How much debt can be written off?

[Michael Peoples]

I fail to see how his creditors could have any claim on your mum's property. I think your mother should certainly seek another opinion because if I were one of her creditors I would reject the IVA and either petition for her bankruptcy or charge my debt against her property.

[MelanieGiles]

Interesting to see the CAB referring clients to DFD!

I completely agree with Michael - and would recommend that you express your concerns to your IP, and if necessary take a couple of other opinions to be sure. I don't see how your Mum's husband could successfully argue to have generated much, if any, of an interest in the property - unless they have lived together for a number of years and he has contributed to the increase in value directly.

[Declan at DebtFreeDirect]

Hi All
Just picking this up for the first time. Without knowing the case details in dept, i cannot really comment but Im more then happy to help the client with any concerns or queries regarding the validity of an IVA as it is an extremely important decision to make and one which they must be 100% comfortable with and confident of before entering.

Thanks

[bergy]

I to would be interested in the outcome of this one.....

Just make sure that the proposal is not based on a projected dividend from equity realisation in the final year which clearly isn’t achievable from what you have said.

Last thing you want is 4 years worth of payments only to find they cant release the equity that was committed and could end up failing the IVA !!

Surly that could not be the case if the IVA is agreed but they are unable to release equity in the final year that the IVA fails? There seems to be plenty of people who cannot release equity in the final year because of the current financial climate who have a clause that goes on for an additional 12 months?
.... or am I being blond?

[Michael Peoples]

It is really down to creditors. If creditors are prepared to accept a proposal that would accept 12 extra payments of £140 in lieu of £80k equity then they would be mad. However, this would have to be addressed at the time of the meeting of creditors and not left until five years are up.

There are many creditors who would reject the above proposal out of hand because there is so much equity now. It would be different if the property increased in value over the term of the IVA as this money would not have been available to creditors in bankruptcy at the time of the original meeting.

[kallis3]

We have to try and release equity of £28k or an extra 12 months payments of £615 which won't come anywhere near.

I doubt the house will have gone up in value but the equity will have gone up as the mortgage and secured loan payments will have bumped that up.

Presumably because it is written into our proposal/chairmans report it can't be altered?

[MelanieGiles]

That's correct Jan - the key is demonstrating whether you can raise any equity at all, and not the quantum of that equity - but only if these terms are specified in your proposal, which of course is the case with yours as it is Protocol 2008 reliant.

[kallis3]

Thanks Mel, that's put my mind at rest.