IVA and house move - possible foul play issues!

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benjiv50
Posts: 10
by benjiv50 » Fri Nov 03, 2017 2:29 pm
Hi guys, bit of a complicated one this so I'll post a timeline of events first with my questions after;

1. Me and wife apply for joint IVA 2 years ago
2. Joint IVA gets rejected, sole IVA in wife's name is accepted which contained debts for total of 4 creditors totalling approx 8k.
3. Each year wife had to submit income/expenditure
4. Approx 1 and 1/2 years wife is asked to sign a form giving consent to placement of restriction on land registry should house be sold.
5. One of creditors write to advise debt written off
6. 2 months ago we decide to sell house.
7. 1 month after offer is accepted.
8. We then get notified by solicitor that he has to withhold 12k due to land registry restriction.
9. Due to land registry restriction solicitor asks for more money and for dealing with IVA people
10. IVA people advise they cannot confirm 6k of the debt and for not know who actually owns the debt, so have given them 28 days to respond and confirm debt.
11. Whilst doing admin I personally noticed that one of the debts in my wife's IVA was in my name and not hers and also that 6k of the total amount was for accounts to one creditor which since cannot be confirmed and are not on wife's credit report therefore are not applicable to total debt amount in IVA
12. IVA people confirm that as the 6k debt is not on wife's credit report it's actually invalid and does not stand.
13. Total debt now owed goes from 8k plus to £800 which is now the only one outstanding debt which can be confirmed by creditors and is actually in wife's name

Here are my questions:

1. One of my debts was included in my wife's IVA, the creditor has confirmed it's in my name and not hers, what can be done legally about this error?
2. The original amount was 8k plus, however without the account in my name the total would be approx 6k, would this be enough to create an IVA?
3. Why were the accounts not confirmed before IVA commencement? Because If they were then the IVA would not be valid!
4. Who have the IVA company been having yearly creditor meetings with if one account was in my name and one other creditor, which held 3 accounts, aren't even trading anymore and haven't still confirmed any of the debts?
5. This land registry restriction has caused us a delay in selling the house, and cost us additional money, however considering all of my points above, the restriction should not of been applied because the actual total amount of debt now stands at £800, not the original £8k, which included a debt in my name!
6. Do we have any grounds to request or even demand this IVA be annulled and the registry restriction immediately be removed?

Our initial qualm at the moment is not all of the facts above about the incorrect information within my wife's IVA, it's the land registry restriction because it's causing an unbelievable amount of admin, calls, stress and extra solicitor charges to us and delaying the property sale.

Personally after writing all this I think this IVA and the way it was created is dodgy, it seems it was created to simply gain a completion fee by the insolvency team and nothing was confirmed by them before creating it to actually make sure it met the IVA requirements. The IVA company have been telling us they have been having creditor meetings, load of tosh, what about the original meeting to agree the actual IVA, they didn't even know who owned 6k of the debt!

Anyway I appreciate there's a lot of info there and would appreciate any professional advice on this issue.
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Foggy
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by Foggy » Fri Nov 03, 2017 4:59 pm
1. One of my debts was included in my wife's IVA, the creditor has confirmed it's in my name and not hers, what can be done legally about this error?
Nothing -- your wife signed the proposal staing the contents were accurate.

2. The original amount was 8k plus, however without the account in my name the total would be approx 6k, would this be enough to create an IVA?
Not on it's own, but this was not known at the time and the amount was signed off as above.

3. Why were the accounts not confirmed before IVA commencement? Because If they were then the IVA would not be valid!
They were --- you signed them off as accurate at the time.

4. Who have the IVA company been having yearly creditor meetings with if one account was in my name and one other creditor, which held 3 accounts, aren't even trading anymore and haven't still confirmed any of the debts?
There are rarely physical meetings ... what they do is simply send out reports.

5. This land registry restriction has caused us a delay in selling the house, and cost us additional money, however considering all of my points above, the restriction should not of been applied because the actual total amount of debt now stands at £800, not the original £8k, which included a debt in my name!
The equity is an asset of the IVA regardless of the amount of debt, therefore the restriction was properly applied with the facts as believed at the time.

6. Do we have any grounds to request or even demand this IVA be annulled and the registry restriction immediately be removed?
There might have been an almighty mess up along the line, but an IVA largely stands on what the IP is told by the debtor at the time. You might have an arguement regarding the lifting of the restriction.

Sorry they are not very helpful or inspiring replies, but, in the Insolvency World, we, the debtors have very little comeback available to us.
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