Page 1 of 1

Posted: Sat Feb 20, 2010 8:51 am
by johnpotter
Hi
My IVA was completed in Dec 09 after exactly 5 years. It hasnt been easy but at least it is all over with now.
The recession certainly helped us in that we were required by the terms of our IVA to remortgage our property in year 5 but luckily (for us) no one would lend to us. I always dreaded this remortgage clause and if we would have had to remortgage 12 months previously we would have got a remortgage and would now be paying probably double or even triple our original mortgage payments. So even with equity of over around £80k we still could not get a remortgage.
I did have to offer a lump sum payment to the IVA which I did. We offered £15k which was accepted, in fact they seemed to bite my hand off for it. £15k was better than the £42k that they initially wanted. The IVA eventually paid out £0.48p in the £ to creditors. I know what you are thinking, where did I get £15k from. Well I did some digging around and found that I had a pension that I could take early. It came a s a complete suprise to me. Not only did I get a lump sum of £25k but I also get a monthly income for life. Now our IVA is over and our secured loan on our house ends in Oct this year together with my pension we will be over £1,000.00 a month better off. What about the future I hear you ask. Well we have increased my wifes civil service pension payments by 3 to cover the furture shortfall in my pension.
The above all sounds very rosey dosnt it. But 12 months ago we had nothing and I mean nothing. Life has been hard for 5 years but I know it was my fault (I had a business fail that was secured personally by my wife and I). We came within 3 days of losing our house, had our cars repossed, gas and electric cut off and had 2 kids still at school. The IVA certainly saved us. If we had gone bankrupt we would have undoubtedly lost everything. I also had to see 2 kids through Uni.
One thing about IVA's and Uni. The funding suthorities for University do not take into account the fact that your are in an IVA they are only interested in your income and the fact your in an IVA matters not to them. Therefore I had to become a criminal to ensure that my kids got the education that they deserved. I took myself off the electrol role, moved out of the house, in all intents and purposes my wife and I had seperated. My wife then claimed that she was a single parent and therefore the kids got the funding for Uni. Illegal, yes, but the law (or rules) for Uni funding drove me to it. My kids would not have gone to Uni if we hadnt taken that course of action. I really dont care what anyone thinks about me taking that course of action as it is not fair that my kids should have suffered because of my indebtedness.
Anyway its all over now and life at last is looking good.
Good luck to all who are in an IVA, it does eventually come to an end.

Posted: Sat Feb 20, 2010 9:08 am
by Pennyless
Johnpotter thank you for sharing your experience.......I certainly wont judge you in what your situation required you to do, suffice to say you found a solution suitable to your creditors and yourself and can now get your life back together.

The fact that you have managed to allow your kids to complete their education will I'm sure of been a great relief...after all it rarely troubles me regarding my own sacrifices within the IVA but I always strive to keep the fallout from the IVA to a minimum on the rest of my family.

Good luck.

Posted: Sat Feb 20, 2010 10:14 am
by debtfree-wannabee
Hi Johnpotter
Thank you for sharing your story it is good to hear from people on the "other side" of the IVA process.

I am glad things will be better for you in the future.

Posted: Sat Feb 20, 2010 12:30 pm
by MelanieGiles
That is a great story - and you have obviously overcome much stress as a family in getting to where you are now. I would not recommend your method of obtaining grant funding to other posters - better to speak to your IP to see if some allowance can be made within the monthly payments.

Posted: Sat Feb 20, 2010 4:45 pm
by Shining
My daughter will be entering Uni in two years whilst I'm still in my IVA, she'll be in debt unfortunately and hopefully post IVA I'll have something in place to help repay this for her.

Posted: Sat Feb 20, 2010 6:47 pm
by kallis3
I'm afraid I don't agree with that method either.

My daughter has just finished Uni and I'm afraid she had to do loans all the way as we couldn't help her.

Glad you managed to finish though, and good luck for the future.

Posted: Sat Feb 20, 2010 9:16 pm
by johnpotter
kallis3 wrote:

I'm afraid I don't agree with that method either.

My daughter has just finished Uni and I'm afraid she had to do loans all the way as we couldn't help her.

Glad you managed to finish though, and good luck for the future.
My kids also had to do loans all the way to the maximum. My point is that with our combined income my kids would not even have received the full government grant becasue an IVA is not taken into consideration and therefore they could not have afforded to go to Uni. We followed all the laws and rules with reference to an IVA, laws and rules laid down by the government but at the same time that government does not allow IVA's to be taken into consideration when applying for grants. The law needs changing.

Posted: Sat Feb 20, 2010 9:37 pm
by kallis3
My daughter did not have a grant at all due to our income.

Everything was funded via student loans.

Posted: Sat Feb 20, 2010 10:10 pm
by plasticdaft
I think I would take whatever action was necessary to ensure the best for my son,and while illegal technically,there are far far worse people in society to worry about!!!

Well done for getting through your IVA,you can hold you head high that you gave a very fair return to creditors and can now get on with your life.

Paul

Posted: Sat Feb 20, 2010 10:16 pm
by kallis3
Have to say that doing anything like that didn't cross my mind at all. I agree there is far worse that goes on out there, but I couldn't have done it. My daughter has to find her own way out there, as I had to do. I had no help from my parents at all monetary wise.

I think this is one of those threads where we are all going to have to agree to disagree on some points.