I need to pay £7000 to the new landlord upfront otherwise l will be homeless

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calli
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by calli » Wed Jan 17, 2018 2:00 pm
Hi everyone,

Please can you advise. I am currently just starting my 5th year in my IVA. l had agreed previously that my IVA would run into a 6th year which means it ending March 2019. I have taken a payment break this month after submitting a request to settle the IVA with a lump sum. If l was to continue making payments monthly until March 2019 then l would pay a total of around £2300. I submitted an initial settlement figure of £600.
I have now been told by my IVA company they will not look at this as l have failed my IVA due to a loan l have taken out. My situation is my house is literally uninhabitable now as l have not been able to afford to maintain the property and recently had my roof collapse meaning it's dangerous to even live in the property. I inquired if l could sell my house and pay back what l would have paid in my monthly installment up until the end of the agreement. Again my IVA company have said they will not consider this so l am currently living with friends as l cannot live in my own home or afford to have the work done to repair the property.
I have signed a contract with a cash house buyer and am hoping for the sale to complete within the month.
My question.....after my mortgage has been paid l need to then secure private rented accommodation and have found a landlord who will take an up front payment of 12 months, approx £7000. This leaves me with around £10,000. My outstanding debt total is around £18,000. How do l negotiate with my IVA company to ensure l do not lose all my money.
I need to pay the £7000 to the new landlord upfront otherwise l will be homeless as l will not pass a credit check to rent a property monthly.
What and how will my IVA company do to recover any money I'm left with after the sale and is there a way around keeping my money safe whilst l negotiate with them?
Previous to the IVA l was on a debt management plan so have been paying this debt for well over 8 years now. I am in a worse position now than when l started.
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Foggy
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by Foggy » Wed Jan 17, 2018 2:22 pm
I am afraid that if you sell the house now your creditors are entitled to 85% of the equity as you are disposing of an asset. You do not merely "owe" the remaining payments, but still actually owe the full original debt, plus fees and possible statutory interest.

Unfortunately you have put the cart before the horse --- but the damage is done now, judging by the stance your IP seems to be taking. You appear to have ignored the advice given to you in November. But, of course, the loan might be the nail in the coffin here.

What was the loan you took out ?
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Shaun Vickery
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by Shaun Vickery » Wed Jan 17, 2018 5:12 pm
You say that you have just entered your 5th year but that your IVA had failed. I think the experts will need to be clear on whether it has or hasn't failed as this may alter their comments.
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luluj
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by luluj » Wed Jan 17, 2018 6:03 pm
Has your iva failed or is it still ongoing into the 6th year ?

What was the loan for ?

Difficult situation you are facing - let us know how you get on
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kallis3
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by kallis3 » Wed Jan 17, 2018 6:09 pm
I do think you need to give us some more information.
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Lisa Thomas
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by Lisa Thomas » Thu Jan 18, 2018 9:50 am
Has the IVA already failed? It seems not from what you have said.

Why has the IP said they will not put an F&F offer to creditors/ They don't have a choice - they have to - it's up to creditors to decide whether to accept your offer, not the IP (unless the IVA has indeed failed).

Find a different landlord and/or try and find a third party guarantor.

How you managed to get a loan when you are in an IVA is a surprise.

Are you sure you are in an IVA?
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calli
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by calli » Thu Jan 18, 2018 8:33 pm
Foggy wrote:
I am afraid that if you sell the house now your creditors are entitled to 85% of the equity as you are disposing of an asset. You do not merely "owe" the remaining payments, but still actually owe the full original debt, plus fees and possible statutory interest.

Unfortunately you have put the cart before the horse --- but the damage is done now, judging by the stance your IP seems to be taking. You appear to have ignored the advice given to you in November. But, of course, the loan might be the nail in the coffin here.

What was the loan you took out ?



Hi Foggy,

The loan was to replace my boiler. I haven't intentionally ignored any advice, l was unable to log on to the site.

Any advice would be appreciated. I'm really desperate now
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calli
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by calli » Thu Jan 18, 2018 8:37 pm
Hi everyone,

Thanks for replying.

My loan was to replace my boiler as l was without heating and hot water.

I'm definitely in an IVA, end of 5th year would be March 2018.

The IVA company are refusing to approach my creditors as they are saying l have failed the IVA by taking out a loan.

Currently agreed a payment break of 2 months. I hope the sale of my house will go through in the next 2 weeks.

How do l stop them getting hold of my money so l can negotiate a reasonable settlement figure with the creditors?

All help appreciated.
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Lisa Thomas
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by Lisa Thomas » Fri Jan 19, 2018 9:37 am
You need to get an agreement in place BEFORE you sell the house. I strongly suggest you take advice and pause the sale or you will lose all of your share of equity into the IVA unless and util the total debts, interest and costs have been paid in full.

I recommend you urgently speak to an IP or a specialist insolvency solicitor asap.
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calli
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by calli » Fri Jan 19, 2018 9:45 am
Lisa Thomas wrote:
You need to get an agreement in place BEFORE you sell the house. I strongly suggest you take advice and pause the sale or you will lose all of your share of equity into the IVA unless and util the total debts, interest and costs have been paid in full.

I recommend you urgently speak to an IP or a specialist insolvency solicitor asap.


I have tried to speak to them on several occasions but they are now refusing to even put a settlement figure to my creditors because they say l will now fail the IVA due to the loan l took out.

They are not willing to even consider a settlement. I asked them if they would still go to my creditors and ask about the settlement and they have refused saying l now need to sell, instruct a solicitor to ensure the money will be frozen.

This doesn't seem right at all to Me?
I've not officially failed. I'm currently on a 1 month payment break?

They've refused to go to my creditors on my behalf. I've asked countless times for them to provide me with a list and amount owed to my creditors and they have just ignored my request.

They are not being helpful which is why love resorted to the quick house sale. I am now homeless as l cannot live in the property. They are aware of this and still will not offer any other solution than to sell and repay in full.
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Foggy
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by Foggy » Fri Jan 19, 2018 12:14 pm
At the very least they should allow you to put the whole thing (loan, reasons and all) to the creditors for them to decide on how to proceed. Which firm are you dealing with here ?

Lisa's suggestion of having a chat with a specialist Insolvency solicitor is a good one. In the meantime all you can do is lodge a formal complaint with your IP and escalate a complaint to their regulators via the Government Gateway here: https://www.gov.uk/complain-about-insol ... actitioner
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calli
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by calli » Fri Jan 19, 2018 12:21 pm
I am with Aperture, they are refusing to put anything to the creditors saying l have failed bit they have not officially told me l have failed. They say , there's no point putting settlement to the creditors as they will not consider it as l have taken out the loan?

This isn't right is it?
They are basically bullying me to sell my property?
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Foggy
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by Foggy » Fri Jan 19, 2018 1:01 pm
The fact that you have taken out a loan without permission is grounds to fail the IVA --- but, as I said, they could at least ask the creditors if they would be willing to forgive the situation in light of the pressing needs at the time.
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calli
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by calli » Fri Jan 19, 2018 1:21 pm
Thank you for your help Foggy. I have made an appointment with a solicitor so will contact them again after I've spoken to him.

I understand l entered into a contract with IVA company but they are being beyond unreasonable.

I'm willing to pay after the sale of my house but considering l have always kept up with payments etc, I'm struggling to understand why they would not negotiate a settlement as well as considering this would be end of the 5th year in March 2018?
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Lisa Thomas
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by Lisa Thomas » Fri Jan 19, 2018 2:37 pm
Make sure the solicitors specialises in Insolvency.
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