Hi,
My husband and I started a DMP with Payplan last April 07, then an IVA in Jan 08. However, I am not sure Payplan have advised us well. When we were told we would be debt free in five years I thought I could handle that, but playplan have told us we have to pay a lump sum in the fourth year, which is 25k, which scares me to death.
Is this normal practise? I want to sell my house and know there will not be enough equity in the house to pay this. My husband and I have split up and payplan have suggested that I buy him out, what with?!!! Can hubby declare bankruptcy? and will they come after his so called share in the house? Which i bought befor I met him and only added him on the mortage atfer we got married. My parents live with me and have a deed of trust on the house.
Desperate for help.
Hi
You need one of the IP Experts to help you, the case looks multi facet.
The lumpsome of 25K is I think the Equity release which PP had estimated to be 25K when your IVA was set up...to be released in the 4th year. But I think with market price erosion your 25K of Equity may well be 10-15K or less in 2012.I personally won't worry about the EQ as if there aren't non then you can't possibly release it in the future.
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
Hi
Payplan should have made the equity release clause clear to both of you at the time of the IVA.It is normal practice to have this clause.
Hubby can declare bankruptcy but the OR may feel that he has required a beneficial interest in the property and may want it to be sold.
Speak with your IP as soon as you can
Regards
Your position is far from straightforward
I suspect you are in interlocking IVAs? If so, if your husband's IVA fails so will yours unless steps are taken to sever the relationship between the 2. Or possibly they are entirely separate. Either way it strikes me that you need to fully examine all the options before you do take any decisions.
You need to speak with someone senior in Payplan who can advise you as to what you should be doing in your specific circumstances and not the unworkable advice with which you have so far been provided.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
It is concerning that such an important part of your IVA - ie the release of capital from your property at some point in the future was not appropriately explained to you when you agreed to look into the IVA.
Ian gives good advice - in that the first port of call must be to the IP to seek specific advice.
