5th year IVA with problems

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Atlas

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Post by Atlas » Mon Aug 09, 2010 6:25 pm
Hi all,

I'm new to this, so please bear with me.

My husband began an IVA in 2006, and up to last week we thought everything was ok. Earlier this year, we had had a letter from another insolvency company saying they had taken over his IVA, and were investigating the conduct of the IVA, but when contacted, we were assured that all was fine, and this was normal practice when taking over an account.

Last week, we received a letter from the IP asking for a redemption certificate from the mortgage company, and contact to make an appointment with a valuation company, as agreed within the IVA proposals laid out originally.

My first question was why the redemption certificate? On contacting the IP, my hubby was told that this was to check on the price we paid for our house, and that the valuation now was to check market value now on our house, so that half the equity could be paid into the pot.

At the start, when reading through the proposal, and amendments, my husband queried the equity thing, and was told that we had to have a valuation done at the start, and then after four years another one would be done. The IP informed him that they needed a starting point for the equity, and that after 4 years another valuation would give a maximum equity for them to then subtract the differences of the two valuations, split that amount in half(as I am not part of the IVA) and take his half of equity for the pot.

The letter last week reads that half of all equity ever is to be passed into the pot, not half of the difference between the two valuations. I am distraught.

Throughout the course of the IVA, we have not been able to increase any payments(he pays £500 per month), so fail to see how we could even have saved for this -had we known- as any increase in wages for him would have been paid into the IVA pot as and when(he is self-employed). I do not think we will be able to remortgage because of his credit history, and I am not in a position to take out a loan because I am not working at present.

Do you think he has any redress on the explanation of the first IP he had, as clearly what he said does not appear to be what was written?

We are at present awaiting a copy of the original agreement, as one was never received.

:-(
 
 

orchid5

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Post by orchid5 » Mon Aug 09, 2010 7:05 pm
Hi Atlas and welcome to the forum, i can't give you any answers as i'm not qualified to do so, so hopefully one of the forum experts will pick this up. The whole thing re mortgages is a minefield and i'm sure you will read many threads about it. I hope that you get your question answered shortly and this can lay your mind at rest, well done for getting this far too.
Om shanti, namesté, good luck to all who are embarking on the IVA journey, it isn't always an easy one but the outcome is the best.

IVA COMPLETED August 2012, received Completion certificate 18.4.13.
 
 

Shining

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Post by Shining » Mon Aug 09, 2010 7:13 pm
Hi Atlas welcome to the forum, it's usual for any equity to be released into the IVA in the 4th year usual is 85% ltv. Present time Mortgages are few and far between for us in IVA's and the usual is another 12 monthly payments in lieu of any equity.

I'll keep this bumped up for a professional to answer for you. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Atlas

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Post by Atlas » Mon Aug 09, 2010 8:06 pm
Thanks Orchid and Lesley.

I await with baited breath.
xx
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