Can previous secure debts be included in IVA?

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markiboy1968

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Post by markiboy1968 » Sat Jun 05, 2010 6:10 pm
I entered my IVA last sept but in January this year I could not cope with the secured loan payments, mortgage and IVA payments. I gave the keys to my property back to the first lender who sold it in April leaving a shortfall of £4000, the two secure loans I beleive are now unsecure and total £50,000. Can thse be included in my existing IVA? I'm getting worried now as they are starting to talk about legal proceedings!

Help!
Last edited by markiboy1968 on Sat Jun 05, 2010 6:13 pm, edited 1 time in total.
 
 

Shining

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Post by Shining » Sat Jun 05, 2010 8:25 pm
HI markiboy, welcome to the forum, I'm sorry but I don't know the answer to your post but will bump this up for a professional reply. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

markiboy1968

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Post by markiboy1968 » Sun Jun 06, 2010 12:20 pm
Thank you lesley, its causing me no end of worry.
 
 

Shining

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Post by Shining » Sun Jun 06, 2010 12:21 pm
Try not to worry markiboy, a professional will be along soon to give you a concise answer, however, I know it's easy for me to say that x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

kallis3

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Post by kallis3 » Sun Jun 06, 2010 12:35 pm
I think that you need to speak to your IP about this. I don't have any idea about whether or not they can be included now.

Would bankruptcy be an option now?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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markiboy1968

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Post by markiboy1968 » Sun Jun 06, 2010 3:54 pm
The secured loans and my mortgage are mentioned in the IVA as secured loans, do they do this just in case they become unsecure?

I could go bankrupt, I now rent my home and the landlord would be ok with me as a bankrupt, he knows about the IVA, my car is worth less than £2000 and could probably keep it. I would rather try and get them included in the IVA if possible, I know my payments will increase but at least I can breathe easy knowing I don't need to worry. Would my payments be less under bankruptcy than my IVA?

I am worried my IP will frown upon me handing the property back thus making myself in a worse situation but he payments on the secured loans and mortgage were over £800 a month and thats before the mortgage and IVA payment, I just couldn't live like that any longer it was making me ill.
 
 

kallis3

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Post by kallis3 » Sun Jun 06, 2010 4:02 pm
The secured loans were always secured against your property, nothing to do with an IVA.

You can try and get them included, but I have no idea whether that would be acceptable or not.

As to BR, everything would be included so you wouldn't need to worry about anything. You would probably have an income payment agreement, but this is over 3 years and is based on disposable income over £99 per month and you would pay across between 50 and 70% of this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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markiboy1968

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Post by markiboy1968 » Sun Jun 06, 2010 4:07 pm
There is mention of BR if my IVA fails, does this mean that if I fail to make the payments or ask it to cease my IP will make me bankrupt or would I still have to pay to do it myself?
 
 

Skippy

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Post by Skippy » Sun Jun 06, 2010 4:10 pm
It depends on the terms of your IVA. Some have a provision for your IP to hold onto funds to pay for BR but others don't. Also, even if you they do have to retain fund for BR, there is a chance that you won't have paid enough into the IVA to enable them to do that.
 
 

kallis3

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Post by kallis3 » Sun Jun 06, 2010 4:56 pm
If you are seriously considering BR then the best thing is to let your IVA fail by missing three payments which would allow you to save up the fees, currently £600.

Speak to your IP in the first instance though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jun 06, 2010 6:51 pm
I assume that all of this was done with your IP's knowledge? Secured loan shortfalls will already be included within your IVA - but if they are material this could result in the failure of the arrangement on grounds that the monies would be severely diluted - your IP might need to call a variation meeting.

What is the saving on a monthly basis compared to what you were paying for your mortgage and secured loans, compared to your current property rental costs?
Regards, Melanie Giles, Insolvency Practitioner
 
 

markiboy1968

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Post by markiboy1968 » Mon Jun 07, 2010 11:15 am
Hi Melanie

I contacted Payplan in January and informed them that it was my intention to hand back the property, they told me to keep all documentation and once the sale had been completed and the shortfall was known and the secured loans were unsecured I would need to contact them to look at getting them included in the IVA. They said if this wasn't possible they would look at other options.

I was paying £970 in mortgage and secured loans, then £195 for my IVA then all my other household bills such as utilities etc. I take home £1700 and just could not survive, my house needed repairs doing to it, cost a fortune to heat and if anything such as the car broke down I couldnt afford it. I was living on edge all the time! I now pay £410 rent and £195 for my IVA and my househould bills come to around £300 a month. I know if the debts are included in the IVA my payments will increase or if I go down the route of BR I will have to agree to IPA but I'm sure that its gonna be worth the peice of mind knowing I dont have this huge debt hanging over my head
 
 

markiboy1968

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Post by markiboy1968 » Mon Jun 07, 2010 5:09 pm
Just spoken to my IP who has said they can go back to the creditors and ask that for a variation to include these debts, but due to the large amounts my payments wil have to increase and so might the term of the IVA. If the creditors refuse then she has said they will discuss other options with me. Forwarded all documentation to them so just got to sit tight!
 
 

kallis3

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Post by kallis3 » Mon Jun 07, 2010 5:28 pm
Good luck, hope it works out ok for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

markiboy1968

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Post by markiboy1968 » Mon Jun 07, 2010 5:38 pm
Thanks Jan, I just wonder though will my IP want all my spare income if the IVA variation is approved or will it be a percentage do you think?

Mark
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