www.iva.co.uk

hi i have been in a dmp for 3 nearly 4 yrs and contacted clearstart who advised me about lump sum ivas ,i have since decided to sell our home to offer around 40 p in the £ to our creditors and then go and rent eleswhere.( no money free for monthly payments )
i have stopped payments into my dmp whilst the iva proposal is been set up but as my property is'nt yet sold i am worried that legal action could be taken against us whilst our property is on the market as it may take a while to sell ,does the ip put forward the proposals prior to the sale of the property or have to wait until its sold ,i don't want anything to upset the chances of our iva been accepted .

Hi
How much have you been paying to you DMP and have there been a significant changes in you circumstances.



Dave Beech

To answer your specific question, once you are in an IVA creditors cannot take any legal action against your property until it is sold, and if I were acting for you I would put forward the offer of the basis of a sale within the next few months, and ongoing payments until that time.

You do need to be careful, because with a background of a DMP, creditors may well see a five yeasr IVA with an equity release at the end a more viable option for them - but from your post you seem to suggest that your future rental will be more than your current mortgage payments, therefore eradicating your disposable income. It this correct?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

If what Melanie is right in terms of additional cost of rental taking all your disposable why would creditors accept f&f when if you stayed as you are they could recieve four to four and a half years of VP's?

And why has it taken so long for them to come up with this idea

Dave Beech

hi beechy we can't stay where we are its a one bedroomed property and there are two adults and 3 children .

Your house has one bedroom???

yes i was so determined to try and pay off my creditors we've stayed here for all these years but now my eldest is 110 my other daughter whos dissabled is 4 and baby due next week ,i feel i have been wrongly advised in the first place if i had done the iva years ago we might have been sorted out by now ,as it is i am giving up everything and have struggled to pay into a useless dmp for all these years ,my mortgage here is only £125 per month so i stayed put so i could offer more to my creditors but now its just immpossible ,now that the girls are getting older so i think the iva would pay creditors back quicker and give us as a family a fresh start .

Hi
I would think that your plan to sell and offer a full and final is a good one.
No creditor would like the idea of five people living in a one bedroom house whilst in debt management plan or in a monthly IVA
Take Melanies advice and look for an IP to propose this offer now so that you can then look to sell your property once it is agreed.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

hi andy thanks for your advice ,i have now sent all paperwork in to my ip ,cancelled all direct debits to the dmp i was on and have opened a new basic bank account ,the advice i have received from yourself and melainie has been wonderful ,i finally feel that i am getting somewhere now ,my ip said he has written to all of our creditors explaining that we are trying to set up a lump sum iva from the sale of our home ,will things get a bit nasty now that i'm not paying token payments ? is there a worry of court proceedings or anything or are they usually happier knowing that we are trying our best to resolve the situation ? its just that i know it may take a few months for our property to sell .
thankyou again .

Hi
You will start to get letters again but just pass them onto your IP.
If you get any legal threats that your IP thinks are genuine they can apply for an interim order with the court and this will stop the legal action in it's tracks,whilst your F&F is considered.
Fingers crossed

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp