www.iva.co.uk

Hi

I wish I'd found this forum months ago when I started trying to enter an IVA. My post has two main areas - help understanding a restriction, and advice about my partner's IVA (my wife and I have applied for IVAs at the same time).


Background

My business went bust at the end of 2019. My wife was a co-director. I had a director's loan and some personal credit cards, we jointly became liable for a large business loan and company overdraft.

We tried to sell the house to clear all of our debts, but it turns out we have subsidence and can't sell the house (at least not yet, another year or so and it might be fixed).

We tried to enter an IVA each. After a couple of failed attempts, mine has been approved but we couldn't get someone to vote on my wife's. After rescheduling the chairman's meeting we finally got a 'no' vote, but without any justification. We are hoping that it will go through later with a modification, but perhaps this is just wishful thinking.

Land registry

My IVA has been approved, I just need to sign and return the docs to PayPlan. Included is a Land Registry Application to enter a restriction:

No disposition of the registered estate by the proprietor of the registered estate, or by the proprietor of any registered charge not being a charge registered before the entry of this restriction, is to be registered without a written consent signed by Nick Payne of Kempton House, Dysart Road, Grantham, Lincolnshire, NG31 7LE or their Conveyancer.

I was told that the registration would just mean that Payplan would be notified if we sold the house, but that isn't how I read the restriction. This would presumably prevent a second mortgage or secured loan with out Payplan's permission (fair enough), but would this also prevent us getting a new mortgage deal when our fixed plan runs out? What else might it mean?

My Wife's application

I now feel that I should have held off saying I'd accept my IVA until Lucy's had also been approved. I'm worried that this isn't going to go ahead, and that perhaps I should have used mine as a bargaining chip somehow. Any advice on what we could do at this stage to help get hers through would be appreciated.

Hi,

The restriction does just mean that you cannot sell the house without permission .

You won't be able to remortgage during your IVA but once completed you may be able to - we have two mortgage experts who post on here who could be of help when the time came.

I believe others have been successful in managing to continue with a fixed rate mortgage but I imagine it would depend on your mortgage provider.

As regards your wifes IVA, if rejected then she could always go onto a Debt Management Plan and try again later. I don't think you holding out on yours will make any difference. Have Payplan said what the problem is?

Thank you Kallis3

No, Payplan weren't given a reason for the no vote. It was given at the last minute with no further info given. They had to chase round to get anyone to vote, and our ex accountant had said they would vote in favour, but on the last call apparently were too busy.

Fingers crossed that Payplan can manage to get some votes.