What are my options?

[lollie]

I am currently 20 months into my IVA and own a house. According to my plan, in year 4 I am supposed to try and re-mortgage my house and put the equity towards the IVA.

At present I will be changing jobs. The job is with the same company but in a different location.

I am looking to move and want to know if I will be able to sell my house and buy another house with my partner.

The house we are looking to purchase costs a lot more than my present house.

I do not live with my partner at the moment.

My current house is solely in my name and I have a lodger who pays rent. My partner and I are looking to purchase a house together providing my IVA will allow me to do this.

Alternatively, my partner may be able to purchase the house in his name only but I will still need to sell my house.

This move will not decrease my IVA payments, it may even enable me to increase them.

There is hardly any equity in my house at the moment.

What are my options?

[Adam Davies]

Hi
I would think hat this would be acceptable as your IVA payments will not reduce.
The equity provision will probably transfer to your new property but will only affect your share of the equity.
Have a good chat with your IP
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[MelanieGiles]

So long as you invest all of the sale proceeds into the new property, and your partner confirms in writing to your IP that they will agree to a re-mortgage during the final year of your IVA, there ought to be no problem in moving.

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

[Andrew Graveson]

Hi lollie,

It might be an idea, if you haven't already, to discuss these plans with a mortgage broker.

With factors such as an IVA, an equity release clause, a more expensive house, sole or joint ownership etc there's much to consider.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[mikebdomain]

Hi Lollie

As Andrew states, it is worth talking to a broker to clarify what your options are based on your current circumstances.


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[iva experts]

Hi Lollie,

I would contact your I.P and discuss all your options with them, as they know the terms and conditions of your IVA. Your move may not be a problem if it allows your IVA payment to remain the same.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[lollie]

Thanks for your responses guys.

After 6 months, I finally had my 21 day variation meeting on Friday which unfortunately failed due to one of my creditors sending an email at the last minute requesting a full meeting to take place.

Debt Free Direct have been so unhelpful and its taken me 4 days to get anything out of them.

I have already found a buyer for my house and have found a new house. Solicitors have been instructed and I am due to exchange contracts at the end of this month.

The problem I have is the restriction that DFD have registered on my house with the Land Registry. Without the removal of this restriction, the sale and purchase can not go ahead and I stand to lose hundreds of pounds paid out in solicitors fees.

DFD have said that they may be able to fast track the creditors meeting but my opinion is that they have not done enough to convince the creditors to agree to the variation.

I have told them that my partner is willing for the 4 year equity release clause to be transferred to the new house and that my IVA payments will probably increase.

What more can I do?

I also don't know what the difference is between a 21 day meeting and a full meeting and how long does it take?

Thanks

[MelanieGiles]

What does this creditor mean by a "full" meeting? There was either a creditors meeting held or there was not? Clarify this point with your IP as it does not make sense.

[lollie]

Hi Melanie

What they mean is that one of the creditors has raised a query to the variation and has requested that all the creditors should be able to vote. I've been told that the 21 day variation meeting was if none of the creditors queried the variation then DFD would just assume that they had no problems with it and would go ahead.

However, it will now be going to a full creditors meeting where they all get a chance to vote. If 75% or more agree then the variation will go ahead.

I have since spoken to DFD who have gone back to the creditor, Grant Thornton that raised a query and asked for resolutions to their query which would prevent the full creditors meeting from taking place as time is of the essence.

I think I may have answered my own question but will keep you updated on the outcome!

[lollie]

Bad news Melanie I'm afraid.

After submitting various information about the sale and purchase of my house and the new house and also supplying Debt Free Direct with a provisional income and expenditure report for myself and my partner, it looks like DFD are trying to include my partner's income in the IVA!!!

I thought they weren't allowed to do this as we weren't together when I accumulated the debts.

Apparently as my partner has a lot of disposable income and as mentioned before he is willing to pay a larger proportion of the household bills, they are saying that the equity I am releasing and putting towards the sale of the new house belongs to the creditors and I may not be able to release the same equity in year 4 of the IVA. Therefore our joint disposable income which is actually just my partner's disposable income should be put towards the IVA.

They said I should be able to pay over £1000 into the IVA when my current payment is £408. The £600 difference is my partner's disposable income which they seem to consider is also mine.

They have however said that they will propose to Grant Thornton that I pay a minimum of £528 which is the £120 that my salary has increased since the IVA started 2 years ago.

I don't know if I'm making much sense but I'm really confused.

The whole point of this exercise is to stop it from going to a full creditor's meeting where they get to vote for or against the initial variation.

Should I settle for paying an extra £120 into the IVA which is actually my partner's money or should I wait for the full meeting to take place??

Help!!

Any other suggestions from members would be greatly appreciated.

Thanks

Lollie

[lollie]

hey andy...any advice on this???

i thought the transfer of the 4th year clause to another property was supposed to be straight forward...debt free direct are making a right meal of this one!!

[Viki.W]

Hey Lollie, I've just read all of this thread and it doesn't make any sense to me! How can they do this? Unfortunately as you probably know, Melanie is on her hols but hopefully Ian or Andy will reply. I'll keep bumping it to the top for you. You're not the first person on here to have had problems with DFD. Hope you can get some advice soon. Viki X

[lollie]

Thanks Viki, I know it's a really long thread but I have to explain what's happening.
DFD are really bad. Can you believe that the variation team were unaware that I had recently just had my annual review where I was told I didn't have to increase payments. They are now trying to get me to pay in my wage increase over the last 2 years even though my expenditure has equally increased??!!

The left does not know what the right is doing!!

Fingers crossed I'll get some help soon!

[Viki.W]

Bump for Lollie.