www.iva.co.uk

Hi

I am currently in an IVA started NOV 08 i gave my house back to the mortgage company in oct 08 could not keep it in the IVA as huge secured loan from Firstplus on it.

I estimated my house would sell for at least £145K so not a problem with paying the mortgage back and charges etc.

My mortgage company have now put my house up for sale for £128500, meaning i now have a shortfall of £11,500 would i now be able to include this in the IVA or would there need to be another creditors meeting.

Any advise would be appreciated.

Thanks
Nikki

Hi,

I am assuming that your IP would have known your intentions with the property and a provision should have been made for an estimated shortfall, but it is always difficult trying to estimate the shortfall.

They are bound by the arrangement, and depending what was drafted in your original proposal then a second creditors meeting may have to be called to consider the new dividend to creditors, although if your IP envisaged this it may well already have been taken care off.

I would check your proposal first and if it is not clear then discuss with your IP.

Carl

The shortfall is a claim in the IVA, and so long as the proposal does not guarantee a minimum dividend payment, there should be no need for an additional creditors meeting.

Thank you for your replies that has made me feel alot better.

Thanks
Nikki