My mother is about to get an IVA, I feel she is being conned.

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nicky891
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by nicky891 » Mon Jan 22, 2018 5:40 am
Hello,
My mother is about to get an IVA - the company organising this for her have advised that she get together some money to offer. They are telling her I should have the house re-mortgaged to raise this money (I own our house,in deeds and mortgage but the deposit came from the sale of her old house which she gave to me as a late inheritance from my departed father) my question is - is this a sensible idea? I rather feel she’s being conned - the company have said she can use their own loan company to raise the funds on the house if my mortgage provider won’t, which sounds suspicious to me! They have said if she does not offer this money, the creditors will “come after” her for the entire sum she gave to me and could force me to sell the house to pay them - is this likely? Any advice much appreciated.
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Foggy
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by Foggy » Mon Jan 22, 2018 7:51 am
First I would suggest she chat to several firms for advice.

As for the house conundrum .... when did she sell her house and give you the deposit on yours ? The problem here is that, say she was to go bankrupt, the official receiver would get the house sold to get that deposit back if it was done recently, as this could be viewed by creditors as a way of getting rid of assets to deprive creditors. The same principles apply in an IVA, though they cannot force the issue but it could be grounds for refusal of the IVA and give them the seed of the idea of going for bankruptcy. Now ... if you bought your house with her deposit some time ago, when she had no idea she was going to have financial problems, then I would not even mention it --- your house, your finances.
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kallis3
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by kallis3 » Mon Jan 22, 2018 8:52 am
I totally agree with Foggy - speak to some more firms, these sound like bullying tactics to me.

Which firm is it and how was contact made?
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Ryan
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by Ryan » Mon Jan 22, 2018 9:45 am
Hi Nicky,

How much money does she owe and is it on credit cards, loans etc?

Regards
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Lisa Thomas
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by Lisa Thomas » Mon Jan 22, 2018 12:09 pm
I would get more than one opinion.

I presume she has no other assets/income to offer creditors other than her interest in the property?
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nicky891
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by nicky891 » Mon Jan 22, 2018 12:34 pm
Hi everyone
The company is “The Debt Advisor.co.uk”
Her debt is 68,000 and a mix of credit cards and loans.
I bought the house just over two years ago.
She has no other assets to offer and when I have looked at getting a loan for her the payments have been unmanageable for us.
What company’s do you recommend?
Thanks for your advice - losing a lot of sleep over here! :?
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kallis3
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by kallis3 » Mon Jan 22, 2018 12:47 pm
We can't recommend specific companies but have a look round on the forum and see what people are saying. I would certainly recommend speaking to a few more.
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Foggy
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by Foggy » Mon Jan 22, 2018 1:08 pm
I see no reason, two years after the fact, to mention any financial connection with the house. It is your house and your mother lives with you is all they need to know. Does she work and have an income with which to service an IVA ? If so they will base the figures on that, after making allowance for her share of the household expenses.
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Lisa Thomas
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by Lisa Thomas » Mon Jan 22, 2018 4:05 pm
I would need to know more information but on the face of it I would seriously consider the Bankruptcy route - the deposit would not be known as the property is in your name and in any event I can't see she has any interest in the property if you can prove that the deposit was a gift.
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