In an IVA for 5 years, demands are now being made to pay full property price.

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idowu
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by idowu » Thu Oct 19, 2017 2:12 pm
He has been in an IVA for five years and not defaulted. He says he had the IVA attached to his property and now he is having problems as 'Money Plus' are demanding he pay the full amount of �21,000. The line was fuzzy so it was hard to understand if he said he wanted to sell his property or if he was saying he was having to move out.
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Foggy
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by Foggy » Thu Oct 19, 2017 3:08 pm
You need to read your proposal carefully to see what it says exactly about equity release. They cannot force you to sell, but are asking you to try to release some of the equity. Usually, if you are unable to do that the IVA will be extended by 12 months.
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Keith White
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by Keith White » Thu Oct 19, 2017 4:06 pm
He can't be asked to sell the property or move out. Or to pay a lump sum he doesn't have. As Foggy says its equity release or potentially 12 months of extra IVA payments.
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idowu
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by idowu » Thu Oct 19, 2017 4:53 pm
idowu wrote:
He has been in an IVA for five years and not defaulted. He says he had the IVA attached to his property and now he is having problems as 'Money Plus' are demanding he pay the full amount of �21,000. The line was fuzzy so it was hard to understand if he said he wanted to sell his property or if he was saying he was having to move out.


The amount they are asking me to pay is £41,289 and not £21,000. Also the property is being purchased compulsory by the local authority for regeneration. It's not IVA that is forcing me. The issue here is that having done 5 years and am being asked to pay full IVA money is not fair. Also it will affect my ability to buy another property if such amount is taken from the purchase of the property bearing in mind that I have to redeem the mortgage as well. The restriction placed on the property is making the sale of the property to be difficult. I am willing to pay a one off £10k tonthe creditors in order to get discharged, even though the £10k is not convenient.
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Foggy
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by Foggy » Thu Oct 19, 2017 5:06 pm
Ah right ..... I am afraid that, under the terms of the IVA the proceeds of the sale is due to your creditors. It is unfortunate timing and you might be able to negotiate with your IP -- but it will be at his discretion. I wonder if you could get any assistance from the authority purchasing your home --- a compulsory purchase should not leave you worse off than if you had sold voluntarily on the open market --- and this will, because of the timing.

We had one poster who was being purchased and the authority paid for a settlement of the IVA ( as I understood it) and made the purchase after the IVA was ended (probably less the settlement figure).
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