Removing a restriction

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Enjoyingthesimple

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Post by Enjoyingthesimple » Tue Aug 27, 2019 6:57 pm
I'm nearing month 45 of my IVA with a £32k debt, it was initially with Knightsbridge and then sold on to Creditfix a year or two ago. After paying close to £300 a month, I phoned them for a settlement figure and it's still £28k. They say it's this high because of statutory interest and other fees. I've received a breakdown document detailing the figures and all seems correct but of course it looks as though I've paid £13.5k so far and only chopped £4k off my debt to date. (This they never explain clearly at the start of the IVA).

So, moving forward. My ex is still on the mortgage, we are on good terms and he wants me to put the house on the market now before the month 54 request to remortgage as he wants to buy himself another home. I know this means that I won't be able to make a F&F offer of a lower amount and they will expect the full £28k (They have already told me this). My ex has offered to pay the full £28k off for me as long as the RX1 is removed straight away, I'll pay him back with my share of the equity once the house has been sold. Even though I asked the advisors at Creditfix, they don't seem to have a clear answer. They have said that as long as I show the Land Registry an email/letter proving that I have paid the debt plus fees off in full they 'should' be able to remove the restriction for me....this seems very vague.

Is anybody able to clarify this for me?

Foggy

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Post by Foggy » Tue Aug 27, 2019 7:43 pm
First of all CF are possibly pulling a fast one! A settlement figure is the amount required to pay off the full debt, plus fees and statutory interest. Most people end an IVA early, not by making a settlement, but by making a full and final offer. This is based on the number of payments left ( plus 12 for equity) multiplkied by the current agreed monthly amount --- this gives the creditors what they signed up for. The are not expecting a settlement and CF are looking at fatter fees for the higher payment.

So you have 15 months to go, assuming a 5 year IVA, add the 12 in lieu of equity and a reasonable F&F would be based on 27 x 300 = £8100. (Bit less than £28k!)

On to the restriction -- this will be removed by CF when the IVA is concluded.
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

Enjoyingthesimple

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Joined: Tue Aug 27, 2019 6:33 pm

Post by Enjoyingthesimple » Tue Aug 27, 2019 10:25 pm
Thanks for the reply, I completely understand what you are saying, but they said that in order for me to sell the house and lift the RX1 before the end of the term they would want all of the £28k, they did say they wouldn’t lift the restriction for anything less, I asked if a £10k offer would suffice and they said that in a usual f & f they wouldn’t lift the restriction until the end of year 6 anyway, but they have me over a barrel because I need this lifted before any sale of the house completes.

kallis3

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Post by kallis3 » Wed Aug 28, 2019 8:21 am
As far as I am aware, as soon as the IVA is completed they should remove the RX1 straight away - you can then do what you want with the house.
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.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Aug 28, 2019 9:34 am
They are being unfair and, frankly, money grabbing as well as talking rubbish. I would lodge a formal complaint with your IP and escalate this to their regulatory body. https://www.gov.uk/complain-about-insol ... actitioner
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

Enjoyingthesimple

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Post by Enjoyingthesimple » Wed Aug 28, 2019 3:05 pm
Thanks Foggy and Kallis. I have now lodged a formal complaint, so thank you for the advice. If I do successfully offer them an amount based on the final 27 months £8-9k how long does the whole process of calling a meeting and accepting the deal take from start to finish?

Foggy

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Post by Foggy » Wed Aug 28, 2019 3:58 pm
Wed Aug 28, 2019 3:05 pmEnjoyingthesimple wrote:
Thanks Foggy and Kallis. I have now lodged a formal complaint, so thank you for the advice. If I do successfully offer them an amount based on the final 27 months £8-9k how long does the whole process of calling a meeting and accepting the deal take from start to finish?
Normally 2 - 3 months. However, I am afraid to say, that CF have an awful track record here too !
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

Enjoyingthesimple

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Joined: Tue Aug 27, 2019 6:33 pm

Post by Enjoyingthesimple » Wed Aug 28, 2019 3:59 pm
Oh goodness, I’ll let you know how I get on with it.
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