gone through hell and still end up failing IVA?

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Iain.ll

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Post by Iain.ll » Sat Jul 24, 2010 6:57 am
Hello please could you advise, myself and wife are nearly at the end of year 4 in our IVA, we are with debtlifeboat (formerly BakerTilley) part of our IVA includes a £20k payment in the final year in leu of equity that was apparently in our property when when agreed to the IVA. Currently our home is worth around £145k to £150k and we owe £135K everytime I ask debtlife boat and raise my concerns they keep advising me to wait until we have 6 months remaining which is when i should pay the £20k, however the equity that was once in the home is no longer there and no mortgage lender will is going to touch us, please help as dont know what to do. We have faithfully paid approx £900 per month for the last 3years and eight months and feel that due to property prices falling since 4 years ago we are going to end up having gone through hell and still end up failing. Please couold you offer any advise.
 
 

kallis3

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Post by kallis3 » Sat Jul 24, 2010 7:04 am
Hi and welcome to the forum.

Sorry you are having such a stressful time at the moment.

It is in nobody's interests for the IVA to fail now. I imagine that you will probably be asked to continue on for a further 12 months in lieu of the equity.

Insist on speaking to your IP rather than one of the office staff. If you can't get through that way, try emailing via the below link and voice your concerns.

http://www.insolvency-service.co.uk/newipsearch.htm
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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MelanieGiles

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Post by MelanieGiles » Sat Jul 24, 2010 4:01 pm
Your IP could be more helpful here, as a variation meeting of creditors needs to be called for them to determine how the IVA should be finalised. You can't magic up equity if it is not there - and it was dangerous to calcualate an actual sum to be paid when the IVA was proposed in any case.

I think you need to steel yourself to having to pay additional contributions during a final year, but why not instruct your IP to call a meeting of creditors now to identify the issues with the equity and seek creditors wishes. At worst you will probably be asked to pay a further year's contributions.
Regards, Melanie Giles, Insolvency Practitioner
 
 

plasticdaft

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Post by plasticdaft » Sat Jul 24, 2010 6:54 pm
MelanieGiles wrote:

Your IP could be more helpful here, as a variation meeting of creditors needs to be called for them to determine how the IVA should be finalised. You can't magic up equity if it is not there - and it was dangerous to calcualate an actual sum to be paid when the IVA was proposed in any case.
I think you need to steel yourself to having to pay additional contributions during a final year, but why not instruct your IP to call a meeting of creditors now to identify the issues with the equity and seek creditors wishes. At worst you will probably be asked to pay a further year's contributions.
It does appear quite common that people know how much equity they are expected to pay over at the proposal stage Mel.

Is it not written into most proposals what happens in the event of equity not being avaiable for whatever reason?

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

kallis3

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Post by kallis3 » Sat Jul 24, 2010 7:00 pm
We know how much equity we are required to release, and we know that that amount will be there. Doubt we can remortgage though.

Most IVAs will have the extra 12 months now. Iain's will be pre protocol.
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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MelanieGiles

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Post by MelanieGiles » Sat Jul 24, 2010 7:08 pm
Equity should never be calculated at the outset of an IVA, as market conditions and changes of circumstances will dictate what can be available. I personally favour the position in Scotland where equity is valued at the beginning of the PTD and not the end - at least you have five years to know how much will be needed, and if the property goes up in value that is then your good fortune.
Regards, Melanie Giles, Insolvency Practitioner
 
 

plasticdaft

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Post by plasticdaft » Sat Jul 24, 2010 7:16 pm
MelanieGiles wrote:

Equity should never be calculated at the outset of an IVA, as market conditions and changes of circumstances will dictate what can be available. I personally favour the position in Scotland where equity is valued at the beginning of the PTD and not the end - at least you have five years to know how much will be needed, and if the property goes up in value that is then your good fortune.
I was going to mention that but didnt want everyone being jealous of our better system!!![:D]

Although having looked in on a scottish debt forum on occasion its not always dealt with at the start leading to a few failed PTD's due to stupid amounts of equity being required after 36 months of payments. Although the man in CAB did advise me to make sure the equity figure was agreed at the start(done by means of a drive by valuation,which we were allowed to contest if we didnt agree).

Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
 
 

kallis3

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Post by kallis3 » Sat Jul 24, 2010 7:22 pm
We are supposed to release £28k between us, and that will be easily achievable, I just doubt we will get a remortgage.

I do agree though that these figures should possibly be sorted out towards the end.
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
 
 

deb.ml

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Post by deb.ml » Sat Jul 24, 2010 10:40 pm
Hi All,
Not posted or a while been trying to sort out my mum's estate as she left no will. Because my mum got sick and passed away just after I started my IVA and because my daughters DLA had been included in it but creditors did not want to allow extra expenditure, I had another creditors meeting and (thank goodness!!) a much more managable amount now each month. I do, however, now have it over six years. I assume in my case the equity will still be required? Also mum's house is on the market (had a buyer but he pulled last minute). Not sure what it will fetch. I'm hoping to get about £18,000. I'd love to do a full and final but, although it is practically what I owe on IVA it's not the original dividend. Does anyone think full and final of that amount could be accepted without release of equity? I need to think of the future of my disabled daughter and don't want to be struggling with no equity. Does any of that make sense? lol. Sorry, summer holiday brain!!!!
IVA started Sept 09. Glad to be on the way to being debt free
 
 

MelanieGiles

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Post by MelanieGiles » Sat Jul 24, 2010 10:44 pm
I assume that your inheritance is to be treated as a windfall in the IVA Deb.ml, so I don't think it will be available to you to negotiate with.


If I recall rightly, haven't we recently had a debate about your case on the forum?
Regards, Melanie Giles, Insolvency Practitioner
 
 

deb.ml

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Post by deb.ml » Sat Jul 24, 2010 10:58 pm
Hi Melanie,
Yes, it was posting on this forum that caused my situation to be looked at and changed because of the DLA. I have spoken to IP and he was very nice and said to write down about my daughter and it may be accepted (only may). It is a windfall and I am giving every penny to IVA. I had thought I would get a little more but house has been reduced to sell. I don't want to negotiate the windfall as I know that goes straight to creditors. I owe the money. I would just love to do a full and final and concentrate on the adaptions still needed for my daughter which cannot be done on any grant. It's been the hardest year and just want to do the right thing.
IVA started Sept 09. Glad to be on the way to being debt free
 
 

MelanieGiles

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Post by MelanieGiles » Sun Jul 25, 2010 12:48 am
I wish you the very best of luck. Your daughter is the absolute priority in all of this, and her care must come first to anything.
Regards, Melanie Giles, Insolvency Practitioner
 
 

deb.ml

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Post by deb.ml » Sun Jul 25, 2010 3:59 pm
Hi Mel,
I will post when I know more. Fingers crossed.
This forum is such a great thing for those of us in IVAs etc.
Thanks,
deb
IVA started Sept 09. Glad to be on the way to being debt free
 
 

Skippy

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Post by Skippy » Sun Jul 25, 2010 4:51 pm
GOod luck Deb. As Mel says your daughter is the priority, so I hope things work out for you xxx
 
 

Hammie1

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Post by Hammie1 » Sun Jul 25, 2010 7:58 pm
Hi Iain.ll

Just out of interest Debt Lifeboat is the company that has just been asigned to our case. Overall what have your experiences been like with this company??.

Thanks
sam
F&F accepted 12/8/13 - Awaiting Completion Certificate :-)
Thanks to everyone for your support. Could'nt have done it without you.
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