA. Most of the time the creditors are happy to accept a lower offer as they get their money quicker.
I made a full and final offer a couple of years ago which was accepted even though we had a lot of equity.
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 you have two years to go plus a possible extension in lieu of equity your offer may be rejected as creditors would get more. However there is nothing to lose by offering a full and final as if rejected the proposal just remains the same.
Tell your IP you want the offer put forward as per the terms and conditions of your IVA and there is to be no mention of bankruptcy proceedings. It is an offer to settle and that is it.
Basically they are saying that, due to the equity ( which I assume is over £5,000) the creditors will, at least, get an extra year --- so you are looking at 3 years left at £350 = £12,600 .... so you can see why they think £8,000 might be a little light. £10k might be nearer the mark, bearing in mind that both creditors and IP will make some savings on administration costs over the next three years, as well as the "bird in the hand" effect.
Payplan are the only firm I know who routinely threaten BR -- and actually poke the sleeping bear by mentioning it in the offer --- get any mention of BR removed !! It would be interesting to know if another firm is now doing this !
Handled fairly by your IP there is no chance of losing your home -- at worst you will get an extra 12 months payments added on ( assuming you have the standard clauses).
Let us know how you get on and best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I also had this threat of BR from Paylplan at the end of the 5 years if I could not re-mortgage which I couldn't. I refuse to sign it and it was removed. I would stick to your guns over this. It really annoys me that Payplan do this as it causes a great deal of stress.
It certainly does! Couldn't believe it when I read it and immediately insisted that it was taken out.
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
Just insist they take the Bankruptcy clause out of the resolutions. That way if creditors reject your offer your IVA will continue back as normal with you making the contributions.
The other thing to think about is to potentially challenge their calculations as to the equity figure.
If you can show this is less than £5k then the extension will possibly not apply to you (subject to your terms)
I think it is really bad that they do this - I was really angry when I read it and it will upset a lot of people who haven't found this forum.
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
