I'm in month 58 of my IVA with all payments made on time. Over the past few months Debt Life Boat have been pushing for me to take out a secured loan as I (and DLB) have been unable to remortgage my home to release the required £17k due in July. I refused a loan which they put forward (£9k over 15 years @ £131/month) as my IVA terms don't say anything about having to take a secured loan and for such a long period of time. I have questioned why I am not simply paying an additional year as per the terms but they insist that I can't and when they called earlier today they said they will be terminating my IVA. They are putting this in writing but I won't get it until the weekend. I'm now wishing I had just gone bankrupt in 2009 instead of putting my wife and two young kids through 5 years of scrimping to end up in the same position. Any advice would be welcome.
On what basis are they saying that you need to execute a secured loan?
If what you are saying is actually what they are saying and doing, I feel you have grounds for a complaint - so long as your IVA does not specifically state that you have to explore the secured loan route - which would be unusual.
I am sure that this will be resolved for you, without any notion of a secured loan, but do let us know what the letter says when you receive it - the key is identifying what grounds they are actually relying on.
Thanks Melanie.
My IP is saying (via office staff) that there is too much equity in my home to simply pay another year and if I can't remortgage and won't take a secured loan he has no option but to terminate my IVA.
I wrote to my IP in March stating the reasons for not going ahead with a secured loan and he replied saying that the £9k loan (which was put forward by a company who 'help' debt lifeboat and their clients) was for half the amount I was required to remortgage by, so I would be no worse off than if I had been able to remortage. When I refused to accept the secured loan (which incidentally would have ran for 3 years beyond the remaining term of my mortgage!) my IP wrote stating ‘I cannot convene a creditors meeting and tell them you have not been able to find a willing lender as that would be untrue’. He went on to say that he would leave me to find a remortgage at a lower rate but I need to do this immediately.
They have also been pressuring me to try and borrow £9000 from a 3rd party / family member(s), which they say is the minimum amount they would put forward to the creditors.
So, I don't know what grounds they are relying on but they seem to be digging their heels in. I will update once I recieve the letter.
Thanks again.
They cannot go against the agreed terms i.e. no remortgage = extension. You have been unable to remortgage --- it says NOTHING ( presumably) about a secured loan ( which is NOT a remortgage ).
Also any equity release provisions cannot run beyond the current mortgage end date.
Make a formal complaint then escalate to their regulators.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You need to check your proposal and make sure there is no minimum dividend requirement or modifications requiring equity to be released. It may not be automatic that an extension be applied and a variation may be required. While extensions are usually granted there is a possibility yours could be rejected if you have the means and ability to release some.
I assume the £131 per month is no more than 50% of your IVA payment and there is substantial equity in your property.
The word 'loan' does not appear anywhere on my IVA terms. It states remortgage or pay an additional 12 months, but Debt Lifeboat are having none of it. I feel like I'm banging my head against a brick wall every time they call.
The IP who is threatening to terminate the IVA is a Partner so he pretty much IS Debt Lifeboat. Will I need to formally complain to the parent company Arrandco Investments and / or the ultimate owners of the company Baker Tilly Holdings Ltd?
You will need to ask them what their complaints procedure is, which they are obliged to tell you, while you are at it (even though you can look it up) ask them who their regulator is.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
You need to check your proposal and make sure there is no minimum dividend requirement or modifications requiring equity to be released. It may not be automatic that an extension be applied and a variation may be required. While extensions are usually granted there is a possibility yours could be rejected if you have the means and ability to release some.
I assume the £131 per month is no more than 50% of your IVA payment and there is substantial equity in your property.
Michael, yes the payments were for 50% of my IVA but they lasted for 15 years and I only have 12 years left on my mortgage. There is around 60k equity in our house, obviously my wife's half of that is ringfenced.
I'm pretty certain that there are no modifications but I will double check. Thanks
I am sure under protocol that any secured loan can't go beyond the remaining mortgage term.
I can't think of any other financial industry where the goal posts are moved so easily. It is about time the regulators[??] stepped in and sorted out the current IVA fiascos. We have PPI claims holding up completions, sometimes for as long as two years, and now we have secured loans being forced upon people.
I have no problem with any conditions put forward at the initial set up stage and agreed by both parties but I do have a real problem with changes forced after initial agreement
You are in a catch 22 position, fight your corner and risk failure of your IVA after all this time, or be bullied into a secured loan, that you were not aware of when agreeing your IVA, to secure the conclusion of your IVA
It does seem to me that you have little protection in an IVA.
However I would gladly take out a secured loan rather than be threaten with bankruptcy like I am if you cannot re-mortgage. Some people have been grumbling about paying an extra 12months on this forum but I would rather do this any day than be made bankrupt after paying an IVA for 5 years.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by country girl
It does seem to me that you have little protection in an IVA.
However I would gladly take out a secured loan rather than be threaten with bankruptcy like I am if you cannot re-mortgage. Some people have been grumbling about paying an extra 12months on this forum but I would rather do this any day than be made bankrupt after paying an IVA for 5 years.
Country Girl,
I took an IVA to be debt free in 5 years, not 20 years. I would gladly pay an extra 12 months but, as my I.P has indicated, this doesn't seem to be an option????? Please read the whole thread. I have paid 58 months and they want me to take a 15 year secured loan despite the fact it would: a) Go beyond the term of my mortgage and b) Secured loans are not mentioned in my IVA.
Thanks anyway, I know you mean well.
I think this is a great example of an iva firm employing staff who have no clue.
Blackstar: explain to anyone phoning you on this matter, that you will only deal direct with your IP. Take names and be sure to say that you will mention them in person when you complain formally to your IP's regulatory body if they persist.
That should do the trick.
Really hope you get a good result.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Its a shame that IVA's are a much better option if you live in rented or council accomadation. The adverts for IVA's always state a debt free future in 5 years. Its why we are prepared sacrafice everything for 60 (or 72) months for the end result of debt freedom and a fresh start. If this is not the case what is the point? 20 years is pure insanity. Stand your ground and good luck.
Unfortunately this is an ever more prevalent situation that has been occurring over the last couple of years, IVA `companies` trying to force people into ridiculously lengthy, extortionate secured loans that had never been previously agreed, advised or even mentioned at proposal drafting stage.
There was a particularly heated debate on the forum regarding this matter a number of months ago, I`ll see if I can locate the thread and bump it up.
It may be worth both you and country girl seeking legal advice - maybe you can get a free initial consultation with a solicitor and take your IVA proposals with you ???
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
I did read your whole thread Blackstar, I am not agreeing that is right that your are being forced into a secured loan at all. I feel it is totally wrong all I was saying in my mind bankruptcy is the worst thing of all and at the end of the day it seems the creditors can make us bankrupt if they wish even though we have paid our IVA for 5 years.
I agree with Radish IVAs are much more attractive if you live in rented accommodation. The money tied up in your home in only accessible if you either take out additional borrowing or sell it and I do think there needs to be more protection on that front.
I will be taking legal advice Goosed if they do not agree my 12 month extension.
Unfortunately at the end of the day the IP and the creditors are the ones pulling the strings.
