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Hello all,

Have just registered after reading some of the useful advice, support tips posted on this website. It's a pleasure to be able to join your website.

Was just wondering if I could ask you all for a bit of advice please.

On the 29th March 2007 me and my partner had both of our IVAs accepted after accruing debts of £30000 each. Myself being able to pay a lump sum equating to 25p in the pound and my partner paying a lump sum and £100 a month for 5 years equating to £36p in the pound. The lump sum was relised via an equity realise from our property which has increased our mortgage payments from £100 to £625 a month. the reason for this being that when we originally bought the property it was a 50-50 shared ownership scheme with a Housing association. The remortgage enabled us to pay of our original mortgage buy the other half of the property leaving £11800 each to pay into our IVAs. After the IVAs were accepted and the new mortgage payments kicked in the raelisation of life under an IVA hit my partner.

She actually left me for a couple of weeks because she could not cope with living to a budget. After discussions she came back but things have not improved. She still feels that she continue going to Bingo every week and go out every weekend getting drunk and still have money to pay our bills. I have had enough of this and want to go my own way. Does anyone know how my IVA will be affected if we sell the house and I move into rented property. We borrowed 90% value of the property £85000. The property was valued at £95000.

Hi W75 and welcome to the forum. Sorry to hear that you are having difficulties.

If you and your partner were to separate, this would have little effect on your IVA as presumably you have already paid over the lump sum. Your partner's UVA - which I have to say I find odd that she was required to pay £100 per month for five years, as the costs of running that almost exceed any benefit - will continue, but she could use her share of the house sale proceeds to try an early settlement. After agents and solicitors costs, there is unlikely to be too much left.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thanks very mich for your speedy reply Melanie. I have just paid my lump sum due to problems with the remortgage. I was under the impression that the IP would relook at my income and expenditure before discharging me from my IVA. If the house is sold quickly and I have a decrease in expenditure I thought that they may make me pay monthly payments as well. On the day of the creditors meeting the IP told me that I would be discharged from the IVA after 6 months but I am not sure whether that is 6 months after receipt of payment or six months after the creditors meeting. Does anyone know what is usual practice in this situation?

Your IP will close your case when he has agreed all creditor claims and distribute the monies. As you have now paid over the monies, this should not take too much longer. What term was your IVA origianlly geared to run over?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie,

Thanks for getting back to me again.

The IVA was going to be five years but it was discovered that I had no disposble income after the remortgage so a lump sum figure was put forward by IP for the IVA.

Even with a lump sum offer, there would be a set duration. Was it to run over 12 months?

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Sorry Melanie I misunderstood the question. You are correct it is to run over 12 month period.