SELLING DEBT ON & MORTGAGE QUERY

[GemmaC]

I am new to this site but have found it a tremendous source of support and help knowing I am not alone.

Two elements to my query, my IP has drafted a full and final IVA and creditors meeting is later this month. Noticeable that phone calls have dried up since proposal sent out but I did receive a call tonight informing me that debt had been sold on, and it has got me panicing. I referred the caller to my IP but what happens in those instances where a debt is sold on in the period the proposal is sent out and the creditors meeting. Is the new owner of the debt covered by the IVA, if agreed, even though they might not be aware of the vote because proposal had not been passed to them until too late in the day.

My second query I am in due to move house shortly after the creditors meeting (it had been been on the market for a considerable period and sale will release equity to fund the IVA). I intend to then purchase a new property with the deposit and costs of house sale/purchase being provided by family. New mortgage has been agreed and is actually larger than my earlier one but with a good rate and assistance from family my share of the costs remain as was the case with my present property. Is this a problem?

[Adam Davies]

Hi Gemma
The selling on of your debt is nothing to worry about and very common.The debt was probably sold for a few pence in the £1 so will make your full and final more attractive to that company.
Once you sell your home and the full and final settlement is agreed then you are free to do as you wish.You could buy a million pound castle,if you wanted to.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[GemmaC]

Dave – Thank you for your helpful advice. It is really appreciated and sorry to seek further clarification, just that it is such a worry and do not know what to do if proposal is not agreed. Anyway lets be positive and assume it is agreed.
Can I just clarify. Is the new owner of the debt bound by the vote of the IVA regardless of whether they vote, or for that matter are aware of the creditors meeting. And on my mortgage query, am I free to buy my million pound castle (if only!) immediately after the yes vote to the full and final offer or after the IVA duration period. In my instance that is six months which I understand is time to allow creditors to take their money.

Thank you very much

[GemmaC]

Andy - Really sorry to have got your name wrong. Could blame the worry but no excuse cos everyone sonice on this forum

[MelanieGiles]

Hi Gemma

You do need to make sure that your IP is made aware of the debt assignment, as they will want to contact that company directly and send them a copy of your IVA proposals. The new owner of the debt is the actual creditor, so the old owner cannot vote.

Personally, I would not buy a new property until the IVA has been accepted, and only on the basis that your future plans are fully disclosed within the IVA proposal. Is your IP asking for monies to be retained to fund the deposit on the new property?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[GemmaC]

Thanks Melanie. Will ensure IP is aware of new creditor. If not picked up does that mean the debt is not covered by any IVA agreement, if approved and therefore I will to deal with this new creditor separately?

Re:house purchase again thank you for your advice,problem I have is house has been on the market for a while and I was desperate for sale in order to help clear part of my debt and having identified a buyer now cannot afford to loose them. Things have also moved very fast withbuyer only viewing at a couple of weeks ago and insisting on quick sale. I could not afford toloose sale and as I have 5 dependants do need to move to new property and i am lucky that I have family who can support me with purchase but do not want to be a burden to them and want to contribute the same level as old property with the difference being that equity in old property is made available to fund F&F iVA. No monies are being retained as deposit. This is being funded by family.

[MelanieGiles]

No - rest assured the creditor will be bound.

Your house buying strategy sounds fine to me. Good luck with everything.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[GemmaC]

Thank you Melanie and again to Andy. As someone new to posting on this site, albeit one who has monitored it for a while, I can not stress enough how much the site has helped and reassured me. I would have no hesitation in recommending to anyone with a debt problem. Keepup the good work.