I did iva to keep house, Mitch e'll Chatsworth said I have to sell the house

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by barry645 » Thu Jan 04, 2018 5:14 am
In an iva for 90,000 with Mitch e 'll Chatsworth on advise of my advisor
Third year appraisal my house now has 250,000 equity other things are the same
I am sure of over the phone she said I had to sell the house
And she would sort it and put it forward
Only now my marriage is over and I owe 5000 to a loan shark no house am I checking
I did iva to keep house
I had an interest only mortgage 400 per month for 240,000
I was 59 years old
I had not missed a payment
No offer to try and get a loan
Not told no better off if paid in full
Not told as a sole trader if I hit a blip no chance of loan
Or a loan at 1245%
5 years would have been up now
My accounts show no increase in earnings
House with 660,000
When 65 sell house 750,000 pay off 240,000 left with 500,000to downsize
I was told none of this
Was she right I had to sell
Absolutely no benefit to me
If didn't should she have done everything to stop me as my advisor
Only winners were creditors full lot after 30 months
One managed to with modification add 5000 to a 20,000 think he owes me
Also a card 7000 to 10,000 think no loss
Sorry for rambling last couple of points
Where did the one off fee for accountants of 10,000 come from to tell good news
And why is the sentence the same when you pay back 100% early and all fees
To end as a sole trader it was a change of financial climate and a bank even tho
I was crying decided rather than extend my business overdraft for another year that I had never gone over they were going to turn balance into a loan at twice the interest rate
Not all my fault
*links not allowed* has been my sole trader business for 10 years
I also live above so it is my home
Again for business and thinking I could pay it I got a loan from a shark 5000 at just interest of 1000 p month 50 per week per 1000
Also advisor Phil Stone and IP Geoffry m Weisgard Mitchell Charlesworth both retired soon after start of iva accountants ref p646008/jpo
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by Foggy » Thu Jan 04, 2018 9:31 am
I doubt the terms of your IVA required you to sell the house, but there is a lot more going on here than a straightforward IVA. Unless you had different terms to most of us ( which you would have agreed to) then the question of the house would not have come up at the three year appraisal --- what else happened at this time to bring the house into it ? Usually at month 54 you are required to attempt to remortgage and, if unable to do so (as most are) the IVA gets a year added to it. However, some agreements are not written that way. Do you still have your paperwork? What does it say about equity release ?

Did you take the £5k loan from the loan shark while you were still in the IVA (before the 3rd year appraisal) ? If so that would have failed the IVA anyway and, with that sort of equity, the creditors would have possibly gone for bankruptcy. As a sole trader there is a strong possibility that HMRC were a creditor and they do not like it when the debtor doesn't fully comply, especially where there is a chunk of equity ripe for taking.

Unfortunately it would not be her place to stop you as your "advisor" ---- the firm handling your IVA are not your "advisors" once the IVA is up and running --- they become "Supervisors" and are there to make sure you stick to the agreed terms --- it is your IVA and up to you to stick to the agreed terms.
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by Ryan » Thu Jan 04, 2018 10:59 am
HI Barry,

There's a lot of information in there!

Just to clarify - are you in the 5th year of the 3rd year of the IVA as you mention both?

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by kallis3 » Thu Jan 04, 2018 11:15 am
I think you need to simplify things for us so we can advise further.
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by redboxtree » Thu Jan 04, 2018 1:55 pm
The 3 year review rule has been pushed by HMRC so it may depend on whether they were also one of your creditors.

This is likely to be standard moving forwards where anyone in an IVA owing HMRC and with significant equity in their house may find it in their agreement.
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