question for melanie re ipa

[scaredkez]

hi melanie, thanks in advance, after seeing my OR he never set an IPA, but on his deductions and allowances that he allowed we only had £52 surplus, however we are being passed over to a trustee because of the equity in the house, and it was something he said to me when we were discussing the car and i mentioned the IPA and he said the Trustee will deal with that, so my question is, is it likely he will change the allowances that the OR set out in my interview, i have no records of them as we were not given them, it was all done on the interview, i have since heard nothing since the last talk over the car with him, i just dont want to get a surprise when i thought i didn't get an ipa off the OR ( i had to sign the forms which he changed so these would go to the trustee anyway i take it)start to worry when you hear nothing, as the next thing to go will be the house and we are not sure how long it will be until we hear off trustee someone said it can be as long as 4 months after date of BR?

thanks again melanie
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Hi Kerri

In my professional opinion, and of course I can only speak from my own experience, I think it very unlikely that your new Trustee will seek any form of ongoing payment order against you. This is usually set by the OR prior to him handing over the case to a private sector IP - and with only £52 surplus, there would be no point in collecting contributions so low.

I am sure that the new Trustee will contact you as soon as he/she is appointed, and will then be able to discuss their strategy with regard the house equity with you directly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[scaredkez]

thanks melanie, its just after the episode of the car, hubby and i had worked on the basis of think of the worst scenario and go from there, and the car was never in that equation, i think we are now over worrying of every worse case scenario, and not having anything in writing from the or himself,makes us worry all the more, down to what if the trustee wants to take the car again, which i know can't happen, we have spent the weekend looking at rentals and finding it so hard to find somewhere that will take us whilst BR for the area we want as there is no private lets, will have to stop worrying about things that haven't happened yet, thanks for your valued help and comments.
kerri

Please view my blog at: http://scaredkez.blogs.iva.co.uk/

[MelanieGiles]

Kerri

Don't forget you have the best part of a year to find somewhere, so don't jump at the first one you see. I regularly act as private sector Trustee in cases similar to yours, and the last thing I do is pressurise families out their homes before time. I am sure that you will strike up a good relationship with the IP appointed, and so long as you co-operate with him (no doubt in my mind that you won't!) he will do the same with you.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Soulgrowth]

Reading your comments here Melanie and your experience with working as a Trustee ... just to let you know that further to my earlier postings a few weeks back ** regarding the unexpected happenings with the responsibility for the lease for my old business falling upon me. I have found some great help from a local company who have come up with a few possible avenues to a solution which they are working on at the moment. One suggestion is that my daughter and young family are living in the property that I would have to sell if I took the bankruptcy route (there is a possibility that we may be able to avoid that by offering a full and final settlement ... fingers crossed), that we make her a legal tenant for a year with a solicitor's drawn up tenancy agreement which should protect the property from being sold for that duration. At the end of the bankruptcy discharge period the Trustee will be looking to sell the property as an asset but that I should be able to buy the property myself as a discharge bankrupt on the strength of one of the many companies that are now willing to lend mortgages to bankrupts. Is this a solution that you have ever come across in your experience as a Trustee I wonder?

Debbie

** http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=2752
added for reference by admin

[MelanieGiles]

Hi Debbie

Well that certainly could work, and I do have some experience of bankrupts raising equity money after they have received their discharge. Why not? As for making your daughter a legal tenant, I am not sure that is necessary, and may eventually affect the type of mortgage you are able to obtain, but do discuss this with your own Trustee who has detailed knowledge of your case.

Good luck - and glad you seem to have found a solution to suit your circumstances.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Soulgrowth]

Thanks for your help once again Melanie. My daughter lives in my property and I in hers ... a practical arrangement set up long before I even knew about IVAs ... the IP I am now dealing with said that because I don't live in my property the Trustee might want to sell before the one year (hopefully!) discharge period, although this would make my daughter, son-in-law and grandchildren (4 and 11 weeks old)homeless and so we need to protect them for a bit of breathing space ... hence the suggestion of the legal tenancy.

The other solution might be to sell my property now to my daughter on a 'buy to let' mortgage ... we each have a sitting tenant ... ourselves, if you see what I mean ... then offer a full and final settlement to the creditors as, strangely enough,the current amount of equity in my property equates to the total amount of IVA payments I would pay over the duration plus the £25,000 re-mortgage I have to arrange in four years! Thus the creditors wouldn't lose out too much at all by settling for a full and final settlement now. Once a full and final settlement had been accepted (hopefully)I could then buy back my property from daughter!

Just as a matter of interest my new 'advisors'(who are really progressive by the way ... (would be happy to post the web link for others here if I am allowed to)said that this would only be possible because McCambridge Duffy had set up my IVA so brilliantly in the first place. One thing I have to discover is whether they have put a charge on the house for the re-mortgage, but I am sure that they would have told me of they have? McCambridge Duffy have been ongoingly great in being unhelpfully helpful if you know what I mean so I am sure that they would tell me if I enquired. I had not realised that you had worked for McCambridge Duffy Melanie, but I now see why you are so lovely ... from the outset you reminded me of the lovely Dorothy Brown ... both from the same ilk Do you know Dorothy?

Debbie

[MelanieGiles]

Deborah

You cannot grant your daughter a tenancy simply to avoid the Trustee selling the property. Please take proper legal advice on this point, as when you are bankrupt you will have no power to enter into land transactions. I can understand your reasoning for thinking this is a good ideam but I don't share the view of your current advisor - but must caveat that point by saying that I am only responding to the briefest of information you are posting and they probably have far more information relating to your case.

There would be nothing wrong in selling your property to your daughter, so long as the transactions was at proper market value - get a proper estate agent's valuation to cover yourselves against any future challenge by a bankruptcy Trustee.

Yes Deborah, I know Dorothy Brown very well, we were fellow Managers at PricewaterhouseCoopers together throughout the 1990's! The insolvency world is a small one!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Soulgrowth]

Hi Melanie

It is a small world isn't it!

There is already a tenancy agreement in place which we set up when we swapped living arrangments in 2005 ... it was a downloaded version from one of those legal websites, I think the IP was just throwing some ideas around with it being firmed up again.

I will keep you posted

Debbie