I have now paid up my full 5 years of contributions in my iva. Unfortunately we have been uable to find a company who will provide a 70% ltv remortgage for us. Before christmas we spoke to our IP who finally looked in to the market for us ( even though it wasn't her job! as she said to help us) and she agreed that there was nothing around. Throughout last year 2 variation meetings were called to our creditors. the first was for a 70% ltv which was agreed unfortunately the mortgage offer fell through, we then went for a variation for a years extension which was rejected by First Direct who stated they had never received documentation for the first variation and said they would have rejected that as they wanted nothing other than the full value that was stated in our paperwork in our IVA. Upon speaking to our supervisor she informed us that they cannot negotiate with First Direct and we would have to put what we thought was an acceptable proposal forward. We currently are awaiting the outcome of a variation we have put forward to extend for anything up to 2 years whilst still paying monthly payments to try and get a mortgage for the balance to pay First Direct back which
currently stands at £15000 which is 70% ltv at the minute. Our IP spoke to First Direct who kindly informed her that they don't do 7 year iva's but put the variation in and they would look at it. Can they make me bankrupt even though officially my IVA has gone past its end date. Would a solicitor or the courts be able to advice as First Direct are being stubborn and it is not our fault we cannot get a mortgage.
At the moment there is no raisable equity in the house as there is no mortage product available to raise the amount. You mention an IVA protocol what is it? Any advice would be appreciated as it states in our iva that failure to raise 33p in the pound would be deemed as a failure.
thanks Skippy. It's causing loads of arguments at home at the minute and We are both under the doctor for blood pressure as it is proving very stressful to even try and get a mortgage. If we need to take First Direct on in court so be it they are not going to take my house if I can help it.
Hi rhb I have paid all monthly contribution as required all that is outstanding is the equity I am suppose to raise. The pence in the pound who knows as every time we ask for a variation meeting our supervisor puts their fees up so we have no chance of making 33p in the pound at the minute! Might as well gone bankrupt in the first place instead of paying rougly £14000 over 5 years
Last edited by roz on Sun Jan 03, 2010 6:09 pm, edited 1 time in total.
Hi Roz, sorry to hear about your experience. my proposal states that i must try and gain a re mortgage to realise available equity, but it will not be deemed a failure if i have taken reasonable steps and cannot remortgage, surely this view is taken for all iva,s??? and why do creditors think that us people in an iva can automaticaly gain credit again in a market they control. They have often said that credit is not a given right in normal circumstances why expect it in more difficult circumstances. I just feel for you in this stress full time Roz keep ya chin up. Rob x
Your IP needs to work harder on this Roz. It is ludicrous for an IVA to have to fail after you have paid over 5 years worth of contributions - everyone knows that sub-prime mortgages are pretty non-existent at the moment. This does not sound like First Direct's usual procedure at all.
Hello roz I was in a similar situation and after a few weeks its was decided that it was not my fault that the equity had fallen out of property I had like you done all that was asked of me. Speak with your IP, actually the person in charge not the call centre staff and ask for them to convene a meeting and to fully discuss and try and conclude your IVA. What would be gained by making you bankrupt? also do your payments now stop after the 5 year period. Read your proposal and maybe put up on here the actual wording regarding the equity clause...also who are you with ??
Last edited by kabby3 on Sun Jan 03, 2010 8:53 pm, edited 1 time in total.
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Thanks for advice every one. Melanie where would we stand on this matter. Our IP does not seem very forthcoming in helping us at all. It would seem First Direct are trying to pull their weight on this, apparantly it is a side company of First Direct who are dealing with the debt. Can they make me bankrupt? I presume I still have to make monthly payments as I am awaiting to see if the last variation we put through gets accepted to extend for anything up to 2 years whlist I try and remortgage.(My husband also has an iva but his has been accepted to extend for another year.) The company I am with used to be BN Jackson Norton but our IP and his manager moved to a company called Mcintyre Hudson so we only ever deal with our IP now.
The clause in my iva states that" failure to pay unsecured non-preferential creditors a minimum of 33p in the £ shall be deemed a failure of the arrangement2
The mortgage clause says" on the 4th anniversary you are to undertake a re mortgage raising approx 80% ltv of the property value at the time and after payment of the existing mortgage and fees you are to deposit your share of the balance into the arrangement.
With regard to the mortgage issue, your IP should seek legal advice on the wording of this and what obligation this puts you under. I would say that if you cannot raise the mortgage concerned, then you have not failed in your duties under the IVA, and there should be no need to do anything further. At the end of the day you could also make an application to Court for directions.
Whilst I am happy to help as much as I can - your IP should really be providing you with theis sort of help as they have detailed knowledge of your case which I do not - so it is difficult for me to advise properly.
How much money has your IP already returned to creditors?
Thanks Melanie, I know our IP should be advising but when you speak to her it is as if she does not know what should be going on and has said a couple of times that not being able to obtain a mortgage is new to her and not sure of next step. I don't think she has been doing this job for very long and also with moving away from BN Jackson Norton to McIntyre Hudson this is just a sideline for them until our iva finishes as Mcintyre Hudson don't deal with IVA's. Our IP was Michael Saunders but he passed everything over to a lady called Zena Macguigan. As of year 4 the dividend to our creditors was 10p in the £. bearing in mind everytime we have had to put a variation in the IP fees increased putting our money down. What do you have to do to make an application to the courts, would it upset our IP. Is this a formal application or it is just for advice?. Would love to have a meeting with our IP but don't think it would help as she was unwilling to negotiate for us with First Direct saying all the ideas have to come from us but we could not keep putting variations in due to cost involved everytime. Thanks once again Melanie pity we did not open our eyes to more Iva companies in the first place like yourself who are more than helpful.
That is not good enough - your IP is responsible for you case and they cannot hide behind inexperience - indeed I feel that your IP would be horrified that a member of his staff would be discussing such issues with you. It is imperitive that you at least speak to your IP on the telephone - and if this keeps being denied to you then this gives grounds for a complaint to the regulatory body.
If it would help, I would be happy to have a word with your IP and share my thoughts with him - alternatively Andy might like to draw this to the attention of your IP firm on behalf of the forum. There has to be a sensible solution here to suit you and the creditors.
Just caught up with this Roz and I am so sorry that First Direct are being unreasonable and that your IP doesn't seem to be helping you.
I would certainly take Mel up on her offer, or speak to Andy as she advises.
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
Melanie it is our ip we are speaking to. Have sent an email to her today asking where we stand at present and will come back to you for further help when I know a bit more. It seemns a bit crazy to have to offer an extension for anything up to another 2 years to try and get a remortgage when the market is still at a stand still when most other agreements run on an extra years payments.
