I want to sell my house to pay off the rest of my iva

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tony237
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by tony237 » Tue Aug 01, 2017 6:21 pm
I originally owed £29k, I am in the 6th year of my iva, I have paid £14k into the iva. I want to sell my house to pay off the rest . My portion of the equity is about £85k. How much will, or can they take from me, can they take more than I owe?
My IVA company is payplan
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Foggy
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by Foggy » Tue Aug 01, 2017 6:37 pm
They will take enough to cover the full original debt, plus fees and statutory interest.

As you are in the 6th year there should not be long to go anyway. Is the 6th year due to equity release - that is to say you are not facing a further 12 month extension ?
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tony237
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by tony237 » Tue Aug 01, 2017 8:27 pm
The 6th year has only just started for me , It is because of the equity in the property and not being able to remortgage to pay it off. They say on my login page that I am behind with my payments by £ 12,340. The main reason I want to sell my house is so I can buy a cheap house in Wales and start a new life as an artist. What I am really concerned about is how much of my equity can they really take . I am fine with a figure of £20,000 which would mean a total of £34,000 for my original £29,000 debt , but If It is something like £40,-£50,000 that would really mess my plans up.
Also while I have been waiting on them to calculate how much I will have to pay ,& free up the hold on the property so I can actually sell it (Its been 7 weeks since I asked them to do this) They have sent me 3 letters saying I am in danger of failing my IVA and being made bankrupt, when I have spoken to them they have told me to ignore the letters as it is just an automated process that they have to go through. I am finding the whole thing very disturbing and I am not sure what they really want to do with me. I dont understand , I can only see that If I am willing to sell off my house and pay my creditors all of the money that I originally owed ,surely that is the best outcome for them also ,so why the delay and the threatening letters, If anyone can shed any light on this I would be thankful.

?
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Foggy
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by Foggy » Tue Aug 01, 2017 8:42 pm
On a debt of £29000 you would need to pay across around £46,500 to pay the original debt, fees and statutory interest, so they will take this amount less any payments made to date.

You could make a full and final offer (rather than a settlement) in which you OFFER to sell up to pay them the total of your remaining payments --- as far as they are concerned if they do not accept the offer you do not sell up. This will cost you far less. However, F&F offers take a while to put together (a couple of months for most firms, up to 6 months for Payplan) so you would have to get the offer in fast to make it worthwhile.
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tony237
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by tony237 » Tue Aug 01, 2017 9:23 pm
Ouch , that sucks... But I thank you for being the only person who has given me an idea of what they can take.
I must say I am most surprised by the fact that a debt relief company who claimed to want to help me pay of less that what I owed over a 5 year period , would turn around at the end and take 15k more than I originally owed, I will have to way up what I could get for the house now and what It might be worth in 6 months time once brexit hurts London a bit . It will be a close call.
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luluj
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by luluj » Wed Aug 02, 2017 1:17 am
If it were me I would hold out until the end of my iva - await my completion certificate and then move enabling you to benefit from your house sale.
By the time a f&f offer is made, agreed and paid will most probably be the end of the 12 month extension.
Good luck x
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Michael Peoples
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by Michael Peoples » Wed Aug 02, 2017 8:04 am
You could look to borrow the amount remaining in payments and offer this as a full and final settlement. If you cannot source this money from friends or family you could get it via a secured loan and Shaun Vickery from Select who posts here could possibly help. Do the full and final and then sell meaning you could keep the rest and potentially save yourself thousands.

Payplan can be slow in drafting variations but if you quote the terms and conditions and email their IP it seems to speed the process up.
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Lisa Thomas
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by Lisa Thomas » Wed Aug 02, 2017 8:05 am
How have you managed to build up arrears of c£12k and not fail the IVA?
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Foggy
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by Foggy » Wed Aug 02, 2017 8:43 am
Lisa Thomas wrote:
How have you managed to build up arrears of c£12k and not fail the IVA?



I think that this is a glitch in the accounting software, Lisa. Maybe the £12k is the balance needed to settle (debt, fees and interest, less payments to date) and the computer has got itself in a loop. They have admitted the letters being sent are a computer error, so this figure could be as well.
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Michael Peoples
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by Michael Peoples » Wed Aug 02, 2017 8:49 am
It also could be an estimate for the equity release and shows now as arrears because no release happened. It would be interesting to hear from Tony to see if he knows.
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tony237
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by tony237 » Thu Aug 03, 2017 6:19 pm
The £12,000 plus does come from me not being able to obtain a re-mortgage .I am still not sure what to do ,I think will wait until I hear the exact figure from them before I decide.
I recently nearly lost my property...
The council (Lambeth installed new central heating in my flat 3 years ago , I didnt need it or want ,but was told as a leaseholder I would have to pay my portion anyway as I live in a block of flats , some owned and the rest council tenants ) It took them 1 year to figure out how much we had to pay for it. £10,500 was the figure they came up with. Being on the iva meant I had no money to pay them , so I didnt. After another year we started to get some letters saying we had to pay, so I started to pay them £100 per month, out of my overtime money . after a few months they said they were not happy with this , and were going to pursue a CCJ. My Wife and daughter got together on this and we started to pay them £430 a month ( It was during a 4 month period where I wasnt paying my iva , as I was waiting to hear from them to see if I was going to be kicked off of it , over a matter when I had offered to pay them £16,000 as full and final settlement . ( money I had won gambling , unfortunately I had lost it all by the time they got back to me . Hence them seeing what my creditors wanted to do with me. )
Anyway 3 months into paying the £430 , a letter came from the county court, saying they agreed that all we could pay them was £430 a month, and that our 1st payment in this should be made by the 28th of July. Then we recieved a letter from Lambeths solicitor , saying that Lambeth have envoked a clause as they were not happy with the CCJ and we had 7 days to pay them £9,500 or they would foreclose on the lease , and take back the property and leave us homeless and still in debt to the iva. I got as much advice and help as I could ,but it seemed I didnt have any choice. So at the last minute we managed to borrow £10,000 from my wifes friend , with the agreement that we would pay her the same as we would have the CCJ , and the rest as soon as we sold the house. Phew...So I nearly had nothing , no house , no home , no future dream, just homelessness and debt. So as long as my dream of living in Wales and becoming an artist again is still alive , I am reasonably happy , and I also have the burden of knowing we promised to sell the house asap to pay back the £10,000 ....
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Michael Peoples
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by Michael Peoples » Fri Aug 04, 2017 8:36 am
If you can raise a lump sum top close the IVA this would surely be your best route. If you can borrow the money from friends or family the file could be closed quickly or speak to Shaun Vickery about a secured loan if this is not an option.
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tony237
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by tony237 » Mon Aug 14, 2017 2:26 pm
I have just received another letter from payplan saying I have 7 days in which to clear my arrears ,arrange a suitable repayment plan or request a variation to my iva , or they will pass my case onto the supervisor to begin the iva failure proccess , I have been to citizens advice and have arranged a meeting for the 22nd , have been trying to get through to payplan via the phone without success , have left an emailed request to my case handler , but no responce as of yet . what can I do
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Michael Peoples
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by Michael Peoples » Mon Aug 14, 2017 3:21 pm
I have answered your other post but I would also suggest you email your IP directly if you are getting nowhere. Our regulators detest unanswered correspondence [ and rightly so] so an email to the IP and possibly a registered letter could buy time until you find a solution.
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