www.iva.co.uk

Hi, I entered into an IVA back in Sep 2010 with Blair Endersby who then sold it on to Grant Thornton. One of the debts within the IVA was MBNA. In October 2010 they applied and were granted an interim charging order on my property.
I am now in the process of selling my house and hit a brick wall as when we came to the week of exchanging contracts this was brought to my attention by my solicitors, something I had not fully understood at the time ( I thought it would be simple, as Grant Thornton have a letter of undertaking from my solicitor that all equity gained from the sale would go straight to them to repay my debts) But I'm finding I'm just getting nowhere, Grant Thornton cannot get MBNA to remove the charge as they have sold the debt on to Eversheds/Max recovery. Max Recovery are not interested in removing the charge as they never put it on. Can anybody suggest anywat around this problem. I want to pay them back in full but cannot ! thanks in advance

Hi carloslfc - welcome to the forum

Mmm that is a difficult one as the debt lies with whoever owned it last, being Eversheds/Max Recovery. Have Gt tried speaking with them? How was the CO put in place post IVA? Hopefully one of the GT representatives on here will pick this up and contact you directly.

it doesn't matter who the debt lies with really.

If you entered your IVA in September and the charging order was granted in October as Tina says the the court made a mistake. They could not make an order on a debt already subject to an IVA
(this sounds like you did not attend or bother to tell the court at the time the application was made)

Why doesnt your solicitor just make an application to have it struck out ?

Alternatively, if I misinterpreted the facts why doesnt he ask for the order to be suspended to enable the sale ?

As long as your IVA was approved before the final charging order hearing then the debt should be included in your IVA.

GT should be able to contact the creditor and sort this out for you, good luck and let us know how you get on

You say that the IVA was approved before even the Interim Charging Order hearing - in which case the security is not valid without the approval of the Court. I don't think it is right to assume that the Court made a mistake - perhaps no-one brought the existence of the IVA to the attention of the Court?

Either way, surely the property can be sold with your solicitor holding the money for the benefit of either the charging order creditor or the IVA creditors generally?