no finish in sight! Melanie, Help !!

[kallis3]

What exactly does it say in your proposal/chairmans report about this Roz?

[MelanieGiles]

I still recommend legal advice on the validity and enforceability of the equity provisions. Your IP should regularly use insolvency specialist lawyers, and they would be the first port of call for me if I had to deal with this sort of problem.

[RHB]

So if you were to end it now you woud have paid back 10p in the pound is that right?

[orchid5]

This problems with re-morgaging seems to be becoming more and more of a minefield to be honest. Unfortunately the recession seems to be causing more and more misery for some. There is little hope of this improving me thinks for the forseeable future and for those such as Roz and others, myself included this could mean months of worry due to not be able to release equity if any in our homes. My report quite clearly states that my IVA can't run for more than 72 months so i persume that if i can raise equity to the satisfaction of my creditors my IVA will complete at 5years (some hope as i am probably in negative equity at present with a 95% mortgage) otherwise i continue to 6 years! blimey just when you think you are turning a corner something bumps into you. My circumstances have changed since entering into this IVA such as having met a lovely man whom i will be moving in with but at the moment my iva is holding me back as i don't want him to be involved with it and don't really want the hassle of having to sort out all the problems with my house etc. Despite that and having said what i have said, the last two and a half years haven't been easy but having money in my pocket albeit not much and not worrying about those credit cards bills dropping on the doorstep in jan have been worth it, roll on the to 2013 (end of 6th year and hopefully end of IVA).

X

[MelanieGiles]

Thank goodness the IVA protocol has sought to address the inconsistency of equity release provisions - used by IPs and enforced by creditors historically. In four years time this situation ought to be a lot clearer I hope.

[roz]

Melanie
HELP!!!!
Re our last posting on the 4th January I now have an update finally. I received a phone call last wednesday saying that our IP was finally going to put the variation through that we had asked her to extend for a further 2 years and try to obtain a mortgage during the 2 years. Our IP advised us that the variation had to be changed to include the following options listed below, but also said it could still be failed as it had not made the 33p in the pound.

Option 1) to extend for a further 2 years and to make the monthly payments still and to try and obtain a mortgage for £15000. Failing to get a mortgage would mean the iva would finish after 2 years contributions.
Option 2) Accept the present dividend and conclude the agreement.
option 3) Supervisor is to fail the agreement issue notice of termination creditor to commence own recovery.
Option 4) Instruct solicitors to petition for bankruptcy, fail the arrangement and issue notice of termination.

I received my letter on Thursday and was shocked to see it stated it was a meeting to fail the arrangement and the allow the creditor to consider the above resolutions. I understand that these options had to be put on the variation for legal reasons!

I was also amazed to find that almost 50% of all contributions are to be swallowed up in IP fees. Currently the figure stands at over £12000, which would also include fees of £6850 if this new variation was accepted.
I am due to pay in £28000 in total which would include a mortgage for £15000 and also included a return to the creditors of 3p in the pound that was paid out in 2008,but in fact my creditors would only see £14000 of this which works at 18p in the pound. The increase in ip fees from that originally estimated at the outset has reduce my pence in the pound for the creditors by approx 10p.

We are now at our wits end with this and don't know which way to go. We desperately need advice but not sure who to go to. Do you know anyone in the Manchester area where we could take all our paperwork and have a chat,we are quite happy to pay for someomes time. I am desperate not to loose the house. I know I got myself into debt in the first place but have kept to my agreement for the last 5 years and can't help it if i cannot obtain a mortgage because of the credit crunch. We spoke to size 5 last year and he and a gentleman called David offered to speak to First Direct for us would you think this a wise move? .My IP said I was entitled to get legal advice but she did not think it would do any good against the creditors. If I was to be made bankrupt could I appeal as this is the fourth variation that has gone to the creditors and if First Direct turn this one down again would it not be seen as them being obstructive as we are trying to offer a solution to this matter? thanks in advance

[admin]

The forum is very busy at the moment and as this important posting may have been missed, I am bumping it to the top of the listings and have slightly altered the heading to reflect the urgency.

[roz]

thankyou very much appreciated admin team

[MelanieGiles]

Thanks Admin - I am sorry but I did miss the post.

Firstly, I think that your IP is correctly calling the meeting, although I would not have indicated that it was a meeting to fail the IVA but rather to determine how it may be best concluded. In calling the meeting, your IP is effectively giving creditors the full range of options available - and she is probably required to do this under the terms of the IVA.

Next on fees. These will be probably allowable under the terms of the IVA - and if they are high then creditors will probably cap them. Whilst this may look very disproportionate to you, let creditors rule on that particular issue.

My concern about this issue has always been the interpretation of the clause the IP is relying on for saying that your IP has failed. Assuming that your IVA guaranteed a minimum dividend, and that has not been achieved, then your IP has to conclude that the IVA has failed - but appears to have tried to put forward a variation on two separate occasions, As one creditor is blocking this - and presumably they have at least 25% of the aggregate - then you might like to try a referal to the Banking Ombudsman on grounds that you are not being treated fairly. It is ludicrous that an IVA where you have paid in five years worth of contributions should fail, due to conditions completely outside of your control - and although not ideal, I feel sure that the creditors will agree the two year extension.

Let us know how you get on.

[roz]

Thanks for the advise Melanie, reference the banking ombudsman or other legal advise would it be wise to sit tight until feb 12th when the creditor's meeting takes place. This is actually the fourth variation we are going for and unfortunately the bank who has the biggest aggregate is the bank who is causing problems for us.
Do you know anyone in the Manchester area who we could go to and see for advise ie a solicitor or someone not sure where to go.

If bankruptcy proceedings started how long would I have roughly to challenge it with legal advise etc thanks.

[MelanieGiles]

I do know a good solicitor in Manchester - Mark Davies of DWF solicitors. Personally I would try and take advice prior to the meeting - which can be adjourned for good reason for up to 14 days.

[kabby3]

Roz the best of luck lovely I hope they will see sense and decide its beyond your control and conclude IVA that what happened to me using IVA protocol xx big hugs I know its a worry but what would they gain from bankrupting you ??? xxx

[roz]

Thanks we have been told the iva protocol does not apply as our iva was taken out before it came in. Will have to see what happens onb 12th Feb. fingers crossed!