Lifting a restriction

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jess620

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Post by jess620 » Fri Aug 06, 2021 4:49 am
Dear all

I just completed an IVA. I still have a restriction from one of the creditors who placed an interim charging order on my property. This creditor did not participate in the creditors meeting despite being included in the Iva proposal. They did not receive any dividends from my supervisor throughout the IVA. I want this creditor to lift their restriction as I believe they are legally bound by the IVA and I consider the debt settled. I’m worried that they won’t see it that way. Can you confirm whether they still have a right to not lift the restriction or will they see this as a routine process with no questions asked?

Foggy

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Post by Foggy » Fri Aug 06, 2021 9:33 am
I would ask your IP to do his / her job and sort this out for you. Some creditors can be difficult to deal with and not wanting to engage in the IVA process at all does not bode well.

Much will depend on the nature of this restriction and when it was applied. If it was in place before the IVA was granted the debt might not be covered by the arrangement, being, by then, a secured debt. Although my limited understanding is that an interim order only acts as a restriction on sale and the debt isn't secured on the property until a final order has been granted.

Land Registry might lift it themselves when given evidence of the IVA and it's completion.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

jess620

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Post by jess620 » Fri Aug 06, 2021 10:14 am
Thanks Foggy
Will take it up with my supervisor.
Yes it was an Interim Charging Order. The ICO started before my IVA was agreed but before the final charging order was made. At the hearing to convert the Interim to a final charging order, the process was dismissed at court as I showed evidence (IVA Proposal) that the creditor was in the IVA. Therefore they are still an unsecured creditor.

I checked with one of the call centre team at Debt Movement who advised that in such a situation that as long as the creditor is named in the IVA then they are legally bound by its terms.
Given the previous history of this creditor I'm just a little nervous that the creditor wont play ball.

I just need to know that the debt is legally settled and that they dont have any right to hang on to the restriction (even if they did not receive a dividend payment).

Foggy

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Post by Foggy » Fri Aug 06, 2021 10:21 am
As I understand it, if they were correctly included in the IVA, even if they decided not to participate, they are bound by its terms and the debt will have been written off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

jess620

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Post by jess620 » Fri Aug 06, 2021 10:32 am
Hi Foggy
Thank you very much - that was my understanding too

jess620

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Post by jess620 » Wed Aug 18, 2021 6:55 am
Just to let you know that the creditor has lifted the Interim Charging Order restriction with no issues.

This proves that a debt with an Interim Charging order is definitely unsecured and will be discharged after the completion of an IVA.

kallis3

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Post by kallis3 » Wed Aug 18, 2021 7:00 am
Great news Jess - glad it worked out!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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jess620

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Post by jess620 » Wed Aug 18, 2021 7:17 am
Thanks Kallis3

Foggy

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Post by Foggy » Wed Aug 18, 2021 9:05 am
Wed Aug 18, 2021 6:55 amjess620 wrote:
Just to let you know that the creditor has lifted the Interim Charging Order restriction with no issues.

This proves that a debt with an Interim Charging order is definitely unsecured and will be discharged after the completion of an IVA.
Thank you. Yes, an interim order is still unsecured. Different story if unchallenged and the court make it final after the 28 days. Luckily you got in there first. Well done.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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