www.iva.co.uk

Hi,

I’m wondering if I have good grounds to complain.

First of all the way they valued my assets was based on what I believe normal best case market value might be for my home and assets - hence making me look like I was in a better position than I actually was.

Second of all I was advised to ask my father to forgo his share in dividends as a creditor to me. Otherwise my home would probably be at risk and I would not be likely to have the IVA approved. Father had loan agreement in place as he had also paid off the bridging loan on my asset and they just treated the asset as fully mine. No advice from IVA.

Thirdly was the fact I had advised them of a CCJ from one of the lenders and the lender continued to peruse it through court and got a final charging order on my home. They got the charging order 3 days before the chair meeting of my IVA and so I have been held accountable to that debt separately to my IVA.

Should they have advised me better how to value my assets? Taken into account my dads interest in the property? Stopped the CCJ action knowing about the CCJ?

They have told me that they could not stop the court action of the charging order as they or me were not aware of action till after one month after charging order approved. They were aware of CCJ nearly 6 months prior to this charging order. So they said they done what they were duty bound to do and had they known there was further action after the CCJ then they may have stopped it but a CCJ didn’t mean any further action on the debt.

If they had advised me how to value my assets correctly than it would have been seen I have very little value in my home and so my father wouldn’t have had to step aside to save my home.

They should have also noted his interest in the property and advised accordingly.

The exact value of your assets --- presumably your home --- is not an issue at this stage. This comes into play at month 54 when it has to be professionally valued. At the moment everything is an estimate. Unless your father is on the title deeds and actually legally owns a portion of the property it is all yours. His loan to you is, presumably, unsecured and cannot be tied to the property.

Your father would be viewed as an associated creditor and, as such, the other creditors do have the right to request that his dividend be put aside and also to limit his voting rights.

On the charging order --- your provider might have been remiss. They knew of the CCJ and should have been mindful of the possibility that the creditor would move to get this secured on the property and moved accordingly. However, this now means that your payment to this creditor can be offset against your income and will reduce your disposable income, and therefore the IVA payment, by this amount. Your creditors will bear this loss, not you.

A complaint would probably not go anywhere. But, I am no legal expert and this is just my opinion, so you should seek legal advice.

I don’t really have any form of income and so this will not effect my monthly payments. My payment towards the IVA was the sale of my assets. Should I ask them to offset the Charging Order amount and them pay the charging order off?

Ah --- yours is a lump sum IVA ??

The charging order is the same as a secured loan and will be paid from the sale proceeds, along with any other secured lending, before any remaining equity is used to pay the IVA.
Property valuation is always based on 'open market value' --- and, again, for the purposes of the IVA offer, will be (should be) an estimate and your offer should be worded as such ... if it sells for less, creditors get less ... it is a gamble they take.

If it is worded such that whatever sum they quote is fixed, for the purposes of a complaint, the answer would be that you should not have signed to agree !

Without seeing all of the paperwork and knowing all of the circumstances, which I am not in a position to do, I cannot say anything more useful

Yes it’s a lump sum IVA.

The charging order is on the house I live in with my children and so is not going into the IVA. It also has a very small bit of equity but in light of the charging order it has negative equity.

So should they take this charging order amount against the net proceeds from sale of my other assets?

No -- the charge is against the property, to be settled on sale, not against other assets.